AI Startup DiligenceSquared Aims to Cut Private Equity Research Costs

A new startup is trying to change how private equity firms conduct deal research by combining artificial intelligence voice agents with human consulting expertise. The company, called DiligenceSquared, says its approach can dramatically reduce the cost of commercial due diligence while still delivering insights comparable to traditional consulting firms.

Private equity firms typically rely on consulting giants such as McKinsey & Company, Bain & Company, and Boston Consulting Group to evaluate potential acquisitions. These projects often involve extensive customer interviews, industry analysis, and detailed reports that guide investment decisions. However, such studies can cost between 500,000 dollars and 1 million dollars per project, which limits how often firms can conduct deep research.

DiligenceSquared is attempting to disrupt that model by using AI to automate part of the process.

Using AI Voice Agents for Customer Interviews

At the center of the company’s approach are AI voice agents that conduct structured interviews with customers of companies being considered for acquisition. These interviews help private equity firms understand customer satisfaction, product demand, and market positioning before committing to a deal.

Instead of relying entirely on human consultants to conduct these interviews, DiligenceSquared’s AI agents handle the initial data collection. The results are then analyzed and refined by senior consultants who review the information, interpret the findings, and produce a structured research report.

The final output is designed to resemble the commercial due diligence reports typically produced by major consulting firms. These reports often exceed 200 pages and provide detailed insights into market demand, competitive positioning, and customer sentiment.

By automating the interview process and combining it with human oversight, DiligenceSquared claims it can deliver similar research packages for roughly 50,000 dollars per project, which is about one tenth of the traditional cost.

Founders With Consulting and Finance Backgrounds

The company was founded by three professionals with experience across consulting, finance, and technology.

One of the founders, Frederik Hansen, previously worked as a principal at Blackstone, where he commissioned commercial due diligence projects for large buyout deals. His experience highlighted how expensive and time-consuming traditional research could be.

Co-founder Søren Biltoft spent seven years working in the private equity practice at Boston Consulting Group. During that time, he worked closely with investment firms evaluating potential acquisitions.

The third co-founder, Harshil Rastogi, previously worked as an engineer at Google, bringing technical expertise in artificial intelligence and scalable software systems.

The combination of financial, consulting, and engineering backgrounds helped shape the company’s hybrid model that blends AI automation with human expertise.

Early Traction With Private Equity Firms

DiligenceSquared officially launched in October 2025 and has already completed multiple research projects for private equity firms.

According to the company, both large global investment firms and mid-market funds have used the platform to conduct early-stage research on potential deals. The ability to run customer interviews quickly and at lower cost allows investors to evaluate opportunities earlier in the deal pipeline.

Traditional consulting engagements are usually reserved for deals that have already progressed far into the evaluation process because of their high cost. DiligenceSquared’s approach aims to shift that timeline by making research affordable earlier in the investment cycle.

Funding and Investor Support

To expand its operations, DiligenceSquared recently raised 5 million dollars in seed funding.

The investment round was led by venture capitalist Damir Becirovic through his firm Relentless Venture Capital. The funding will help the company develop its AI interview technology and expand its consulting capabilities.

Seed funding rounds at this stage typically focus on refining the product and scaling early customer relationships.

Competition in the AI Research Market

DiligenceSquared is not the only startup trying to modernize market research using artificial intelligence.

Several companies are developing AI systems that conduct interviews and collect insights automatically. Examples include platforms such as Keplar, Outset, and Listen Labs.

However, these companies primarily focus on consumer research and product feedback rather than private equity investment analysis.

A closer competitor is Bridgetown Research, which is also building AI tools designed specifically for commercial due diligence. Bridgetown recently raised 19 million dollars in Series A funding from investors including Accel and Lightspeed Venture Partners.

As more investors adopt AI research tools, competition in this emerging category is expected to increase.

Changing How Investment Research Works

The private equity industry has traditionally relied on expensive consulting engagements to validate investment opportunities. While these reports provide valuable insights, their cost and timeline often limit how frequently they can be used.

DiligenceSquared’s model suggests a different approach. By combining AI voice interviews with human analysis, firms may be able to run deeper research earlier in the deal process.

This could allow investors to explore more potential opportunities while reducing the financial risk associated with extensive consulting projects.

A Potential Shift in the Due Diligence Industry

If the model proves successful, it could change how due diligence research is conducted across the investment industry.

Lower research costs could make detailed market analysis accessible for smaller deals or earlier stage opportunities. At the same time, AI automation could significantly reduce the time required to collect and analyze customer insights.

For now, DiligenceSquared represents a growing trend in which artificial intelligence is reshaping professional services that were once dominated by traditional consulting firms.

As AI continues to automate research and analysis tasks, the line between technology platforms and consulting services may continue to blur.