DiligenceSquared Revolutionizes M&A with AI and Voice Agents

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Key Takeaways

1DiligenceSquared uses AI to reduce research costs in M&A, making the process more accessible.

2The startup, backed by Y Combinator, has raised $5 million to develop its technology.

3AI voice agents replace expensive consultants, providing analyses for $50,000 instead of $1 million.

💡Why it matters — This approach could transform how private equity firms conduct their research, democratizing access to high-quality insights.

A Costly and Complex M&A Process

Mergers and acquisitions (M&A) are often synonymous with complexity and high costs. Even large private equity firms, equipped with substantial human and financial resources, face significant expenses. These companies dedicate numerous hours to meeting with executives of potential targets and developing financial models. Simultaneously, they invest millions of dollars in external advisors such as accountants, lawyers, and management consultants.

These fees, non-refundable in the event of a transaction failure, compel private equity firms to wait for certainty before engaging expensive consultants. These experts, hailing from prestigious firms like McKinsey, BCG, or Bain, are sought to conduct in-depth market research and analysis of the target company.

The Innovation of DiligenceSquared

DiligenceSquared, a startup from the Fall 2025 cohort of Y Combinator, offers an innovative alternative. Leveraging artificial intelligence (AI), it promises to deliver business research of a quality comparable to that of the top consulting firms, but at a significantly lower cost.

The founders of DiligenceSquared, Frederik Hansen and Søren Biltoft, bring solid expertise in due diligence within the private equity sector. Hansen, a former principal at Blackstone, has commissioned numerous reports for large-scale acquisitions. Biltoft, on the other hand, spent seven years at BCG leading similar projects.

Since its launch in October, DiligenceSquared has already completed several projects for leading private equity firms, thanks to the industry experience of its founders.

Significant Financial Backing

DiligenceSquared's initial traction convinced Damir Becirovic, a former partner at Index Ventures, to lead a $5 million funding round through his new venture capital firm, Relentless.

Instead of relying on costly management consultants, the startup employs AI voice agents to conduct interviews with clients of the companies targeted by private equity firms.

A Differentiated Approach

DiligenceSquared draws inspiration from the AI interview model used by startups like Keplar, Outset, and Listen Labs. The latter raised $69 million in January, reaching a valuation of $500 million. However, Hansen and Biltoft emphasize that their due diligence process and the results obtained fundamentally differ from the consumer research conducted by these startups.

Private equity firms can spend between $500,000 and $1 million for firms like McKinsey, Bain, or BCG to conduct interviews with dozens of corporate clients, including senior executives, and produce detailed 200-page reports. To ensure the quality of the analysis, DiligenceSquared incorporates senior human consultants who verify the accuracy and business insights of the final results.

Thanks to AI, which handles much of the preparatory work, the startup claims it can provide this analysis for just $50,000.

Broader Access to Insights

“We are making these valuable insights, once reserved for major decisions, more accessible,” says Hansen. With this reduced cost, private equity firms are now more inclined to engage DiligenceSquared in the early stages of the process, well before they have a strong conviction about a transaction.

Market Competition

DiligenceSquared is not alone in this niche. Bridgetown Research, its main competitor, raised $19 million in a Series A co-led by Accel and Lightspeed in February 2026.

In addition to Hansen and Biltoft, DiligenceSquared was co-founded by Harshil Rastogi, a former Google engineer.