DiligenceSquared uses AI, voice agents to make M&A research affordable

A emblematic merger-and-acquisition process is clip consuming and expensive, adjacent for the largest, well-staffed backstage equity firms. In summation to spending countless hours gathering with elder executives of imaginable targets and modeling fiscal outcomes, these groups walk millions of dollars connected outer advisers: accountants, lawyers, and absorption consultants.

Since expenses for outer advisers are not reimbursed if a woody falls through, PE firms hold until they are definite of their involvement earlier engaging costly specialists specified arsenic consultants from McKinsey, BCG, oregon Bain to execute extended commercialized probe connected the marketplace and the people company.

DiligenceSquared, a startup that was portion of YC’s autumn 2025 cohort, says that with the assistance of AI, it tin supply top-tier consultancy-quality commercialized probe astatine a fraction of the accepted cost.

The startup’s co-founders, Frederik Hansen and Søren Biltoft, person heavy expertise successful backstage equity owed diligence. Hansen was formerly a main astatine Blackstone, wherever helium commissioned these reports for aggregate billion-dollar buyouts. Meanwhile, Biltoft spent 7 years successful BCG’s backstage equity signifier starring these types of diligence efforts.  

Since launching successful October, Hansen’s and Biltoft’s manufacture acquisition has helped DiligenceSquared implicit aggregate projects for respective of the world’s largest PE firms and mid-market funds, Hansen tells TechCrunch.

That aboriginal traction convinced Damir Becirovic, a erstwhile Index Ventures partner, to pb DiligenceSquared’s $5 cardinal effect circular retired of his caller VC firm, Relentless.

Instead of relying connected costly absorption consultants, the startup uses AI dependable agents to behaviour interviews with customers of the companies the PE firms are considering buying.

DiligenceSquared is applying the aforesaid AI-interview exemplary seen successful user probe startups similar Keplar, Outset, and ListenLabs, which successful January raised $69 cardinal astatine a $500 cardinal valuation. But Hansen and Biltoft reason that their owed diligence process and last outputs are fundamentally antithetic from the user probe produced by these startups.

PE firms tin wage $500,000 to $1 cardinal for McKinsey, Bain, oregon BCG to interrogation dozens of firm customers, including C-suite executives, and nutrient 200-page reports synthesizing those insights with proprietary marketplace data, Hansen said. To guarantee the prime of the analysis, DiligenceSquared involves elder quality consultants who verify the accuracy and commercialized insights of the last output.

Since AI is doing a batch of the groundwork, the startup claims it tin supply the investigation for conscionable $50,000.

“We are taking these large insights that were antecedently reserved for the precise large decisions, and present we marque them much accessible,” Hansen said. Because of the little terms point, PE firms are present acold much consenting to prosecute DiligenceSquared earlier successful the process, good earlier they person precocious condemnation successful a deal.

DiligenceSquared isn’t the lone institution trying to disrupt the diligence market. Its main competitor, Bridgetown Research, raised a $19 cardinal Series A co-led by Accel and Lightspeed successful February 2026.

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