Revolutionizing M&A Research: DiligenceSquared’s AI Voice Agents Slash Costs and Time
The traditional merger and acquisition (M&A) process is often a labyrinth of time-consuming and costly procedures, even for the most resourceful private equity (PE) firms. Beyond the extensive hours dedicated to engaging with senior executives of potential acquisition targets and constructing intricate financial models, these firms typically invest millions in external advisors—accountants, legal experts, and management consultants—to conduct comprehensive commercial research.
A significant drawback of this approach is the financial risk involved; if a deal doesn’t materialize, the substantial fees paid to these external advisors are non-recoverable. Consequently, PE firms tend to delay the engagement of high-cost consultants from prestigious firms like McKinsey, Boston Consulting Group (BCG), or Bain & Company until they have a high degree of confidence in the potential deal.
Enter DiligenceSquared, a forward-thinking startup from Y Combinator’s Fall 2025 cohort, which is leveraging artificial intelligence (AI) to democratize access to high-quality commercial research at a fraction of the traditional cost.
Founders with Deep Industry Roots
DiligenceSquared was co-founded by Frederik Hansen and Søren Biltoft, both of whom bring extensive experience in private equity due diligence. Hansen, a former principal at Blackstone, has firsthand experience commissioning detailed reports for multi-billion-dollar acquisitions. Biltoft, on the other hand, spent seven years at BCG’s private equity practice, leading numerous diligence initiatives.
Since its inception in October, the duo’s industry acumen has propelled DiligenceSquared to successfully complete multiple projects for some of the world’s largest PE firms and mid-market funds. This early success attracted the attention of Damir Becirovic, a former partner at Index Ventures, who led a $5 million seed funding round through his new venture capital firm, Relentless.
AI-Powered Customer Insights
Traditionally, PE firms rely on expensive management consultants to conduct in-depth interviews with customers of target companies. DiligenceSquared disrupts this norm by employing AI voice agents to perform these interviews, significantly reducing costs and time.
This innovative approach mirrors the AI-interview models utilized by consumer research startups like Keplar, Outset, and Listen Labs, the latter having raised $69 million at a $500 million valuation in January. However, Hansen and Biltoft emphasize that DiligenceSquared’s due diligence process and final deliverables are fundamentally distinct from those produced by consumer research firms.
In the conventional model, PE firms might spend between $500,000 to $1 million to engage consultants from firms like McKinsey, Bain, or BCG. These consultants would interview numerous corporate customers, including C-suite executives, and compile extensive reports—often exceeding 200 pages—that synthesize these insights with proprietary market data.
DiligenceSquared’s AI-driven methodology offers a compelling alternative. By automating the initial stages of data collection and analysis, the startup can deliver comparable insights for just $50,000. To ensure the quality and accuracy of the analysis, senior human consultants are involved in verifying the final outputs, blending AI efficiency with human expertise.
Making High-Quality Research Accessible
Hansen articulates the company’s mission succinctly: We are taking these great insights that were previously reserved for the very big decisions, and now we make them more accessible. This democratization of high-quality commercial research means that PE firms can engage DiligenceSquared’s services earlier in the deal-making process, even before they have high conviction in a potential acquisition.
This early engagement is particularly advantageous, as it allows firms to make more informed decisions without the hefty upfront costs traditionally associated with comprehensive due diligence.
Navigating a Competitive Landscape
DiligenceSquared is not alone in its quest to revolutionize the due diligence market. Bridgetown Research, a notable competitor, secured a $19 million Series A funding round co-led by Accel and Lightspeed in February 2026. Bridgetown employs AI voice agents to conduct interviews with industry experts, aiming to expedite the due diligence process.
Despite the competition, DiligenceSquared’s unique blend of AI technology and human oversight positions it as a formidable player in the industry. By offering high-quality, cost-effective, and timely commercial research, the startup is poised to redefine how private equity firms approach M&A due diligence.
The Road Ahead
As DiligenceSquared continues to refine its AI capabilities and expand its client base, the implications for the M&A landscape are profound. The ability to access top-tier commercial research without the traditional financial and time constraints could lead to more dynamic and informed deal-making processes.
Moreover, the integration of AI in due diligence reflects a broader trend of technological innovation permeating the financial sector. As AI technologies continue to evolve, their applications in areas like M&A are likely to expand, offering new tools and methodologies for firms to leverage.
In conclusion, DiligenceSquared’s innovative use of AI voice agents to conduct customer interviews and compile comprehensive commercial research represents a significant shift in the M&A due diligence paradigm. By reducing costs and increasing accessibility, the startup is not only providing value to private equity firms but also setting a precedent for the future of due diligence in the industry.
