YC-backed startup says it can deliver consultancy-grade due diligence for $50K instead of the $500K–$1M typically charged by firms like McKinsey or BCG.
Private equity firms spend millions of dollars and months of work researching potential acquisitions. A new startup, DiligenceSquared, believes AI can dramatically cut both.
The Y Combinator Fall 2025–backed company says its platform uses AI voice agents to conduct customer interviews and market research, producing commercial due diligence reports at a fraction of traditional consulting costs.
Instead of paying $500,000 to $1 million for research from consulting giants like McKinsey, Bain, or BCG, DiligenceSquared claims it can deliver similar analysis for about $50,000.
For PE firms evaluating dozens of potential deals each year, the cost difference could reshape how early research gets done.
Why M&A Research Is So Expensive
Traditional mergers-and-acquisitions (M&A) due diligence requires extensive market analysis.
Private equity firms typically hire top consulting firms to:
- Interview corporate customers, including C-suite executives
- Analyze industry dynamics and competition
- Compile 200-page reports combining interviews with proprietary market data
These studies often cost hundreds of thousands of dollars and are commissioned only once investors are confident about pursuing a deal.
There’s a major reason for that caution.
- Consulting costs aren’t reimbursed if a deal falls apart.
As a result, PE firms frequently delay commissioning research until late in the investment process, limiting early insights.
AI Voice Agents Conduct the Interviews
DiligenceSquared replaces much of that process with AI-powered voice agents that conduct structured interviews with customers of potential acquisition targets.
These agents gather market feedback and insights from industry stakeholders and corporate clients.
Human consultants still remain part of the process.
- Senior analysts review interview results
- Experts verify insights and conclusions
- Final reports are quality-checked before delivery
The model blends AI-driven data collection with human validation, aiming to match the credibility of traditional consulting outputs.
Think of it as automating the fieldwork while keeping experienced consultants in charge of the conclusions.
Founders Bring Private Equity Experience
The startup’s founders come directly from the industries they’re trying to disrupt.
- Frederik Hansen, formerly a principal at Blackstone, regularly commissioned due diligence studies for multi-billion-dollar buyouts.
- Søren Biltoft spent seven years at BCG leading similar commercial diligence projects.
- Harshil Rastogi, a former Google engineer, built the technical foundation behind the AI platform.
Their backgrounds helped the startup secure early customers quickly.
Since launching in October 2025, DiligenceSquared says it has already completed multiple projects for some of the world’s largest private equity firms and mid-market funds.
Investors See Early Momentum
That traction convinced Damir Becirovic, formerly a partner at Index Ventures, to lead the startup’s $5 million seed round through his new VC firm, Relentless.
The bet reflects growing investor confidence in AI-powered research and consulting automation.
The model mirrors a broader trend seen in AI-driven consumer research startups such as:
- Keplar
- Outset
- Listen Labs
Listen Labs alone raised $69 million earlier this year at a $500 million valuation, highlighting investor appetite for AI-led research tools.
Competition Is Heating Up
DiligenceSquared is not alone in targeting the private equity diligence market.
Its closest rival, Bridgetown Research, raised a $19 million Series A in February 2026, co-led by Accel and Lightspeed.
Both startups are betting that AI can automate the most labor-intensive part of consulting work: collecting and synthesizing market intelligence.
Making Elite Research Accessible Earlier
For Hansen, the goal is simple: democratize insights previously reserved for the biggest deals.
“We are taking these great insights that were previously reserved for the very big decisions, and now we make them more accessible,” Hansen said.
Because the research is cheaper, PE firms can now engage earlier in the deal process, exploring potential investments before committing serious capital.
If the model works at scale, the impact could be significant.
In an industry where information often determines billion-dollar outcomes, cheaper research could fundamentally change how deals get evaluated — and how quickly they move.
TL;DR:
YC startup DiligenceSquared uses AI voice agents to conduct market interviews and produce M&A due diligence reports. The platform claims it can deliver consultancy-grade analysis for $50K instead of $500K–$1M, attracting private equity firms and raising $5M in seed funding.
AI Summary:
- Startup DiligenceSquared uses AI voice agents for M&A research.
- Replaces expensive consulting reports costing $500K–$1M.
- Offers similar analysis for around $50K.
- Founded by ex-Blackstone, BCG, and Google leaders.
- Raised $5M seed led by Relentless.
