Making M&A Research Accessible
The intricate process of mergers and acquisitions (M&A) is notoriously time-consuming and costly, even for seasoned private equity (PE) firms with ample resources. Beyond the extensive hours spent meeting with executives and building financial models, these firms often incur millions of dollars in fees for external advisors like accountants, lawyers, and management consultants.
Since these advisor costs are typically non-reimbursable if a deal falters, PE firms tend to delay engaging expensive specialists from firms such as McKinsey, BCG, or Bain for in-depth market and target company research until they are highly confident about pursuing an acquisition. This delay can lead to missed opportunities or insufficient due diligence.
DiligenceSquared's AI-Powered Solution
DiligenceSquared, a startup that emerged from Y Combinator's Fall 2025 cohort, aims to revolutionize this landscape. Leveraging artificial intelligence, the company offers consultancy-grade commercial research at a significantly reduced cost compared to traditional methods.
The startup's co-founders, Frederik Hansen and Søren Biltoft, bring invaluable experience in PE due diligence. Hansen previously served as a principal at Blackstone, where he oversaw research for numerous multi-billion dollar buyouts. Biltoft, with seven years in BCG's private equity practice, led similar diligence efforts.
Since its launch in October, DiligenceSquared has already completed multiple projects for major global PE firms and mid-market funds, a testament to the founders' deep industry knowledge. 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 venture capital firm, Relentless.
How DiligenceSquared Works
Instead of relying on costly management consultants for interviews, DiligenceSquared employs AI-powered voice agents. These agents conduct interviews with customers of the companies under consideration for acquisition by PE firms. This innovative approach mimics the strategy used by consumer research startups like Keplar, Outset, and Listen Labs, which have seen significant funding rounds.
However, Hansen and Biltoft emphasize that DiligenceSquared's due diligence process and output differ fundamentally from consumer research. While traditional consulting firms might charge $500,000 to $1 million for similar research, including interviews with dozens of C-suite executives and extensive market data synthesis in lengthy reports, DiligenceSquared offers a more streamlined and affordable alternative.
To ensure the highest quality analysis, DiligenceSquared integrates senior human consultants who meticulously verify the accuracy and commercial insights of the AI-generated findings. By automating much of the initial data gathering through AI, the startup can provide this comprehensive analysis for as little as $50,000.
Democratizing M&A Insights
As Hansen puts it, "We are taking these great insights that were previously reserved for the very big decisions, and now we make them more accessible." The dramatically lower price point encourages PE firms to engage DiligenceSquared earlier in their deal evaluation process, even before they have developed strong conviction about a potential acquisition.
While DiligenceSquared is making waves in the diligence market, it's not without competition. Bridgetown Research, a key competitor, secured a $19 million Series A funding round in February 2026, co-led by Accel and Lightspeed.
DiligenceSquared was co-founded by Harshil Rastogi, an engineer formerly with Google, alongside Hansen and Biltoft.
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