Understanding the Innovation
DiligenceSquared is a startup that aims to transform the private equity (PE) due diligence process. It offers high-quality commercial research using AI, significantly reducing costs compared to traditional consulting firms. Co-founders Frederik Hansen and Søren Biltoft have extensive backgrounds in private equity and consulting, which they leverage to provide valuable insights to PE firms. Their approach allows firms to access detailed market analysis earlier in the deal-making process, making it more efficient and less risky.
Key Highlights
- DiligenceSquared provides consultancy-quality research for just $50,000, compared to $500,000 to $1 million for traditional firms like McKinsey or Bain.
- The startup utilizes AI voice agents to interview customers of target companies, streamlining the data collection process.
- Senior human consultants verify the AI-generated insights to ensure quality and accuracy.
- The company has gained traction since its launch in October 2025, completing multiple projects for major PE firms and securing a $5 million seed investment led by Damir Becirovic.
Broader Implications
DiligenceSquared represents a significant shift in how private equity firms conduct due diligence. By making high-quality insights more accessible and affordable, it empowers firms to make informed decisions earlier in the acquisition process. This innovation not only reduces costs but also enhances the chances of successful deals. As the market evolves, DiligenceSquared and its competitors are reshaping the landscape of private equity research, ultimately benefiting investors and companies alike.
