Mergers and acquisitions can take months of research before a deal happens. Private equity firms must study markets, interview customers, and analyse financial data before buying a company.
However, this research is often very expensive. Firms usually hire large consulting companies like McKinsey & Company, Boston Consulting Group, or Bain & Company.
These consultants conduct interviews, collect market data, and prepare detailed reports. As a result, the process can cost between $500,000 and $1 million. Even worse, companies must pay these fees even if the deal does not go through.
Because of this cost, many private equity firms delay research until they are very confident about a potential acquisition.
How DiligenceSquared Uses AI to Improve M&A Research
Startup DiligenceSquared believes artificial intelligence can change this process.
The company uses AI voice agents to interview customers of companies that investors may want to acquire. These automated conversations collect valuable insights about markets, products, and customer demand.
After gathering the information, the system analyses the responses and creates research reports. Human experts then review the results to ensure accuracy.
Because AI handles most of the early work, the company says it can deliver high-quality M&A research for around $50,000, far less than traditional consulting.
The Experience Behind the DiligenceSquared Team
The founders of DiligenceSquared bring strong experience in both consulting and private equity.
Frederik Hansen previously worked at Blackstone. There, he commissioned large research reports for billion-dollar acquisitions.
Meanwhile, Søren Biltoft spent several years working in the private equity practice at Boston Consulting Group.
The third co-founder, Harshil Rastogi, previously worked as an engineer at Google.
Together, the team combined finance knowledge with AI engineering to build a new research platform.
Early traction helped the startup raise funding. Damir Becirovic, a former partner at Index Ventures, led DiligenceSquared’s $5 million seed round through his venture firm Relentless.
Since launching in late 2025, the company has already completed projects for several private equity firms and mid-market funds.
This shows that investors are becoming more interested in AI-powered market research and deal analysis.
Competition Is Growing in AI Research Startups
DiligenceSquared is not the only startup exploring AI-driven research.
For example, Bridgetown Research recently raised $19 million in Series A funding backed by major venture firms.
At the same time, other startups are building AI tools that conduct automated interviews and analyse customer feedback.
However, DiligenceSquared believes its focus on private equity due diligence gives it a unique advantage in the market.
The rise of AI tools is changing how companies gather information.
Previously, only the largest investment firms could afford deep market research. Now, AI startups are making that level of analysis more accessible.
As AI technology improves, more investors may rely on automated interviews, AI data analysis, and faster research tools.
For private equity firms, this could mean faster deals, lower costs, and better insights before making major investments.