DiligenceSquared Uses AI Voice Agents to Slash M&A Research Costs

DiligenceSquared, a startup leveraging artificial intelligence and voice agents, has successfully raised a $5 million seed round to revolutionize the costly and time-consuming world of mergers and acquisitions (M&A) research. The funding, led by Damir Becirovic through his new firm Relentless, will fuel the company's mission to provide top-tier commercial diligence reports at a fraction of traditional management consulting fees.

Historically, private equity (PE) firms confront substantial expenses and extensive timelines when conducting due diligence for potential acquisitions. Millions of dollars are typically allocated to external advisors like accountants, lawyers, and management consultants for comprehensive commercial research. These reports, often running 200 pages, synthesize market data and insights from dozens of interviews with corporate customers, including C-suite executives, and can cost anywhere from $500,000 to $1 million when commissioned from firms like McKinsey, Bain, or BCG.

Because these significant costs are not recouped if a deal falls through, PE firms generally defer engaging such expensive specialists until they possess a high degree of certainty about their acquisition interest. This delay can potentially impact the speed and agility of the M&A process.

DiligenceSquared, a graduate of YC’s Fall 2025 cohort, aims to disrupt this model. Co-founded by Frederik Hansen, a former principal at Blackstone, and Søren Biltoft, who spent seven years leading diligence efforts in BCG's private equity practice, the startup combines deep industry expertise with cutting-edge AI. Their third co-founder, Harshil Rastogi, brings engineering prowess from his time at Google.

Instead of relying solely on costly human consultants for the bulk of the data collection, DiligenceSquared employs AI voice agents to conduct interviews with customers of target companies. This innovative approach significantly reduces the operational overhead associated with traditional research. The startup applies a similar AI-interview model seen in consumer research firms like Keplar, Outset, and Listen Labs, though Hansen and Biltoft emphasize that their due-diligence process and final outputs are distinctly tailored for M&A.

To uphold the quality and accuracy of their analysis, DiligenceSquared integrates senior human consultants who rigorously verify the commercial insights and overall output generated by the AI. This hybrid model allows the company to offer high-quality, comprehensive analysis for approximately $50,000 – a stark contrast to the $500,000 to $1 million charged by established consulting giants.

“We are taking these great insights that were previously reserved for the very big decisions, and now we make them more accessible,” Hansen told TechCrunch. This dramatic reduction in cost means PE firms are now far more inclined to engage DiligenceSquared earlier in their deal evaluation process, even before achieving high conviction in a potential acquisition.

Since its launch in October, DiligenceSquared has already completed multiple projects for some of the world’s largest private equity firms and mid-market funds, demonstrating significant early traction. This success proved instrumental in convincing Becirovic, formerly a partner at Index Ventures, to lead their seed funding round.

However, DiligenceSquared is not alone in its pursuit of disrupting the M&A diligence market. Competitor Bridgetown Research secured a $19 million Series A funding round in February 2026, co-led by prominent venture capital firms Accel and Lightspeed, signaling a growing interest and investment in this nascent sector.

FAQ

Q: How does DiligenceSquared make M&A research more affordable?

A: DiligenceSquared utilizes AI voice agents to conduct customer interviews, which are a costly component of traditional M&A due diligence. By automating this groundwork and combining it with expert human oversight for verification, they significantly reduce the overall cost, offering reports for about $50,000 compared to $500,000-$1 million from traditional consultants.

Q: What is the background of DiligenceSquared's founders?

A: The co-founding team brings extensive experience in the M&A and tech sectors. Frederik Hansen was a principal at Blackstone, while Søren Biltoft led diligence efforts in BCG's private equity practice. Harshil Rastogi, the third co-founder, is a former Google engineer.

Q: Who led DiligenceSquared's recent funding round?

A: DiligenceSquared raised a $5 million seed round led by Damir Becirovic through his new venture capital firm, Relentless. Becirovic is a former partner at Index Ventures, bringing significant investment experience to the company's backing.