DiligenceSquared, an AI-native platform that aims to revolutionize commercial due diligence processes for investment teams, has announced that it has closed the seed funding round in the amount of $5 million. This funding round has been led by RELENTLESS, along with Y Combinator. This new fund raise will enable the company to expand as the requirement for faster and cost-effective commercial due diligence processes is increasing among private equity firms. DiligenceSquared has developed a platform that uses artificial intelligence to automate the commercial due diligence process, which is usually manual in nature. For conventional private equity firms, it is common that they rely on consulting reports provided by large firms. This usually costs between $500,000 to $1 million. DiligenceSquared aims to revolutionize the traditional commercial due diligence process by providing in-depth results at lower costs.
With a combination of AI voice agents, data synthesis tools, and an interactive reporting feature, the platform allows investment teams to evaluate potential deals earlier in the process. The technology also includes full source traceability, meaning investors can follow the data to understand where it came from, a feature not easily replicable in traditional reporting formats.
The launch comes at a time when private equity investors are increasingly questioning the efficiency and transparency of traditional models of consulting-led due diligence. With the number of deals on the rise and competition for good opportunities becoming ever greater, investors need technology that allows them to quickly, scalably, and transparently evaluate potential acquisition opportunities. AI technology, like the platform offered by DiligenceSquared, is clearly a new option for investors looking to improve their traditional approach.
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Since its launch in October, DiligenceSquared has already worked with various private equity firms and mid-market investment funds across the United States and Europe. Together, these organizations have over $2 trillion in assets under management. This is an indication that there is significant industry interest in the use of automated diligence technology. The adoption is also an indication of the changing landscape in the investment industry, as AI is changing labor-intensive research processes that have not changed in decades.
The company was founded by Frederik Hansen, Søren Biltoft, and Harshil Rastogi, whose collective expertise includes private equity investment, consulting, and engineering large-scale AI. Frederik Hansen has six years of experience at Blackstone, where he eventually rose to the position of Principal within the private equity division. He has worked extensively with commercial due diligence reports for large buyouts. Søren Biltoft was a Principal within BCG’s Private Equity practice for seven years, where he led diligence projects for prominent private equity and hedge fund investors. Rastogi has over a decade of experience in software engineering and has worked at Google on AI projects to identify fraud, scams, and abuse within Google’s advertising ecosystem.
“Commercial due diligence hasn’t changed in decades. It’s highly standardized work, executed manually, and sold at a massive markup,” said Frederik Hansen, co-founder and CEO of DiligenceSquared. “We’re using AI to automate what is repeatable and applying human review where accuracy and judgment matter. The result is faster insights, lower cost, and a level of transparency that simply isn’t possible in static PowerPoint slides.”
Early investors believe the company is well positioned to reshape how investment firms conduct diligence in the future.
“This team brings a rare combination of deep domain expertise, technical strength, and firsthand experience purchasing and relying on traditional commercial due diligence,” said Damir Becirovic, Founding Partner at Relentless. “They understand exactly where the inefficiencies are and have built an AI-first approach that delivers speed, transparency, and rigor in a way the traditional consulting model can’t. We believe this will become the new standard for how investment teams run diligence and have integrated their product in our own processes.”
How the Platform Works
Advancements in voice-based AI technologies have made it possible to conduct dozens or even hundreds of expert interviews simultaneously, removing one of the largest bottlenecks in traditional diligence processes. DiligenceSquared’s system automates the workflow end-to-end, enabling faster insights and deeper market analysis.
The platform’s process includes:
- Research blueprint: Identifies the key market questions and analytical frameworks relevant to each investment opportunity.
- Instant expert access: Automatically sources and connects with targeted industry professionals using AI voice agents.
- Multilingual AI interviews: Conducts one-on-one conversations with customers, competitors, and market insiders without scheduling constraints.
- Human quality assurance: Senior consulting professionals review outputs to ensure accuracy and contextual insight.
- High-scale synthesis: Converts thousands of interview datapoints into actionable insights within hours rather than weeks.
- Interactive reporting: Replaces static reports with a dynamic interface where each insight links directly to its source transcript.
AI and Human Expertise Combined
While automation drives the platform’s efficiency, DiligenceSquared emphasizes a hybrid AI-plus-human model tailored for investment decision-making. Experienced project leads with consulting backgrounds review outputs and guide the analysis to ensure results meet the rigorous standards expected by private equity investors.
“Investors won’t adopt tools that are 80–90% correct,” said Søren Biltoft, co-founder and COO of DiligenceSquared. “Our model automates the heavy lifting while keeping human judgment exactly where it’s needed. It gives clients the reliability of a traditional consulting product, delivered at a fundamentally different speed and cost.”