What's Happening?
DiligenceSquared, a startup from Y Combinator's Fall 2025 cohort, is leveraging AI and voice agents to make merger and acquisition (M&A) research more affordable for private equity (PE) firms. Traditionally, PE firms spend significant amounts on external
advisors like McKinsey, Bain, or BCG for comprehensive market research. DiligenceSquared offers a cost-effective alternative by using AI to conduct interviews and gather data, reducing the cost from up to $1 million to just $50,000. The startup's founders, Frederik Hansen and Søren Biltoft, bring extensive experience from Blackstone and BCG, respectively, and have already completed projects for major PE firms.
Why It's Important?
DiligenceSquared's approach could democratize access to high-quality M&A research, allowing smaller PE firms to engage in due diligence processes that were previously cost-prohibitive. By reducing reliance on expensive consultants, the startup enables firms to make informed investment decisions earlier in the process. This innovation could lead to increased efficiency and competitiveness in the private equity sector, potentially reshaping how M&A research is conducted and valued.
What's Next?
As DiligenceSquared continues to gain traction, it may face competition from other startups like Bridgetown Research, which recently raised significant funding. The success of AI-driven research models could encourage more firms to adopt similar technologies, potentially leading to a shift in the consulting industry. Additionally, the startup's growth may attract further investment and partnerships, expanding its capabilities and market reach.
