DiligenceSquared Leverages AI Voice Agents to Slash M&A Due Diligence Costs by 90% for Private Equity Firms

DiligenceSquared, a innovative startup from Y Combinator's fall 2025 cohort, is revolutionizing mergers and acquisitions research with affordable AI-powered solutions.

Traditional M&A due diligence burdens private equity firms with exorbitant costs, often ranging from $500,000 to $1 million for top consultancies like McKinsey, BCG, or Bain.

Founders' Deep Industry Expertise

The company was co-founded by Frederik Hansen, formerly a principal at Blackstone, Søren Biltoft from BCG's private equity practice, and Harshil Rastogi, a former Google engineer.

Launching in October 2025, DiligenceSquared quickly secured projects from major PE firms and raised a $5 million seed round led by Relentless VC.

AI Voice Agents Transform Research

Instead of pricey human consultants, the platform deploys AI voice agents to conduct in-depth interviews with customers of potential acquisition targets.

These agents mimic high-end consumer research tools but tailor outputs specifically for commercial due diligence in M&A deals.

Human senior consultants then review AI-generated insights to ensure accuracy and depth comparable to traditional 200-page reports.

At just $50,000 per analysis, this slashes costs dramatically, making elite research accessible earlier in the deal pipeline.

PE firms now engage DiligenceSquared proactively, gaining critical market and customer insights before committing to expensive advisors.

“We are taking these great insights that were previously reserved for the very big decisions, and now we make them more accessible,” said Hansen.

While competitors like Bridgetown Research are entering the space, DiligenceSquared's YC backing and founder pedigree position it for rapid growth in the evolving AI diligence market.