Traditional private equity due diligence, especially commercial research conducted by top consulting firms, is extremely costly and time-consuming, often running from $500,000 to $1 million per report. The startup DiligenceSquared uses AI voice agents to conduct customer interviews and perform the groundwork for this commercial research, significantly reducing the cost to around $50,000. This lower price point allows PE firms to engage in deep diligence earlier in the deal process.
The company, founded by individuals with deep PE and consulting experience, has secured $5 million in seed funding and already completed projects for major PE firms. While using a similar AI-interview model to consumer research startups, DiligenceSquared differentiates itself by focusing on the due diligence market and involving senior human consultants to verify the final analysis.
The main topics covered are the high cost of traditional PE due diligence, DiligenceSquared's AI-driven and lower-cost alternative, its founding team and early traction, and the competitive landscape it operates within.