Private equity firms often spend huge amounts on due diligence before finalizing deals. AI M&A Research is now changing that process. Startup Diligence Squared is using artificial intelligence and voice agents to dramatically reduce the cost and time required for merger and acquisition research. By combining automation with expert analysis, the company claims it can deliver the same depth of insights at a fraction of the traditional cost.
For private equity investors, this innovation could transform how deals are evaluated and executed.
AI M&A Research Solves the Costly Due Diligence Problem
Traditional M&A due diligence is expensive and time-consuming. Private equity firms typically pay consulting firms hundreds of thousands of dollars to conduct market analysis, interview industry experts, and produce detailed reports.
In many cases, a single diligence report can cost up to $1 million. These reports include customer interviews, competitor analysis, financial modeling, and extensive documentation.
This high cost limits how many potential deals firms can explore. Many promising opportunities are never fully evaluated simply because the research process is too expensive.
That’s where AI M&A Research comes in.
Diligence Squared claims it can produce comparable reports for around $50,000, reducing the cost of due diligence by nearly ten times. By automating large parts of the research process, the startup allows private equity firms to evaluate more deals with less financial risk.
How AI M&A Research Uses Voice Agents for Insights
The technology behind Diligence Squared revolves around AI-powered voice agents. These systems can conduct structured interviews with customers, partners, and industry professionals connected to a target company.
Instead of human consultants spending weeks arranging interviews, AI voice agents automatically contact relevant sources and ask targeted questions.
These conversations gather valuable insights about:
-
Customer satisfaction
-
Product performance
-
Market competition
-
Industry trends
-
Operational challenges
After the interviews are completed, human experts review and validate the responses. This combination of automation and human oversight ensures that the final analysis remains accurate and reliable.
Using this process, the company can produce comprehensive reports that reach around 200 pages, similar to traditional consulting deliverables.
AI M&A Research Designed for Private Equity Firms
Unlike generic market research platforms, Diligence Squared focuses specifically on private equity workflows. The company blends interview insights with market data and financial analysis to produce reports tailored for investment decisions.
Private equity firms need quick answers to critical questions, such as:
-
Is the market growing fast enough?
-
Are customers satisfied with the product?
-
What risks could affect future revenue?
By delivering faster insights, AI M&A Research helps investors identify promising opportunities earlier in the deal process.
Firms can then decide whether to move forward with full due diligence or walk away before investing significant resources.
For more insights on investment trends and startups, check our guide on AI Venture Funding Surge: $189B Dominated by Three Firms.
Founders Behind the AI M&A Research Platform
The team behind Diligence Squared combines experience from finance, consulting, and technology.
-
Frederik Hansen previously worked at Blackstone, where he helped lead major buyout research reports.
-
Søren Biltoft spent seven years at BCG focusing on commercial due diligence for private equity firms.
-
Harshil Rastogi, a former Google engineer, brings deep technical expertise in artificial intelligence systems.
The founders launched the company in October 2025 after recognizing how AI could transform the traditional diligence process.
Their combined backgrounds allow them to understand both the analytical needs of investors and the technological tools needed to deliver results faster.
Funding Growth of AI M&A Research Innovation
Investors have already shown strong confidence in the startup’s approach. Diligence Squared recently raised $5 million in seed funding.
The round was led by Damir Becirovic, a former partner at Index Ventures who launched the venture firm Relentless.
This early investment signals growing interest in AI tools designed for financial analysis and dealmaking. As venture capital increasingly flows into AI-powered enterprise tools, platforms like Diligence Squared are attracting attention from top investors.
You can learn more about startup acceleration programs that support companies like this at Y Combinator.
Why AI M&A Research Improves Deal Efficiency
The biggest advantage of AI-driven research is speed. Traditional consulting projects can take weeks or even months to complete.
In contrast, automated interview systems and data processing tools allow reports to be generated much faster.
This efficiency provides several benefits:
-
Lower costs for investors
-
Faster deal evaluation
-
More deals analyzed simultaneously
-
Earlier detection of risky investments
According to Hansen, many firms now engage the company earlier in the deal pipeline. Instead of spending large sums only on final diligence, investors can run preliminary analyses quickly.
This reduces the risk of spending months exploring deals that ultimately fail.
Competition in the AI M&A Research Market
The space for AI-powered due diligence is becoming increasingly competitive.
One notable competitor is Bridgetown Research, which recently raised $19 million to expand its AI research platform. Several startups are now experimenting with automated interviews, AI-driven data analysis, and digital consulting tools.
Despite the competition, Diligence Squared believes its hybrid approach—combining AI automation with human verification gives it an edge.
Additionally, the startup participated in Y Combinator’s Fall 2025 cohort, gaining access to a powerful network of investors, mentors, and enterprise partners.
The Future of AI M&A Research in Finance
Artificial intelligence is already transforming industries from healthcare to marketing. Now, finance and dealmaking are experiencing a similar shift.
As tools like AI M&A Research become more advanced, private equity firms will likely rely on automation for many early-stage evaluations.
This change could democratize the investment landscape.
Smaller funds that previously couldn’t afford expensive consulting reports may now gain access to sophisticated research tools. That means more competition, more deals evaluated, and potentially faster transactions.
Over time, AI-powered analysis could become a standard component of every major acquisition.
Conclusion: Why AI M&A Research Matters
High research costs have long been a barrier in the mergers and acquisitions industry. Traditional consulting models make due diligence slow, expensive, and difficult to scale.
Diligence Squared is attempting to change that with AI M&A Research, combining voice agents, automation, and human expertise to deliver faster and more affordable insights.
If the model continues to prove reliable, it could redefine how private equity firms evaluate deals.
In a world where information drives investment decisions, smarter research tools may become one of the most valuable competitive advantages in finance.
