DiligenceSquared Inc.

High-Level Overview

DiligenceSquared Inc. is a San Francisco-based startup founded in 2025 that provides AI-powered market due diligence solutions primarily for private equity (PE) funds and other investment firms. Their platform automates the traditionally expensive and time-consuming commercial due diligence process by using AI agents to conduct expert interviews and synthesize insights into fully auditable reports. This replaces costly consulting engagements from firms like McKinsey, BCG, and Bain, delivering about 80% of the insight at roughly 5% of the cost. The company serves large PE funds, hedge funds, and private credit investors, helping them make faster, more cost-efficient, and data-backed investment decisions. Their technology also supports portfolio companies and corporates with market intelligence for strategic initiatives such as product launches, M&A, and expansion[1][2][3].

Origin Story

DiligenceSquared was founded in 2025 by Frederik, Soren, and Harshil, who bring deep expertise from private equity, consulting, and technology backgrounds. Frederik previously purchased market research reports as a Principal at Blackstone, while Soren sold such services as a Principal at BCG. Harshil, the CTO, is a former Google software engineer with experience leading AI/ML systems. The idea emerged from their firsthand experience with the inefficiencies and high costs of traditional due diligence. Early traction includes onboarding two of the world’s five largest PE funds and several mid-market funds, demonstrating strong market validation shortly after launch[2][4][6].

Core Differentiators

• AI-Driven Automation: Uses AI agents to autonomously conduct expert interviews and synthesize insights, drastically reducing human labor and cost.
• Auditable Reports: Every claim in their reports is linked directly to source transcripts, ensuring full transparency and traceability.
• Speed and Scale: Delivers insights in days instead of weeks by parallel-processing hundreds of interviews and analyses.
• Cost Efficiency: Provides commercial due diligence at a fraction of the traditional consulting price, making early-stage diligence and smaller deals viable.
• Expertise-Backed: Founders’ backgrounds in PE, consulting, and tech ensure the product meets high standards of diligence quality.
• Client Base: Trusted by leading PE funds managing over $2.4 trillion in assets under management, indicating strong network and credibility[2][3][4].

Role in the Broader Tech Landscape

DiligenceSquared rides the growing trend of AI automation in financial services and investment decision-making, addressing a $10 billion annual market spent on commercial due diligence. The timing is critical as capital markets become more competitive and investors demand faster, more cost-effective, and verifiable insights. By replacing traditional, opaque consulting reports with transparent, AI-generated analysis, DiligenceSquared is reshaping how market intelligence is sourced and consumed. This innovation not only reduces costs but also democratizes access to high-quality due diligence, potentially accelerating deal flow and improving investment outcomes across the ecosystem[2][3][4].

Quick Take & Future Outlook

Looking ahead, DiligenceSquared is well-positioned to expand its footprint among private equity, hedge funds, and private credit investors by continuing to refine its AI capabilities and scale its expert network. Trends such as increased adoption of AI in finance, demand for auditability, and pressure to reduce costs will likely fuel their growth. Their influence may extend beyond due diligence into broader market research and strategic advisory services for portfolio companies and corporates. As AI-driven decision support becomes standard, DiligenceSquared could become a foundational tool in investment workflows, transforming how capital is allocated and risks are assessed.

This evolution ties back to their core mission: making high-quality, credible market intelligence accessible, fast, and affordable—empowering investors to make better decisions with confidence.