DiligenceSquared is a newish company out of YC’s fall 2025 startup cohort. As such, it is revolutionizing the state of the art in mergers and acquisitions (M&A) research. By applying an AI-interview model, the company aims to provide consultancy-quality commercial research at a fraction of the cost charged by traditional firms. Industry veterans Frederik Hansen, Søren Biltoft, and Harshil Rastogi are the founders of DiligenceSquared. In doing so, they’re making huge waves in an industry traditionally controlled by the likes of McKinsey, Bain, and BCG.
That’s likely due in part to the fact that the hyperlocal firm recently raised $5 million in a seed funding round. This round was led by Damir Becirovic, ex–Index Ventures partner, now with his new venture capital firm Relentless. This investment will help DiligenceSquared expand its innovative approach, which leverages AI technology similar to models used by consumer research startups such as Keplar and Outset.
DiligenceSquared’s goal is to democratize access to high-quality, rigorously conducted research that had previously only been available for big-ticket decisions. Traditional consultancy firms do not work for less than $500,000-$1 million worth of similar services. This high cost serves as a critical barrier for most PE firms. DiligenceSquared’s model offers these firms opportunities to participate earlier in the research process, which can result in more informed investment decisions.
Frederik Hansen, who previously served as a principal at Blackstone, highlights the company’s mission:
“We are taking these great insights that were previously reserved for the very big decisions, and now we make them more accessible.” – Frederik Hansen
Additionally, Søren Biltoft, who led diligence on over $100B private equity deals during his seven years with BCG’s private equity practice. Alongside him, Harshil Rastogi, a former Google engineer, brings his technical prowess to the table as cofounder. The collaborative team has produced even more worthy projects. They’ve been involved with transactions for the world’s largest private equity firms down to mid-market funds of various stripes.
DiligenceSquared’s AI-interview model makes it truly stand out from its competitors in the consumer research space. In January, ListenLabs raised $69 million and hit a $500 million valuation. DiligenceSquared focuses on delivering tailored, actionable intelligence, uniquely tailored for M&A scenarios. This specialization allows the startup to better serve the unique needs of private equity firms. It provides them with smart, efficient, and cost-effective research solutions.
The competitive landscape is getting smart and fast as the other players step up into this slice of turf. Human infrastructure Bridgetown Research recently raised a $19 million Series A funding round co-led by Accel and Lightspeed in February 2026. DiligenceSquared’s focus on affordability and quality positions it well to carve out a niche in a rapidly evolving market.