DiligenceSquared is a fast-growing new startup coming out of Y Combinator’s fall 2025 batch. They are changing the entire mergers and acquisitions research ecosystem through the use of a groundbreaking, AI-based, qualitative interview approach usually used in consumer research. Frederik Hansen, a former principle at Blackstone, is the co-founder of the company. Together with Søren Biltof t, who spent seven years leading diligence efforts at BCG’s private equity practice, they intend to make first-tier consultancy-quality commercial research available at one-tenth of the historical cost.
The firm has gone on to do great work completing successful projects for several of the world’s largest private equity firms and mid-market funds. Hansen and Biltoft quickly called upon their substantial private equity due diligence experience. So, they built DiligenceSquared to provide insights that had previously been available only for high, big-picture decisions. The recruiting of a fourth co-founder, crazy thing Harshil Rastogi — a former Google engineer — gives the firm’s tech-heavy founding team even more technological chops.
DiligenceSquared’s AI-interview model represents a very different approach than common consumer research methods used by other accelerator-backed, digital-first startups such as Keplar, Outset, and ListenLabs. Most recently, ListenLabs raised $69 million at a $500 million valuation, representing just how brightly these companies have been capitalized. At the same time though, DiligenceSquared is passionate about doing quality research at a better value. This tactics-oriented strategy enables private equity firms to come in earlier in the investment cycle. Because of this, they can reach informed decisions at an earlier stage in the process.
Frederik Hansen emphasized DiligenceSquared’s mission, stating, “We are taking these great insights that were previously reserved for the very big decisions, and now we make them more accessible.”
DiligenceSquared raised $5M in its seed funding round. The round was led by Damir Becirovic, the former partner at Index Ventures and now head of Relentless. This financial support will accelerate the company’s expansion to meet continuing strong demand. It’ll fuel its market-leading innovation in the increasingly crowded financial technical advice consulting space.
The founders’ deep roots in private equity and their commitment to leveraging technology position DiligenceSquared as a formidable player in the M&A research market. Dedicated to continued growth, the firm culture encourages evaluation and ongoing improvement of their services. It delivers cost-effective, incisive research that helps investors make confident decisions in complex markets.