DiligenceSquared is rebuilding the commercial due diligence workflow that private equity funds rely on before signing multi-billion dollar buyouts. Traditionally a PE fund commissions McKinsey, BCG, or Bain to spend six to ten weeks producing a 500 thousand to one million dollar PowerPoint deck assessing a target market, its competitive dynamics, and its growth outlook. DiligenceSquared automates that workflow with AI agents that conduct expert interviews, synthesize industry signals, and produce reports where every claim is linked back to source transcripts and documents, making the output fully auditable.
The pitch to deal teams is straightforward. For roughly 50 thousand dollars instead of half a million, funds get a market diligence report turned around in days rather than weeks, with the ability to drill into the underlying evidence for every conclusion. The total addressable market is large, around 10 billion dollars a year of consulting spend, and a single mega-cap PE fund can burn over 30 million dollars annually on this category. Early customers already include two of the world five largest private equity funds along with several mid-market firms.
The company was founded in 2025 by Frederik Kofoed Hansen, formerly a Principal in Blackstone Private Equity team across San Francisco, New York, and London, and Soren, a former Principal in BCG PE practice in New York. Both founders sat on opposite sides of the diligence table during their previous careers, which gives the product a sharp point of view on what dealmakers actually need. DiligenceSquared is part of Y Combinator F25 batch and raised a five million dollar seed round in March 2026 led by Damir Becirovic at Relentless with participation from Y Combinator.