Due diligence is a costly business, and not just in the realm of investing. Even for a company trying to launch a new product or explore a partnership, finding the right data and doing the research can take weeks and get very costly if they are to make an educated decision — especially when third-party agencies and consultants get involved.
A new AI startup called Bridgetown Research says it can make a dent in that cost base and speed up the process by using AI agents that can do most of the data collection and research work that goes into due diligence. And as part of this effort, the startup recently raised $19 million in a Series A round co-led by Accel and Lightspeed.
Co-founded in December 2023 by its CEO Harsh Sahai, a former McKinsey employee and research scientist at Amazon, Bridgetown Research has built three types of AI agents that it claims can gather information, collate and condense that data, and present it in an easy-to-read format.
Bridgetown is exploiting the very networks that consultants and researchers often use to gather insights: networks of industry experts who can provide insights on a particular company or sector. The startup essentially partners with these expert networks and then uses its AI voice agent to interview experts for the information the company needs to find for its clients.
“Because insiders don’t have to schedule a call with a human being, they can log on whenever and have a conversation,” Sahai said in an interview. “Instead of talking to one senior executive, you can talk to mid-tenure people, but a lot more of them … at a much higher scale.”
Bridgetown’s second set of agents then use large language models (LLMs) alongside tools for clustering and regression to interpret the data collected by the voice agents, and pass this information back to the LLMs to summarize the answers. Finally, the third set of agents uses small language models to reproduce the interpretation in a digestible form, like a presentation.
Using these agents, the startup says it can produce an initial due diligence analysis in 24 hours with inputs from hundreds of respondents.
Sahai said clients can either use Bridgetown’s agents to gather data and insights on their own, or they can hire an independent consultant or a small consulting firm to work with the agents to get the same quality of analysis as they would from firms like McKinsey or Bain.
That sounds appealing, but large language models and the AI agents built on top of them still tend to hallucinate — that is, they tend to make up information. So how is an investor to trust research reproduced by an AI agent? Sahai says the startup addresses this with its “steerability and auditability” approach.
This means, he explained, clients can review the data and trace every step the agent took to arrive at its conclusions, similar to the “reasoning” AI models out there. Additionally, the voice agents record their conversations with the experts they interview so that the information can be manually verified.
He added that the AI agents do not rely on a single data source. Instead, they gather information from multiple sources, interpret it using large language models, and then employ fine-tuned models to process the data.
“We haven’t seen our approach before,” Sahai said. “Most platforms leave it to you to collect the information you need, and then they will process it on your behalf.”
Bridgetown isn’t the first to tackle this opportunity to make due diligence easier — we already have startups like Mako AI and DiligentIQ in the space. However, Sahai thinks other platforms do not provide a complete enough solution.
Bridgetown Research has two customers in the U.K. and a dozen in the U.S. These include top-tier private equity and venture capital funds, consulting firms, and big corporations that address the M&A pipeline, Sahai said.
2 Comments
This is great news! AI has the potential to significantly reduce the time and effort required for due diligence, allowing companies to make informed decisions faster. I’m curious to know more about the specific applications of AI in the due diligence process – are there any particular areas or industries where it has shown exceptional results?
It’s encouraging to see companies like Bridgetown Research pushing the boundaries of AI in the field of due diligence. With the increasing amount of data available, leveraging AI technology can undoubtedly help in processing and analyzing information more efficiently. I wonder how this advancement will impact the role of traditional due diligence professionals – will they need to adapt their skills to work alongside AI systems?
While AI can be a powerful tool in expediting due diligence, it’s crucial to ensure that its decisions are explainable and transparent. Transparency is imperative to foster trust, especially in high-stakes situations. How does Bridgetown Research address the interpretability and explainability of their AI system, and what measures do they take to ensure its fairness and accuracy?
An additional tip for companies considering using AI in their due diligence process is to continually evaluate and update the algorithms and models to adapt to changing circumstances. This can help to avoid potential biases and ensure that the AI system remains effective and reliable. How does Bridgetown Research approach this ongoing evaluation and improvement of their AI technology?
It’s fascinating to see how AI continues to revolutionize various industries, including due diligence. With its ability to analyze vast amounts of data quickly, machine learning has the potential to uncover critical insights that may have been otherwise overlooked. How does Bridgetown Research’s AI system handle complex and nuanced information to aid in due diligence decision-making?
I’m excited to see the advancements in AI-driven due diligence! Speeding up the process will not only save time and resources but also enable companies to seize opportunities faster in an ever-changing business landscape. How does Bridgetown Research’s AI technology contribute to enhancing the overall accuracy and reliability of due diligence assessments?
This is great news! AI has the potential to revolutionize due diligence and make the process much more efficient. I’m excited to see how Bridgetown Research will utilize this funding to further develop their AI technology and help businesses in their decision-making processes.
I’m a bit skeptical about the use of AI in due diligence. While it can definitely speed up the process, how accurate and reliable is the information gathered? Human oversight and judgement are still crucial in this area, so I hope Bridgetown Research has taken that into consideration.
It’s fascinating to see how AI is being integrated into various aspects of our lives. With the rise of technology, there’s no doubt that due diligence processes will become faster and more accurate. I wonder how Bridgetown Research plans to differentiate their AI solution from other competitors in the market. Any thoughts?