Bridgetown Research Raises $19M to Revolutionize Due Diligence with AI

The Rising Efficiency of AI in Due Diligence

Performing thorough due diligence represents a significant expense, extending beyond the investment sector. For businesses initiating new product launches or considering partnerships, the process of acquiring relevant data and conducting comprehensive research can be both time-consuming and financially demanding, particularly when external agencies and consultants are engaged.

Bridgetown Research: An AI-Powered Solution

Bridgetown Research, a newly established AI startup, aims to reduce these costs and accelerate the due diligence timeline. They propose leveraging AI agents to automate much of the data collection and research traditionally associated with this process. The company recently secured $19 million in Series A funding, co-led by Accel and Lightspeed, to further develop this technology.

Founded in December 2023 by CEO Harsh Sahai, formerly of McKinsey and Amazon as a research scientist, Bridgetown Research has developed three distinct types of AI agents. These agents are designed to gather information, synthesize data, and present findings in a readily understandable format.

Leveraging Expert Networks with AI

Bridgetown Research capitalizes on the same networks utilized by consultants and researchers – networks of industry specialists capable of providing valuable insights into specific companies or sectors. The startup collaborates with these expert networks, employing its AI voice agent to conduct interviews and gather the necessary information for its clients.

“The advantage lies in eliminating the need for scheduling calls with individuals,” Sahai explained. “Insiders can contribute at their convenience, and we can engage with a larger number of professionals, including those in mid-level positions, at a significantly increased scale.”

Data Processing and Presentation

The startup’s second set of agents utilizes large language models (LLMs), alongside clustering and regression tools, to analyze the data obtained by the voice agents. This processed information is then relayed back to the LLMs for summarization.

Finally, a third set of agents employs smaller language models to reproduce the interpretation in a concise and accessible manner, such as a presentation format.

Bridgetown Research asserts that this agent-driven approach can deliver an initial due diligence analysis within 24 hours, incorporating input from hundreds of respondents.

Flexible Implementation Options

Clients have the option of utilizing Bridgetown’s agents independently to gather data and insights, or they can collaborate with an independent consultant or a smaller consulting firm. This allows them to achieve a comparable level of analysis to that offered by larger firms like McKinsey or Bain.

Addressing the Risk of AI Hallucinations

A common concern with large language models and AI agents is their tendency to “hallucinate” – to generate inaccurate or fabricated information. Bridgetown Research addresses this issue through its emphasis on “steerability and auditability.”

This approach allows clients to review the underlying data and trace the agent’s reasoning process, similar to the functionality found in other “reasoning” AI models. Furthermore, the voice agents record their conversations with experts, enabling manual verification of the information gathered.

The AI agents also avoid reliance on a single data source, instead aggregating information from multiple sources, interpreting it using LLMs, and then applying fine-tuned models for data processing.

“Our methodology is unique,” Sahai stated. “Most platforms focus on processing information that you’ve already collected, whereas we handle both the data collection and the analysis.”

Competitive Landscape

While Bridgetown Research is not the first to explore AI-driven due diligence – companies like Mako AI and DiligentIQ are already operating in this space – Sahai believes that other platforms do not offer a fully comprehensive solution.

Current Client Base

Bridgetown Research currently serves two clients in the U.K. and twelve in the U.S. Its clientele includes prominent private equity and venture capital funds, consulting firms, and large corporations involved in mergers and acquisitions.

• Key Feature: AI-powered data collection and analysis.
• Funding: $19 million Series A round.
• Focus: Reducing the cost and time associated with due diligence.