AI for PE Workflows Scores $55M+
The push to bring AI into finance is accelerating, with two startups raising big rounds to automate private equity work. Rowspace landed $50M to move AI tools from the back office to deal teams, while DiligenceSquared raised $5M to automate commercial due diligence using AI-driven expert interviews. It's a clear signal that investors are betting on AI to overhaul the investment process itself.
Rowspace's co-founders bring a potent mix of fintech and investment experience to the table; CEO Michael Manapat formerly built machine learning systems at Stripe and drove AI expansion at Notion, while COO Yibo Ling is a two-time CFO who has managed major investment portfolios. This combination of deep technical knowledge and firsthand experience with the challenges of financial data analysis was a key factor for investors. The $50 million raised by Rowspace was not a single round but a combined Seed and Series A fundraise. The Series A was co-led by venture capital giants Sequoia Capital and Emergence Capital, with Sequoia also leading the seed round. Other notable investors in the rounds included Stripe, Conviction, and Basis Set Ventures, signaling strong confidence from both the VC and corporate venture ecosystems. DiligenceSquared is directly challenging the lucrative commercial due diligence market traditionally dominated by consulting behemoths like McKinsey, BCG, and Bain. Where these firms charge $500,000 to $1 million for a single project, DiligenceSquared's AI-driven platform aims to deliver faster, traceable intelligence at a significantly lower cost. The founding team includes a former Blackstone principal, a BCG private equity practice veteran, and an ex-Google engineer. The startup's core technology utilizes AI voice agents to conduct expert interviews in multiple languages, a task that typically consumes vast amounts of analyst time. The system then automates the synthesis of thousands of data points and presents findings in an interactive interface where every conclusion can be traced back to the original interview transcripts. This addresses a major industry pain point around the "opacity" of traditional consulting work. Leading the $5 million seed round for DiligenceSquared is RELENTLESS, a venture firm founded by former Index Ventures partner Damir Becirovic. The startup also has the backing of prestigious accelerator Y Combinator, having been part of its Fall 2025 cohort, which provided crucial early-stage validation and support. This investment trend extends into the Los Angeles tech scene, where AI and fintech are major focuses for venture capital. In 2025, Los Angeles startups raised $1.4 billion across more than 85 fintech deals, with a growing emphasis on applied AI. Local investors to watch in this space include Upfront Ventures, Mucker Capital, and March Capital, who are actively funding AI-powered platforms.
