Dili, a platform founded by former Coinbase executives Stephanie Song, Brian Fernandez, and Anand Chaturvedi, has secured $3.6 million in venture funding to automate key investment due diligence and portfolio management tasks for private equity and VC firms. Inspired by the frustration of dealing with labor-intensive due diligence tasks, the team developed Dili to streamline the process using AI.
The platform, a Y Combinator graduate, has gained support from investors such as Allianz Strategic Investments, Rebel Fund, Singularity Capital, and others. Dili aims to transform the investment landscape by applying AI to tasks that were traditionally time-consuming, enabling funds to be more efficient while reducing operating costs.
Dili leverages its proprietary technology, including large language models similar to OpenAI’s ChatGPT, to automate various due diligence tasks. It catalogs a fund’s historical financial data and investment decisions in a knowledge base and utilizes AI models for tasks such as parsing databases, handling due diligence request lists, and extracting information from the web.
![Dili](https://i0.wp.com/nosisnews.com/wp-content/uploads/2024/02/image-121.png?resize=1024%2C528&ssl=1)
![Dili](https://i0.wp.com/nosisnews.com/wp-content/uploads/2024/02/image-121.png?resize=1024%2C528&ssl=1)
The platform recently added support for automated comparable analysis and industry benchmarking, allowing funds to compare historical and current investment opportunities in one place. Dili envisions a future where its technology can be applied across the asset allocation process.
VCs reportedly have $311 billion in unspent cash, and last year raised the lowest total — $67 billion — in seven years as they grew increasingly cautious about early-stage ventures.
Despite the potential benefits, concerns about AI accuracy and biases exist in the due diligence process. Dili addresses these concerns by fine-tuning its models to improve accuracy and ensuring that private customer data is not used to train its models. The platform also plans to offer a way for funds to create their own models trained on proprietary, offline fund data.
While the AI-driven due diligence space is already evolving, with Gartner predicting increased AI usage in VC executive reviews, Dili aims to stand out with its “first-of-its-kind” technology. The platform’s success in providing efficient and reliable solutions may redefine how VC and private equity firms approach due diligence and portfolio management tasks in the future.