Key Takeaway
Dili, led by Stephanie Song, is at the forefront of revolutionizing due diligence in the investment industry through the innovative use of AI, aiming to enhance efficiency and decision-making for private equity and VC firms.
Stephanie Song, a former member of Coinbase's corporate development and ventures team, has teamed up with ex-colleagues Brian Fernandez and Anand Chaturvedi to launch Dili. This platform aims to automate key investment due diligence and portfolio management steps for private equity and VC firms using AI.
Dili's Funding and Unique Approach
Dili, a Y Combinator graduate, has secured $3.6 million in venture funding from various backers, including Allianz Strategic Investments and Rebel Fund. Song emphasizes that Dili utilizes "first-of-its-kind" technology, delivering high accuracy on specific tasks such as extracting financial metrics from large unstructured documents.
The Role of AI in Due Diligence
Gartner predicts that by 2025, over 75% of VC and early-stage investor executive reviews will be informed using AI and data analytics. While Dili is not the first to apply AI to due diligence, it leverages GenAI, particularly large language models akin to OpenAI’s ChatGPT, to streamline investor workflows.
Challenges and Future Prospects
Despite the potential of AI in due diligence, concerns about accuracy and biases persist. Dili is working to address these issues by fine-tuning its models and ensuring that private customer data isn't used to train them. The platform also plans to offer a way for funds to create their own models trained on proprietary, offline fund data.
