In the fast-paced world of private equity (PE), where split-second decisions can make or break multi-million-dollar deals, time is of the essence.
That’s why London-based startup Capsa AI is emerging as a key player, aiming to transform the labor-intensive due diligence process with artificial intelligence (AI).
In just a few months since its founding, the Kings Cross-based firm has raised £1.7 million in seed funding, and its technology is already helping major PE firms streamline operations.
But what exactly is Capsa AI, and why is it so crucial for private equity?
Private equity is notorious for its complex and time-consuming processes, with compliance tasks often requiring significant manual effort.
Capsa AI’s goal is to automate many of these tasks, such as creating company profiles, consolidating financial data, and reviewing contracts.
These tasks are essential but often tedious, and PE investors can spend up to 25% of their time on them.
By leveraging AI, Capsa AI eliminates much of the manual labor involved, allowing investors to focus on the more strategic aspects of their work—such as making investment decisions that maximize returns.
In practical terms, Capsa AI is designed to reduce the due diligence time by 20%, which is no small feat.
Due diligence—the process of thoroughly vetting a company before investment—can take weeks or even months.
Cutting this time by a fifth not only accelerates deal-making but also allows firms to evaluate more deals, increasing their chances of finding high-potential investments.
A global footprint in just months
Since its inception, Capsa AI has made impressive strides. The company’s AI-powered platform is already serving PE firms that collectively manage over £30 billion in assets under management (AUM) across the US, UK, and Germany.
That scale of influence is remarkable for a startup that was only founded eight months ago.
Its rapid success can be attributed to its deep understanding of the private equity sector.
Co-founders Danyal Özdüzenciler and Callum Downie bring years of industry experience to the table.
Özdüzenciler spent over six years in private equity and investment banking, working at firms like Citi, Deutsche Bank, and AEA Investors.
This insider knowledge allowed them to design a product that meets the specific needs of PE professionals.
Capsa AI doesn’t just reduce due diligence time—it also enhances operational efficiency by aggregating data from both external and internal sources, offering actionable insights in minutes.
The platform’s success is reflected in its 90% customer satisfaction rate, which indicates that it’s not only delivering on its promises but exceeding expectations.
Backing from leading investors
Capsa AI’s potential hasn’t gone unnoticed. The company recently closed a £1.7 million seed funding round, led by Outward VC and joined by other investors like Cornerstone VC, Antler, and fintech angel Chris Adelsbach.
Antler, one of the most active early-stage venture capital investors globally, has backed the startup from the very beginning, helping it grow into a revenue-generating platform within months.
Sanchit Dhote, Principal at Outward VC, highlighted the increasing complexity of private markets, stating that the volume of data for due diligence has grown exponentially over the last decade.
In his view, Capsa AI is leading the adoption of AI in the PE industry, providing essential infrastructure for managing private assets.
Given the rapid growth of private markets, which have seen AUM increase dramatically over the past decade, this infrastructure will become increasingly vital for PE firms aiming to stay competitive.
The automation of due diligence and compliance tasks is just the tip of the iceberg when it comes to AI’s transformative potential in private equity.
Capsa AI is positioning itself as a key player in this space by offering tools that accelerate decision-making, improve collaboration and knowledge sharing within firms.
This is especially important in an industry where informed decision-making is everything.
Moreover, Capsa AI’s technology enables private equity funds to leverage historical deal data, helping firms make smarter investment decisions based on past performance and trends.
By doing so, Capsa AI isn’t just reducing the workload of PE professionals—it’s empowering them to be more strategic, and in turn, more profitable.
Looking ahead
As the company moves forward, it has the backing of a highly experienced leadership team and a robust network of investors.
For now, Capsa AI is a startup, but if its early achievements are anything to go by, it could very well become a mainstay in the private equity sector—revolutionizing how deals are made and money is managed in an industry that thrives on efficiency and insight.
To sum it up, Capsa AI is a good tech solution; it has the potential to actively reshape private equity by harnessing the power of AI.
And with private equity firms increasingly looking for ways to improve productivity, it’s clear that Capsa AI is here to stay, we wish them good luck.