Introduction to Bridgetown Research

Due diligence is a costly and time-consuming process, not only in the realm of investing but also for companies looking to launch new products or explore partnerships. The process of finding the right data and conducting research can take weeks and become expensive, especially when third-party agencies and consultants are involved.

The Solution: AI-Powered Due Diligence

A new AI startup, Bridgetown Research, claims to reduce the cost and speed up the due diligence process by utilizing AI agents that can collect and analyze data. Recently, the startup secured $19 million in a Series A funding round co-led by Accel and Lightspeed.

Founding and Operations

Co-founded in December 2023 by CEO Harsh Sahai, a former McKinsey employee and Amazon research scientist, Bridgetown Research has developed three types of AI agents. These agents are designed to gather information, collate and condense data, and present it in an easily readable format. The startup leverages networks of industry experts who provide insights on specific companies or sectors, partnering with these expert networks and using AI voice agents to interview experts.

How it Works

According to Sahai, the AI voice agents allow insiders to log on and have conversations at their convenience, enabling the collection of information from a larger number of mid-tenure individuals. The second set of agents then interprets the collected data using large-language models (LLMs) and tools for clustering and regression, summarizing the answers. Finally, the third set of agents uses small-language models to reproduce the interpretation in a digestible form, such as a presentation.

Efficiency and Accuracy

Bridgetown claims it can produce an initial due diligence analysis in 24 hours with inputs from hundreds of respondents. Clients can either use the startup’s agents directly or hire independent consultants to work with the agents, achieving the same quality of analysis as top consulting firms like McKinsey or Bain.

Addressing Concerns of Trust and Accuracy

While large language models can "hallucinate" or make up information, Sahai explains that Bridgetown addresses this concern through its "steerability and audibility" approach. This allows clients to review the data, trace every step taken by the agent, and manually verify the information through recorded conversations with experts.

Unique Approach

Sahai emphasizes that Bridgetown’s approach is distinct, as most platforms require users to collect information and then process it on their behalf. In contrast, Bridgetown’s AI agents gather information from multiple sources, interpret it using large language models, and employ fine-tuned models to process the data.

Competition and Customers

Although Bridgetown is not the first to tackle the challenge of making due diligence easier, with startups like Mako AI and DiligentIQ already in the space, Sahai believes that other platforms do not provide a complete solution. Bridgetown Research has secured customers in the U.K. and the U.S., including top-tier private equity and venture capital funds, consulting firms, and big corporations.