Dili - Accelerating due diligence with AI
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Revolutionizing Due Diligence: Dili's AI-Powered Approach to Faster and Smarter Investments

Are you tired of the painstakingly slow and manual process of conducting due diligence for your investment deals? Have you ever wished for a tool that could streamline this process, making it faster and more efficient? Look no further than Dili, the groundbreaking startup founded in 2023 by a team of visionary professionals with backgrounds in finance, technology, and machine learning.

In this article, we will delve into the world of Dili, the AI-powered platform that is set to revolutionize the due diligence process for capital markets. We'll explore the founders' backgrounds, the company's mission, and how Dili aims to solve the long-standing challenges of traditional due diligence.

Meet the Visionaries Behind Dili

Who are the brilliant minds driving Dili's mission?

Dili's journey begins with its three co-founders, each bringing a unique set of skills and experiences to the table:

  • Stephanie Song: As the Co-Founder and CEO of Dili, Stephanie Song's journey from Wall Street to founding a tech startup is nothing short of remarkable. Her extensive experience in finance, including roles at Coinbase, has equipped her with the insights needed to simplify the deal-making process. Stephanie is not only a finance expert but also a TikTok creator, sharing her knowledge and empowering young finance professionals.
  • Brian Fernandez: Brian, a software engineer from the Bronx, NY, with a background in Electrical and Computer Engineering, contributes his technical expertise to Dili. Having previously worked at Coinbase, Brian is passionate about both coding and art, striking a balance between his professional and personal pursuits.
  • Anand Chaturvedi: Anand, the third co-founder, is a product manager and ML researcher based in New York, NY. With a track record of driving engagement growth and ML research contributions at companies like Coinbase and Apple, Anand is a driving force behind Dili's AI-powered solutions.

Together, this dynamic trio decided to tackle the inefficiencies plaguing the due diligence process in capital markets.

The Birth of Dili: Accelerating Due Diligence with AI

What is Dili, and how does it plan to revolutionize due diligence?

Dili introduces itself as the "newest analyst on your deal team," promising to transform the way due diligence is conducted. Unlike the conventional weeks-long process, Dili aims to expedite due diligence, making it possible to complete in a matter of hours.

Dili's Mission

Dili is a due diligence co-pilot platform that harnesses the power of artificial intelligence on both public and private datasets. Its mission is clear: to empower investors to make better-informed investment decisions through generative insights and analysis.

How Does Dili Work?

Dili's capabilities are truly impressive. It automates and enhances various aspects of the due diligence workflow, including:

Automated Screening: Dili can automatically screen deals, saving valuable time and resources for investors.

Comps Analysis: It generates comprehensive comparables analysis, a crucial element of due diligence.

Identifying Deal Killers: Dili helps in early detection of potential deal-breaking issues, minimizing risks.

Due Diligence Request List Management: Managing the often extensive due diligence request list process becomes more efficient with Dili.

Searching Across Firm's Deals: It enables users to search across their firm's entire database of deals, facilitating knowledge sharing within the organization.

Crafting Investment Deal Materials: Dili can assist in creating investment deal materials, streamlining the documentation process.

The Problem with Traditional Due Diligence

Why is there a need for Dili in the first place?

Traditional due diligence is a cumbersome and time-consuming process that has plagued the world of finance for years. Stephanie Song, one of Dili's co-founders, experienced this firsthand during her career in investment banking and venture capital. The key issues with traditional due diligence include:

Manual Tasks: Due diligence involves hours of manual tasks, including reading through company datarooms, gathering data from internal and external sources, and preparing detailed memos.

Time-Consuming: The traditional process can take weeks or even months, causing delays in deal-making.

Limited Deal Volume: Investors can only evaluate a limited number of deals each year due to the time-intensive nature of due diligence.

Risk of Oversight: The manual process increases the risk of overlooking critical information, potentially leading to poor investment decisions.

Inefficiency: Inefficient due diligence can result in missed opportunities and increased costs.

Dili aims to address these challenges head-on by introducing AI-powered automation and insights into the due diligence process.

The Dili Solution: Making Better Investment Decisions

How does Dili plan to revolutionize the world of due diligence?

Dili's solution is rooted in the power of Language Model Machines (LLMs) and comprehensive data integration. Here's how Dili plans to make a difference:

LLM-Powered Insights: Dili utilizes LLMs to generate insights and analyses for investors. These models analyze three primary sources of data: the dataroom from the company under due diligence, a custom-built structured internal knowledge database, and data integrations from external partners.

Data-Driven Due Diligence: Dili's approach enhances the quality of due diligence by automating the most manual aspects of the process. This results in a 5x increase in speed, enabling investors to work more efficiently.

Instant Understanding: Imagine a new deal lands on your desk. Dili helps you instantly understand the information in the dataroom, identify anomalies or red flags, and calculate financial metrics.

Comprehensive Comparables: When proceeding with a deal, Dili searches your firm's internal knowledge base and external sources to provide comprehensive comparables analysis and dashboard metrics.

Effortless Investment Memos: As you craft an investment memo or deal packet, Dili can create a first-cut version in minutes, saving you days of work.

Transforming the Workflow for PE & VC Firms

How does Dili benefit private equity (PE) and venture capital (VC) firms?

Dili's impact on PE and VC firms is profound, offering a range of benefits:

Increased Deal Volume: PE and VC firms can conduct due diligence on a significantly higher number of companies each year, expanding their investment opportunities.

Early Red Flag Detection: Dili's AI capabilities can catch red flags early in the due diligence process, potentially saving millions by avoiding risky investments.

Comprehensive Knowledge Base: Firms can leverage Dili to search through a database of every company they've encountered, facilitating better comparables analysis and informed decision-making.

AI-Enhanced Insights: Dili provides AI-enhanced insights, ensuring that investment decisions are data-driven and well-informed.

Encode Your Expertise for Precision Analysis

Dili empowers firms to encode their domain expertise directly into its Language Learning Models (LLMs). By creating tailored instructions, users can fine-tune Dili’s outputs to align with their specific deal processes. The platform allows for iterative refinements, enabling instant feedback to ensure accuracy and relevance. This capability ensures that Dili grows with your firm’s unique knowledge and processes.

Catching Errors Humans Miss

Human error is a natural part of any diligence process, but Dili takes reliability to the next level. The platform has consistently identified and corrected critical errors that might have been overlooked in manual reviews. For example, in one instance, Dili flagged errors in a $100 million deal that even a third-party legal team had missed, highlighting its indispensable value in high-stakes transactions.

Deploy Dili Instantly: A Seamless Setup

Getting started with Dili is fast and intuitive. Firms begin by entering their key metrics, questions, and risk factors into the system. From there, Dili delivers instant reports and flags for every deal, ensuring no critical detail goes unnoticed. The platform also supports creating custom workflows to streamline tasks such as document extraction, checklist completion, audit report generation, and risk identification, making it a versatile tool for deal-making professionals.

Endorsements from Industry Leaders

Dili has garnered high praise from leaders across finance sectors. Garry Tan, CEO and President of Y Combinator, described the platform as "magical," noting its ability to summarize complex data room information in minutes—work that would traditionally take months. Rodrigo Ko, Head of Due Diligence at Republic U.S. Markets, highlighted how Dili reduced hundreds of hours of manual review to mere moments. These testimonials underscore Dili's transformative impact on due diligence workflows.

Tailored Solutions Across Domains

Dili is more than just a general-purpose tool—it offers targeted solutions for specific deal types:

  • Real Estate Private Equity: Automate loan and lease abstractions, screen offering memorandums, and write AI-generated memos.
  • Tax Credit Diligence: Ensure precision in audits and risk assessments for tax credit transfers, verifying invoices and reports with unparalleled accuracy.
  • Venture Capital: Manage deal risks, track portfolio metrics, and anticipate funding needs while keeping Limited Partners informed.

Advanced Document Handling and Insights

Dili handles all types of documents, including tabular data like spreadsheets, a feature where many AI tools falter. It can extract key terms and metrics instantly while conducting intelligent searches across a firm’s document repository. By mirroring user workflows, Dili ensures smooth integration into existing processes while leveraging AI agents that know when to flag potential issues.

A Future Built on Reliable Automation

As Dili continues to expand its capabilities, its commitment to reliability and precision sets it apart. By reducing risk and accelerating the pace of due diligence, Dili enables firms to focus on strategic decision-making rather than time-consuming manual reviews. In the ever-competitive world of finance, tools like Dili are not just a convenience—they are a necessity for staying ahead.

Conclusion: The Future of Due Diligence

Is Dili the future of due diligence in capital markets?

In the world of finance, where time is money, Dili is poised to be a game-changer. By automating and enhancing the due diligence process, Dili empowers investors to make faster, more informed decisions, ultimately leading to more successful deals.

As Dili continues to evolve and refine its AI-powered platform, it holds the potential to transform the landscape of capital markets. Say goodbye to weeks of manual labor and hello to a future where due diligence is completed in hours, not weeks, thanks to Dili's innovative approach.

In conclusion, Dili is not just a startup; it's a vision for a more efficient, data-driven, and successful future in the world of finance. With its talented team and groundbreaking technology, Dili is set to make its mark on the industry, forever changing the way we approach due diligence.