Dili: Artificial Intelligence Platform For Investment Diligence Process Automatically

Tried, Artificial Intelligence platform for Automation of Investment Diligence Process (photo: x @ajh3_)

JAKARTA - Stephanie Song, who previously worked in the company development team and ventures in Coinbase, is often frustrated with the volume of due diligence tasks that must be completed by her and her team every day.

"The analysis of burning oil at midnight works hundreds of hours doing work that no one wants to do," Song told TechCrunch in an email interview. "At the same time, funds are channeling less capital and looking for ways to make their team more efficient while reducing operational costs."

Inspired to find a better way, Song joined Brian Fernandez and Anand Chaturvedi, two former co-workers at Coinbase, to launch Dili (don't waste with the capital Timor Leste), a platform seeking to automate key measures in due diligence investments and portfolio management for venture capital companies and private equity using artificial intelligence.

Dili, a graduate of Y Combinator, has raised $3.6 million in venture funding to date from supporters including Allianz Strategic Investments, Rebel Fund, Singularity Capital, Corenest, Decacorn, Pioneer Fund, NVO Capital, Amino Capital, Rocketship VC, Hi2 Ventures, Gaingels, and Hyper Ventures.

"[AI] affects all parts of the investment fund, from analysts to partners and back-office functions," Song said. "Professional investments in funds seek different advantages in decision making, and can now use their data wealth to combine their understanding of the deal with how it fits into their funds... Dili has a unique opportunity to emerge as a solution to funds in a harsh macro environment."

Song tidak salah tentang dana mencari keungguhan atau setiap cara baru yang menjanji untuk mengurangi risiko investasi, untuk masalah itu. Investor modal venture dilaporkan memiliki 311 miliar dolar AS dalam kas yang belum dihabiskan, dan tahun lalu mengumpulkan total terendah 67 miliar dolar AS dalam tujuh tahun karena mereka semakin berhati-hati tentang usaha tahap awal.

Dili is not the first to apply artificial intelligence to the due diligence process. Gartner predicts that by 2025, more than 75% of the executive review of venture capital investors and the initial stages will be based on artificial intelligence and data analysis.

Several startups and incumbents have used artificial intelligence to filter financial documents and large amounts of data to make market comparisons and reports including Wokelo (whose customers are venture capital funds and private equity, such as Dili), Ansarada, AlphaSense, and Thomson Reuters (via its Clear Adverse Media unit).

But Song insisted that Dili used technology "first time".

"[We can] provide very high accuracy on certain tasks such as withdrawing financial metrics from large unstructured documents," he added. "We have built an indexing pipeline and customized retrieval for certain documents to provide our AI model with a high quality context."

Dili took advantage of GenAI, especially the big language model along OpenAI's ChatGPT line, to simplify investor work flow.

The platform first records historical financial data and fund investment decisions on a knowledge base, and then implements previously mentioned models to automate tasks such as parsing private company databases, handling lists of due diligence requests, and digging up underrecognizable numbers across the web.

Dili recently added support for automated comparative analysis and determination of industrial benchmarks on the backlog of a company's deal. Once funds upload their agreement data, they can compare historical and current investment opportunities in one place.

"Imagine being able to receive emails with new investment opportunities or company portfolio updates and instantaneously having a platform generating red flags of AI-generated deals, competitive analysis, industrial benchmark settings, and a summary or initial memo using your historical investment pattern of funds," Song said.

The question is, is AI Dili or is any AI really trustworthy when it comes to portfolio management?