Why we invested in Capsa AI: an AI operating system for private equity professionals

Accelerating due diligence and deepening insights - an AI operating system for private equity professionals

Why we invested in Capsa AI: an AI operating system for private equity professionals

A new era for private equity

As private equity firms navigate a rapidly evolving landscape, the sector is at an inflection point, embracing digital transformation to overcome inefficiencies in traditional due diligence processes. AI is providing highly focused solutions to serve this demand.

Currently, investment professionals dedicate a staggering 25% of their time to repetitive, low-skill due diligence tasks, leading to an annual cost of £50k per investor. Recognising this challenge, Capsa AI emerges as a pivotal solution.

Seasoned private equity investor, board member, advisor & angel investor, Martina Pfeifer, who has invested in Capsa AI, comments: “AI is revolutionising private equity by enhancing data analysis and due diligence, speeding up the identification of investment opportunities with precision. It automates routine tasks, allowing professionals to focus on strategy, improving efficiency and returns. This integration boosts operational capabilities and drives innovation, keeping firms competitive.”

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Capsa AI: Transforming due diligence and driving optimisation in the private equity industry

Co-founders Danyal Özdüzenciler and Callum Downie have joined forces to transform the due diligence process within private equity firms.

The platform is tailored to meet the industry’s unique demands including features such as financial data extraction, company profile creation, and red flag report generation, while ensuring the highest levels of data security and deal-specific user access control. By seamlessly integrating PE-specific external and internal data sources, Capsa AI provides actionable intelligence within minutes, supporting its customers to i) accelerate their due diligence, ii) deepen insights, and iii) drive increased fund returns.

Capsa AI assists PE funds in aggregating and structuring the data used for their investment decisions, enabling them to leverage top-tier commercial, open-source, and proprietary AI models from Capsa AI within their operations.

Customers using Capsa to support their due diligence process reported an average due diligence time saving of 20%, and went on to give a 90% customer satisfaction score. All of which was driven by product enhancements that allowed users to tap into additional due diligence use cases — from initial document screening and financial data extraction to legal analysis.

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Unfair founder-market fit to capitalise on this market opportunity

Danyal, the CEO, brings over six years of experience in private equity and investment banking from esteemed firms such as AEA Investors, Citi, and Deutsche Bank. His hands-on experience with over 50 due diligence processes provides him with a profound understanding of the industry's challenges and needs.

Meanwhile, Callum, the CTO, offers six years of specialised knowledge in machine learning and AI, with a track record of successful projects in security threat detection, retail theft prevention, and workflow automation. In his previous role, he used AI to reduce his team’s annotation costs by 50%, underscoring his capability to deliver impactful technological solutions.

Together, Danyal’s industry insight and Callum’s technical prowess make the Capsa AI team uniquely positioned to drive meaningful advancements in private equity due diligence.

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Antler’s investment hypothesis

Since Antler invested in Capsa AI as their day zero investor, we have seen Danyal and Callum make tremendous progress.

Only four weeks after entering Antler’s residency in the UK, Capsa launched its product with PE funds managing over $9 billion. Five months later, the company is already revenue-generating, serving leading PE funds managing over $30 billion across the US, UK, and Germany.

We have been impressed with the Capsa AI team from the beginning. They are an exceptional duo, leveraging their deep expertise and complementary skills. With Danyal's extensive private equity experience and Callum's advanced AI skills, Capsa AI is uniquely positioned to transform due diligence in the private capital sector, driving deeper insights and improved returns.

We are excited to see Capsa AI enter its next stage of growth as they continue to deliver further productivity gains for private equity firms across the world.

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