Capsa AI Lands £1.7M Funding for AI-Powered Private Equity Solutions, 8 Months After Founding

Capsa AI, a London-based startup, is transforming how private equity (PE) firms approach due diligence through the development of an innovative AI operating system. Just eight months after its founding, the company has raised £1.7 million in Seed funding and already manages over $30 billion across the U.S., UK, and Germany. The AI-powered platform allows PE investors to delegate low-skill, manual due diligence tasks, such as creating company profiles, extracting and analyzing financial data, and reviewing customer contracts—tasks that traditionally consume around 25% of their time.

By automating these time-intensive processes, Capsa AI enhances efficiency and productivity, enabling PE firms to focus on higher-value activities. In addition to streamlining due diligence, the company plans to leverage historical deal data in the near future to help investors make more informed decisions. The funding round was led by Outward VC, a prominent UK fintech investor, with support from Cornerstone VC and existing investor Antler, Europe's most active early-stage VC. High-profile angel investors, including Chris Adelsbach and senior professionals from leading private equity firms and tech unicorns, also participated.

Danyal Özdüzenciler, co-founder of Capsa AI, expressed his excitement about the platform's potential to revolutionize one of the largest global industries. He emphasized the significant value Capsa AI is already delivering to major PE firms and is confident that the technology will transform collaboration, knowledge sharing, and decision-making across private equity and private capital markets worldwide.

Sanchit Dhote, Principal at Outward VC, underscored the significant impact Capsa AI is having on the private equity industry, particularly in terms of revolutionizing the due diligence process. He pointed out that as private markets have expanded at an unprecedented rate over the last decade, the amount of data firms need to sift through during due diligence has grown in both volume and complexity. This surge in data has made it increasingly difficult for firms to manage these tasks efficiently using traditional methods.

Dhote highlighted how Capsa AI’s platform addresses this pressing issue by leveraging advanced AI to automate and streamline many of the manual, time-consuming elements of due diligence, such as analyzing financial performance, extracting critical data from company reports, and reviewing contracts. By doing so, Capsa AI enables private equity firms to handle larger and more complex datasets with greater accuracy and speed, ultimately boosting productivity.

As the private equity landscape continues to evolve, Dhote emphasized that solutions like Capsa AI will become indispensable, offering firms the ability to not only keep pace with market growth but also to make more informed, data-driven investment decisions. This innovative approach not only improves operational efficiency but also positions private equity firms to stay competitive in an increasingly data-intensive environment.

The newly secured capital will be used to strategically expand Capsa AI’s team, with an emphasis on hiring skilled product engineers who will drive the development of new features tailored specifically for private equity investors. These enhancements aim to further streamline due diligence and investment processes. Moreover, Capsa AI plans to use the funds to deepen its market penetration by targeting key regions and sectors. This includes the continued refinement of its proprietary AI models, enabling the company to deliver even more advanced, data-driven insights that will empower investors to make better-informed decisions and optimize their workflow efficiency.