Reinventing Diligence: How a Growth-Stage Software fund Cut Diligence Time in Half with Raylu AI

At a Glance

Challenges

• Lengthy diligence cycles

• Overstretched deal teams needing to triage focus

• Risk of missing hidden gems or moving too slow to win

Benefits

• 3x less diligence work

• 50% faster time to conviction

• More deals won

• Human-quality analysis customized to the fund’s expertise

Objectives

A NYC-based growth-stage software investor was struggling with a resource-intensive diligence process.

After initial screening, their team often spent a full two weeks with a three-person deal team to generate intro memos, aggregate market data, and get up to speed before the management meeting—slowing critical "go or no-go" decisions. This delay often risked losing momentum on competitive opportunities.

They aimed to:

• Accelerate diligence workflows without sacrificing quality

• Optimize associate and partner time for high-potential deals

• Reduce the risk of overlooking promising opportunities

Solution

Raylu AI was deployed to automate essential pre-LOI diligence tasks, enabling quicker conviction or pass decisions with deep research:

• High Accuracy: Capturing key operating metrics and company data (99% accuracy, 96% recall) to match the firm's rigorous standards.

• Efficient Data Extraction: Reducing manual work by two-thirds compared to before—surfacing pivotal information for partner review in record time.

• Bespoke AI: Raylu AI was tailored using the firm's associate training documents to replicate their investment criteria, enabling it to analyze deals like their analysts.

“We can now run at deals so much faster. If we want to win, we can always be the fund in pole position—and if we don’t, we pass faster and get to move on to the next thing that matters.”
— Principal, NYC Growth-Stage Software Fund

Benefits

50% Faster Time to Conviction

Two-week diligence cycles were reduced to one week—without any compromise to detail or rigor.

Enhanced Ability to Win

Faster diligence positioned them ahead of competitors and impressed management teams with early expertise.

Customized, High-Quality Insights

Bespoke AI outputs aligned precisely with the firm’s unique expertise, matching human-level performance.