London-based startup Capsa AI has raised £1.7 million in a new funding round to advance its AI-driven platform, which aims to automate business compliance tasks for private equity (PE) investors.

The company, headquartered in Kings Cross, is focused on replacing manual, time-consuming compliance processes with artificial intelligence to streamline due diligence for private equity funds.

Capsa's platform handles tasks such as creating company profiles, consolidating financial data, analyzing financial performance, and reviewing customer contracts—areas often bogged down by repetitive, low-skill labor. The company aims to drive productivity and efficiency in the private equity sector, addressing what it sees as a critical challenge for investors in one of the world’s largest industries.

“Capsa AI has received such a positive reaction from investors and customers alike because we are using AI to address a clear and pressing challenge in one of the world’s biggest industries,” said Capsa co-founder Danyal Özdüzenciler, who has a background in private equity and investment banking with experience at Citi, Deutsche Bank, and AEA Investors.

“We are already driving productivity and efficiency in major PE firms and I have every confidence that we can build a product which will transform collaboration, knowledge sharing, and decision-making in private equity and private capital worldwide.”

Leading the AI Charge in Private Equity

The £1.7m funding round was led by Outward VC, with participation from Cornerstone VC, Antler, and several angel investors from the fintech and private equity sectors. Outward VC principal Sanchit Dhote highlighted the growing demand for AI-driven solutions in private equity, given the sector's rapid expansion over the last decade.

“With private markets experiencing tremendous growth over the past decade, the volume and complexity of data for due diligence has grown exponentially,” Dhote explained. “Capsa is at the forefront of driving the adoption of AI technologies in the PE industry. We are confident that Capsa AI will become the essential infrastructure for managing private assets.”

Automating the Future of Private Equity

Capsa AI’s platform addresses a key pain point for PE firms, where the growing complexity of data has made traditional due diligence processes increasingly inefficient. By automating tasks such as data consolidation and performance analysis, Capsa aims to free up PE professionals to focus on higher-value strategic decisions.

The company’s mission is to become a central tool for private equity and private capital firms, enabling smoother collaboration, faster decision-making, and more accurate knowledge sharing across the industry. With backing from leading venture capitalists and angel investors, Capsa AI is positioned to lead the way in transforming how private equity operates.

As private markets continue to grow and data complexity increases, the adoption of AI solutions like Capsa AI could become crucial for maintaining efficiency and competitiveness in the PE industry. The company’s latest funding will allow it to further develop its platform and solidify its role as a key player in the AI-driven evolution of private equity.