AI for Investor Due Diligence, Deal Structuring and Capital Raising
How AI Is Changing Investor Due Diligence, Deal Structuring & Capital Raising
Founders, fund managers and investors who want to speed up deal screening, deal structuring and sponsor vetting while keeping professional review in place.
Worth quoting
"You should always hire a real attorney, hire a real forensic accountant, walk a manufacturing plant in person, walk a building in person, for sure."
"Typically, the fastest way to capitalize any platform is to find someone who made money in that niche, knows it well, and then bring them in as a blue chip anchor investor."
"This does not replace a traditional background check. It just helps you dodge bullets, right?."
Summary
Richard C. Wilson describes a set of AI tools built for investors and founders. One tool suggests 10 deal structures from a description of the deal, and users can ask for 10 more like the ones they prefer. Another has produced over 2,000 due diligence reports. He says the tools are trained on 1,500 investor transcripts rather than general web content, so the answers fit the niche.
The talk also covers vetting people before meeting them. A credibility tool searches a person's name alongside terms like SEC and conviction, then writes a report. Richard says it does not replace a background check. He stresses that human experts such as attorneys and forensic accountants, along with in-person site visits, still have a place alongside the tools. The aim is to spend less time on weak deals and more time on serious ones.
Facts and figures
- The deal structure tool has over a thousand structures programmed in it, and members have generated over 8,000 structures with it.
- The Dewey due diligence tool has produced over 2,000 reports, which Richard equates to nine full-time year-round employees.
- Pitch Score has been used 800 times and analyzes a pitch deck from 25 directions.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: How AI Is Changing Investor Due Diligence, Deal Structuring & Capital Raising. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around deal structure terms, sponsor background checks and investor communications. Do not use AI to write your own legal agreements.
What to take from this talk
- Use AI to screen deals early. Richard says AI screening can help people avoid calls and meetings that turn out to be half-cooked or unprofessional. The goal is to spot a bad fit early and save hours.
- Generate many deal structures quickly. The deal structure tool holds over a thousand structures. A user describes the deal, gets 10 options, picks favorites such as numbers four and seven, and asks for 10 more like them until one fits.
- Test assumptions with due diligence reports. Richard describes a Broadway deal whose target returns looked aggressive. According to Richard, the tool indicated the show would have to perform better than Cats to hit the projections.
- Check people before you meet them. Before flying to meet someone or investing, the talk suggests searching their name with words like Ponzi scheme, SEC and jail sentence. The tool then compiles a credibility report.
- Keep human experts in the loop. Richard says AI should not be trusted blindly. Many people still involve a real attorney and a forensic accountant and walk the plant or building in person.
- 1Describe the deal you are negotiating
- 2Review 10 suggested structures
- 3Pick your favorites, such as four and seven
- 4Ask for 10 more like them
- 5Repeat until one fits
- 6Draft the email to the counterparty
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
How does the deal structure tool work?
A user tells it what deal they are negotiating and it suggests 10 deal structures. The user can pick favorites and ask for 10 more like them. It can then offer to write an email to the counterparty.
Does the credibility tool replace a background check?
No. Richard says it does not replace a traditional background check. It searches for red flags and social profiles and produces a report to help avoid wasted time.
What is Pitch Score?
Pitch Score analyzes a pitch deck in 25 ways. Richard says to treat it like 25 sides of a Rubik's Cube and not as gospel, since the founder knows the industry best.
Put this into practice with the pitch deck grader. See all due diligence resources.
