Diald AI Secures $3.75M Early-Stage Funding

Diald AI, a due diligence and underwriting platform powered by artificial intelligence, announced Tuesday that it has secured $3.75 million in early-stage funding to expand in the United States and Japan.

Institutional investors, including Singapore-based venture capital fund Feedback Ventures, as well as strategic angels and sector-focused funds, participated in the round.

The raise comes at a time of strong market demand from commercial real estate institutional users looking for a more structured and efficient way to evaluate sites and investment opportunities, said Steven Song, founder and CEO at Diald.

“Today we launched a new, updated version of Diald Memo v3.2, which is our smartest, fastest and most economical version that we have built so far,” said Song about the timing of the raise and its use. “We’re scaling really quickly and we’re also going overseas. A lot of our overseas users are also using our platform for U.S. properties. So the raise is really to fuel that growth. We launched our version 3.2 about six months ago, and we’re now releasing version 5.0, so we keep iterating and improving it for global development.

Diald’s expansion includes Japan, where it has a proof-of-concept relationship with one of that country’s leading trading and investment companies, Song said. He added that Diald’s U.S. clients include Shaker Heights, Ohio-based The Max Collaborative, Los Angeles firm Way Capital, as well as New York City-based family office funds.

Diald will also use the latest funding for product development, sales growth, and expanded access to its newly rolled-out pay-as-you-go analysis model, said Song.

Founded in November 2023 in Los Angeles and with a branch office in South Korea, Diald scans and analyzes more than 1.7 million data sources. It provides investors, lenders and developers with due diligence and says it can condense weeks of research into hours. That can in turn uncover risks that could save millions, resulting in a greater return on investment for users, according to the company.

“We’re not a ‘thin wrapper’ company,” said Song. “A lot of companies add something like a prompt layer on top of existing AI engines, but we have our proprietary system that’s far beyond that. That’s why we were nominated for Korea’s TIPS Program. That was a big surprise and honor for us, because it’s a really prestigious Korean government grant to companies. The vetting is intense, so they don’t want to give it to thin wrappers.”

Last week, Diald was recognized at the Commercial Observer’s Breakthrough Awards as the winner for the Tech Advance of the Year in the Innovation Awards category.

“Diald AI is solving a problem that every real estate team feels but few have been able to address at scale, because there has never been a clear framework for gathering and organizing the information that ultimately drives an investment decision,” Feedback Ventures’ Ethan Cheng said in a statement. “Their approach brings structure to data that is typically scattered, giving professionals a clearer basis for comparing opportunities. We see Diald becoming a foundational part of how site selection and underwriting are done in the years ahead, and we’re proud to support their growth.”

Philip Russo can be reached at prusso@commercialobserver.com.