In conversation with Capsa.AI’s co-Founder Danyal Özdüzenciler

  • Author

    D'Arcy Whelan

  • Category

    Portfolio

  • Date

    September 16, 2024

In conversation with Capsa.AI’s co-Founder Danyal Özdüzenciler

Danyal is the CEO and co-Founder of Capsa.AI – the company on a mission to create the AI operating system for Private Equity professionals. Outward recently led the £1.7m Seed round and you can read more about our investment thesis here. In this piece, we wanted to shed some light on the people behind the business. 

1. A snapshot into your upbringing?

I grew up in a small town in Germany with a mixed Turkish and German background, rooted in a humble upbringing. From an early age, I have always been interested in different cultures and places, and wanted to explore the world. This, coupled with a desire to constantly put myself in challenging and uncomfortable situations, led me to leave home at sixteen for an exchange year in the US. I then spent a year in China during my undergraduate studies, before moving to the UK permanently. My competitive spirit has also been a driving influence throughout my early life: in sports I played basketball on professional level, and consistently strived for outstanding academic achievements. Similarly, in my career, I was drawn to the most competitive fields in business. After six years in Private Equity and Investment Banking, I embraced the ultimate challenge of becoming an entrepreneur.  

2. How did the idea for Capsa come to you?

I spent six years in Private Equity and Investment Banking, and as a well-educated, highly paid professional, I was struck by how many nights and weekends were wasted on low-skill due diligence tasks. My entrepreneurial journey did not however start with solving this problem. I left PE in pursuit of a new challenge, with the idea to start an on demand fashion marketplace – a marrying of ASOS and Gorillas. It was a humbling experience and I realised you have to eat a lot of dirt if you want to be an entrepreneur. I went from a high paying job in Mayfair to a delivery man, cycling eight hours a day seven days a week throughout winter, to test and build the MVP. That business failed, but it taught me that passion alone was not enough to succeed, I needed to focus on an area where I had a competitive edge. That’s when I returned to solve for the inefficiencies I had experienced in the PE sector.

3. How does Callum, Capsa’s CTO and co-Founder, complement you?

Callum and I are the perfect complement. While my expertise lies in understanding the financial landscape and client pain points, Callum brings the technical genius needed to solve these problems. His deep knowledge of machine learning and AI, combined with my understanding of the market, creates a powerful synergy that drives Capsa forward.

4. What is Capsa’s unfair advantage?

Our unfair advantage lies in our deep industry roots and technical expertise. With over six years of experience in private equity and investment banking, I’ve directly faced the inefficiencies that plague due diligence processes. Callum, with his extensive background in leading AI-driven product development, complements this with the technical know-how to address these pain points effectively. This unique blend has allowed us to move incredibly fast, delivering tangible efficiency gains for multiple PE firms managing over $30 billion in just a few months post-launch.

5. The biggest risk you’ve taken to get here?

It would be leaving a stable, lucrative career in PE to dive into the unknown world of startups. I could have given up and gone back to finance after my first business failed, but I wanted to take the learnings forward. I deeply believe in the problem we’re solving and the value Capsa will bring to the industry. It was a leap of faith, but one I’d take again in a heartbeat.

6. What keeps you up at night?

Building a sustainable, long term business against the threat of an ever evolving AI landscape. We need to build a platform that is empowered by updates from the likes of OpenAI, rather than one that is disrupted (or steamrolled) by it.

7. As you grow the Capsa team, what traits are you looking for in your early hires?

Obviously we want to hire extremely smart people. But what’s more important, is that they have a lot of grit and resilience. It’s not going to be an easy ride over the next couple of months and years. We need people who can think on their feet, take ownership, and challenge the way things have been done in the past – including challenging me!

8. The most helpful advice you’ve received from a fellow founder?

When I did my due diligence on Outward, I spoke to various founders including Shachar from Curve who said: ‘talent is everything – never compromise.’ If we want to be a unicorn, we need to have an A team, especially when it comes to the first layer of employees.

9. A story that has inspired you?

One story that has always inspired me is how Apple created such strong customer loyalty. Even as they scaled globally, they kept their core values clear, and customers don’t just buy Apple products—they identify with the brand’s mission. I aspire to achieve the same with Capsa, where our customers feel deeply connected to our vision and values.

10. What do you enjoy doing outside of work when you aren’t building Capsa?

I’m passionate about staying active and usually do sports or fitness six times a week. I also make it a priority to block off time each day to disconnect completely from work and technology, to enjoy really high-quality moments with my family and friends. This is essential to keep me grounded and energised.