A trio of ex-Coinbase employees secured $22 million to address a costly challenge in America’s infrastructure surge: ensuring regulatory compliance without drowning in paperwork. Their startup, Dili, uses AI to automate wage and apprenticeship law checks for firms involved in federally funded projects.
Stephanie Song, Brian Fernandez, and Anand Chaturvedi founded Dili after launching it through Y Combinator’s summer 2023 batch. Originally designed as an AI tool to streamline due diligence for private equity investors by analyzing vast data rooms, the founders pivoted to a bigger problem. The Inflation Reduction Act spurred a flood of tax incentives aimed at clean energy and infrastructure, including a 30% Investment Tax Credit. But to claim these benefits, companies must comply strictly with prevailing wage and apprenticeship rules tied to federal funding.
AI Meets Infrastructure Compliance
Construction firms juggling hundreds of subcontractors across multiple sites face a paperwork nightmare ensuring payrolls and apprenticeship ratios meet federal standards. Errors can trigger clawbacks of millions in tax credits. Dili’s platform automates payroll validation and audit trails, protecting over $1 billion in tax credits and funding across 700 projects already. This rapid traction since its 2023 launch highlights a growing demand for AI compliance tools as government spending on infrastructure climbs.
Backed by Khosla Ventures, Allianz, Rebel Fund, and others, Dili mainly serves engineering, procurement, and construction companies in energy and infrastructure sectors. Its software cross-checks payroll data against federal databases like SAM.gov to maintain airtight compliance. While Coinbase was their crypto playground, this new venture digs deep into the regulatory weeds where billions are at stake.
This content is for informational purposes and does not constitute financial advice.
