Just a number? Using artificial intelligence to explore perceived founder age in entrepreneurial fundraising

Michael J. Matthews, Aaron H. Anglin, Will Drover and Marcus T. Wolfe

Journal of Business Venturing, 2024, vol. 39, issue 1

Abstract: Leveraging work on role theory and age stereotypes, we deploy a randomized experiment that uses AI to manipulate founder age in fundraising appeals. Broadly, we find that age perceptions matter to investors. Using 949 equity crowdfunding observations, we show that entrepreneurs benefit from appearing older when seeking funding. However, these benefits wane as age perceptions increase, and age perceptions eventually become detrimental to funding efforts, resulting in an inverted-U relationship between age perceptions and funding evaluations. Perceptions of founder intelligence, creativity, energy, and experience mediate this relationship. This study opens new frontiers by introducing founder age perceptions as an important, yet overlooked factor in entrepreneurial fundraising.

Keywords: Age bias; Artificial intelligence (AI); Equity financing; Crowdfunding (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:39:y:2024:i:1:s0883902623000757

DOI: 10.1016/j.jbusvent.2023.106361

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