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Betting on success: Unveiling the role of innovation and financing capability on funding decisions by human versus AI evaluators

Author

Listed:
  • Li, Lun
  • Peng, Yanbo
  • Shao, Guanlin
  • Dai, Huiyang

Abstract

This study compares preferences of AI and human evaluators in startup funding, finding that humans prioritize startups with higher innovation capabilities whereas AI favors superior financing capabilities. External certifications can substitute for these internal capabilities, thereby weakening their predictive power.

Suggested Citation

  • Li, Lun & Peng, Yanbo & Shao, Guanlin & Dai, Huiyang, 2025. "Betting on success: Unveiling the role of innovation and financing capability on funding decisions by human versus AI evaluators," Economics Letters, Elsevier, vol. 256(C).
    • Handle: RePEc:eee:ecolet:v:256:y:2025:i:c:s0165176525004422
    DOI: 10.1016/j.econlet.2025.112605
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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