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

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.

Automated summary

This study investigates the impact of founder age on fundraising using a randomized experiment and AI manipulation. The research demonstrates that age perceptions significantly matter to investors, with appearing older benefiting entrepreneurs in seeking funding. However, as age perceptions increase, these benefits decline and eventually become detrimental to fundraising efforts, showing an inverted-U relationship.