Unlocking Funding Success for Generative AI Startups: The Crucial Role of Investor Influence

Siddik, Abu Bakkar; Li, Yong; Du, Anna Min

Abstract

Generative AI (GAI) is transforming industries by enabling autonomous content creation. This study explores the impact of investor and technological influences on the funding of 556 GAI startups from 2010 to July 2024. Using principal component analysis, we find that investor influence significantly boosts funding across all levels, while technological influence is insignificant. The results highlight the crucial role of investor networks in securing financial resources for GAI startups. The study's implications suggest that entrepreneurs and policymakers should focus on building strong investor relationships to support the growth of GAI ventures.

Citation

Siddik, A. B., Li, Y., & Du, A. M. (2024). Unlocking Funding Success for Generative AI Startups: The Crucial Role of Investor Influence. Finance Research Letters, 69(Part B), Article 106203. https://doi.org/10.1016/j.frl.2024.106203

• Journal Article Type: Article
• Acceptance Date: Sep 27, 2024
• Online Publication Date: Sep 28, 2024
• Publication Date: 2024-11
• Deposit Date: Sep 30, 2024
• Publicly Available Date: Sep 30, 2024
• Journal: Finance Research Letters
• Print ISSN: 1544-6123
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 69
• Issue: Part B
• Article Number: 106203
• DOI: https://doi.org/10.1016/j.frl.2024.106203
• Keywords: Generative AI, Startups, Funding, Investor, Technological, Crunchbase