Financing start-ups through artificial intelligence

Resumen

The incredible speed with which artificial intelligence (AI) is entering all sectors is forcing companies into a race to link their businesses with AI. This trend is also driving companies, strategists, pioneers, entrepreneurs and researchers to use AI to design new strategies, create new sources of business value and manage innovative forms of financing. This scenario accurately describes the current situation of start-ups. New firms are forced to connect with AI in order to develop, either because of its importance for their products or services or because funders use it to make investment or purchase decisions. Therefore, to define the impact of AI on the financing of start-ups, we must differentiate between two contexts: the financing of technological start-ups based on AI and the use of AI by investors and funders to support the most cutting-edge and profitable start-ups. This chapter begins with an introduction to start-ups, the diversification of financial activities and the coherence of these new models with existing theoretical business frameworks that explain outcomes. Subsequently, it investigates the theory on AI in start-ups, providing real examples of emerging companies that illustrate these two contexts. The chapter provides examples of AI-based start-ups that have already been financed and companies that use AI to support the development of start-ups through either financial investment or logistical support.