Saïd Business School at the University of Oxford has published research showing artificial intelligence is increasingly being used to decide which startups reach venture capital partners, with automated systems now screening large parts of the investment pipeline before any human review.
The study is based on qualitative analysis of venture capital organisations, including interviews with investors and case studies of businesses already using AI in their workflows. It examines how the technology is being applied in sourcing and screening and finds that fewer startups are receiving direct partner attention as those earlier decisions become more automated.
According to the research, screening models apply explicit thresholds that determine which companies advance to human review. One venture capital organisation cited in the study uses an AI system to process around 1,000 startup leads each week and reduce that flow to a few dozen opportunities.
Thomas Hellmann, researcher and professor at Saïd Business School, said: “AI systems have effectively become a gatekeeping infrastructure between sourced deals and partner attention, fundamentally changing how investment pipelines operate.”
The study also finds that founders are starting to respond to these systems directly. Some are refining websites, profiles, and other materials to match the keywords and categories they believe AI-based tools prioritise. At the same time, the paper raises concerns about the way historical venture data may shape future decisions if screening models favour founders who resemble those backed in the past.
Hellmann said: “Models trained on historical venture data may favour founders who resemble those previously backed, reinforcing existing patterns in investment decisions.”
The research says final investment decisions still remain with human investors. AI tools are mainly being used to organise information and support analysis, although the paper notes that some venture capitalists are beginning to use AI in investment committees as a devil’s advocate or consultative voice.
The study, The Impact of Artificial Intelligence on Venture Capital: A Critical Outlook, concludes that AI is increasing the number of startups investors can track while narrowing the subset that receives meaningful attention.
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