Founder gender and firm exit routes: The mediating roles of firm size and VC financing

Abstract

It is well established that founder gender affects starting and managing new ventures, but its impact on firm exits is less understood. Following an in-depth exploration of the gendered experience of entrepreneurship through the lenses of liberal feminist and social feminist theories, this study argues that female entrepreneurs are less likely to achieve positive exits through mergers and acquisitions (M&As) or initial public offerings (IPOs). We analyzed data from 18,495 US ventures and found that firm size fully mediates the negative impact of female founders on IPOs and partially on M&As. Venture capital (VC) financing was also found to be a significant path through which founder gender influences firm size. These findings are robust across different methods and time periods. This research enhances our understanding of how gender influences successful business exits and suggests important theory and policy implications for female entrepreneurship.