Exploring the Relationship Between Genetic Firm Founders’ Gender and Firm Outcomes and Innovation

Lead Researchers:

Jennifer L. Woolley
Leavey School of Business, Santa Clara University

Shaohua Lu
Leavey School of Business, Santa Clara University

Research Questions

This study examines how founders’ human and social capital influence the likelihood of IPO completions, and whether gender moderates this relationship.

Summary of Methods

The researchers compiled a database of genomics firms founded between 1983 and 2018, using multiple sources such as patents, grants, industry lists, publications, websites, venture capital records, press releases, and news articles. Firms were included if at least 50% of their activities (e.g., patents, products, R&D, or sales) were genomics-related, and their activities were tracked through 2022.

The study focuses on IPOs on U.S. centralized exchanges (NYSE and NASDAQ). Founders’ entrepreneurial human capital, including IPO, industry, education and career, was assessed from CVs, resumes, biographies, websites, LinkedIn, and Crunchbase. Data were triangulated for reliability. Event history analysis was used to analyze IPO occurrence and timing.

Key Findings: Exploring the Relationship Between Genetic Firm Founders’ Gender and Firm Outcomes and Innovation
Founders’ education and work experience affect IPO likelihood, though not always in expected ways. Firms with a higher proportion of founders with IPO experience are up to 2.5 times more likely to go public; having even one founder with IPO experience raises the likelihood nearly fourfold. Female founders’ IPO experience has a substantially stronger effect than that of male founders: ventures with female founders holding IPO experience are up to 10 times more likely to go public, compared to over twice as likely for male founders. Having female founders with relevant industry experience doubles IPO likelihood, whereas the effect of male industry experience is positive but not statistically significant. Certain professional backgrounds (executives, managers, professors, research scientists) decrease IPO likelihood. Founding teams with advanced degrees from top VC-backed universities nearly double IPO likelihood.

Key Findings: Exploring the Relationship Between Genetic Firm Founders’ Gender and Firm Outcomes and Innovation

Founders’ education and work experience affect IPO likelihood, though not always in expected ways.
Firms with a higher proportion of founders with IPO experience are up to 2.5 times more likely to go public; having even one founder with IPO experience raises the likelihood nearly fourfold.
Female founders’ IPO experience has a substantially stronger effect than that of male founders: ventures with female founders holding IPO experience are up to 10 times more likely to go public, compared to over twice as likely for male founders.
Having female founders with relevant industry experience doubles IPO likelihood, whereas the effect of male industry experience is positive but not statistically significant.
Certain professional backgrounds (executives, managers, professors, research scientists) decrease IPO likelihood.
Founding teams with advanced degrees from top VC-backed universities nearly double IPO likelihood.

Future Implications:

IPO experience is one of the most critical form of human capital for ventures pursuing public offerings. However, its impact is gendered: female founders leverage IPO and industry experience more effectively than male founders. Firms with female founders holding IPO experience were up to 10 times more likely to go public, compared to just over twice for male founders. Similarly, women’s industry experience doubled the likelihood of IPOs, while men’s was positive but not significant. Many female founders were serial entrepreneurs, repeatedly translating IPO experience into success.

These findings challenge traditional assumptions that human capital has uniform effects. Instead, they show that the value of human capital depends on how it is applied and highlight the need to account for gender differences when theorizing about entrepreneurial success.

Support from the Ciocca Center

Funding for a research assistant, summer support, and attendance at a genomics industry conference.