Acquisitions are the dominant exit strategy for startups, yet little is known about how founders influence when to exit via acquisition. Such an exit involves balancing the benefits of early acquisitions, such as immediate returns, against the potential for higher valuations through delayed exits, which carry greater market and operational risks. Using a sample of 630 genomic biotechnology startups from 1983 to 2020, we explore how founders’ human and social capital influence the timing of acquisitions. We find that founders with high human capital, such as industry expertise and entrepreneurial experience, delay acquisitions. In contrast, founders with strong social capital, such as venture capital ties and endorsements, accelerate acquisition. When founders possess both high human and social capital, the opportunities and urgency created by social capital override human capital’s delaying effect, leading to faster exits to capitalize on acquisition offers. We thus contribute to the literature on startup exit strategies by exploring how founders’ human and social capital influence acquisition timing, offering new insights into an underexplored but critical entrepreneurial decision.
