The SaaS exit gap

Representation of women in tech and SaaS in particular has always been an issue. For some, more than others. Despite the growing number of female-led startups and extremely successful ones at that, systemic biases and structural barriers continue to hinder equitable outcomes in business valuations and exits. So here, we went on exploring the underlying causes, the extent of the disparity, and potential solutions to bridge this gap.

But first, some eye-opening statistics

• Male-founded businesses in the Technology, Media, and Telecommunications (TMT) sectors, which include SaaS, are valued 1.5 times higher on average than female-founded businesses (Forbes, 2024).
  
• For every $1 million a female founder receives during an exit, a male founder receives $1.5 million for a similar business, reflecting a 50% disparity in exit outcomes (The Big Exit, 2024).
  
• Less than 1% of businesses that sold a majority stake were female-founded. In the U.S., this figure was 1.37%, while in Europe and the rest of the world, it was as low as 0.35% (Forbes, 2024).

• Despite the valuation gap, female-founded companies tend to exit faster, with a median time to exit of 7.2 years compared to 8.1 years for all startups (PitchBook, 2023).

Understanding the exit gap

What does “ exit gap” actually mean? It refers to the disparity in financial outcomes when businesses founded by women are sold or exited compared to those founded by men. We all have seen news and reports about great differences in funding and biases in the investment environment for early-stage female-led businesses. But it turns out, it drags on for the entire lifecycle of those companies. And it’s especially visible in SaaS. So, how do we make sure SaaS is less of a bro-land and is more inclusive with equal opportunities for all? 

“When I started in this space ten years ago, it wasn’t common to see women in the C-suite, especially at companies going through an acquisition. Though it’s becoming more typical, it’s still not the norm. There has been progress. More women are stepping into leadership roles, and more female-founded SaaS companies are gaining traction, but the gap is still there. M&A has long relied on established networks and pattern recognition, which tend to favor founders and teams that resemble those who have exited before. Unless those systems are rethought, the outcomes stay the same.

That said, some acquirers are taking more deliberate steps. I’ve seen more diversity on deal teams, which brings broader perspectives to how opportunities are evaluated. There’s also been a shift in sourcing. More firms are proactively building relationships with underrepresented founders instead of relying on traditional channels. A number of private equity firms have also introduced internal diversity benchmarks and are tracking representation within their portfolios. It’s not yet consistent across the industry, but the direction is encouraging.

I’m also seeing more women in senior roles on the buy side, both at private equity firms and strategic acquirers. More women are leading deals and influencing decisions. On the founder side, more women are building strong companies and getting in-market. Many are creating opportunities for others through hiring, mentorship, or expanding access. The change is gradual, but it’s real and becoming harder to ignore.” 

© Diamond Innabi, Software Equity Group

What causes the exit gap in the first place?

Let’s be real, it is probably a wild mix of biases, barriers, and behaviors that have been forming for years, and we can’t manage to shake off. But it’s also the fact that there are way fewer women in tech overall. If the percentage of female-led businesses is already so low, seeing those exit numbers kind of makes sense. Yet, it’s important to understand each of the factors to get an idea of how to fight them. 

1. Systemic undervaluation of female-founded businesses

According to some of the recent reports, female-founded businesses don’t get the valuations they deserve compared to pretty much identical (we’re talking early-stage here) ideas coming from their fellow male entrepreneurs. Getting back to that upsetting statistic of women exiting their businesses earlier, there might be a question of the stability and longevity of the ventures. And here we seem to enter the chicken and the egg situation of either it is less money for female-led businesses or fewer businesses due to the lack of support. 

2. Access to capital

Female founders face significant challenges in accessing venture capital (VC) funding. In 2025, woman-founded startups received just 2.3% of all VC funding (Marketing Scoop, 2025). 

3. Bias in investor networks

The investment ecosystem remains predominantly male-dominated, with fewer female investors and decision-makers. This lack of diversity just makes it harder to make the decisions that even in 2025 seem to be too bold to be true, therefore allowing the decision-makers to fall for the “traditional” patterns.

“M&A still has an old-school culture, made up mostly of men. Anecdotally, I can tell you that most M&A advisors are men. Most buyers are firms led by men. And most of the voices giving advice about M&A are male. That means women are less likely to have a friend or two who can offer casual advice through the sale process. One of our goals at They Got Acquired is to create a space where all founders, not just women, can learn about how to sell their business in a really accessible way. And my hope is that by leading this brand with a female voice, women might be more likely to ask us for support. I do a lot of free calls with founders who want to sell their business, and many of them are women. In that way, I see us as playing a tiny part in helping to close the exit gap.” 

© Alexis Grant @They Got Acquired 

Consequences of the exit gap

The shortsightedness of the investors and acquirers whose decisions are driven by biases and ancient societal attitudes is pretty remarkable. Not only does it install additional barriers for incredible talent to create beautiful products, teams, and cultures, but it also has direct implications for the entire industry and, therefore, the economy at large. 

It’s not just about the missed opportunities for investors here, but also slowing down the progress toward gender diversity in tech. 

We always talk about the importance of letting SaaS customers know the product is for them, they can relate to it, and see the unique benefits for themselves. And if founding a SaaS was a product, getting any woman to subscribe would be a pretty big challenge. 

How do we bridge the exit gap?

First of all, it’s important to emphasise that bridging the gap is definitely not about favors. It’s not about deliberately hiring women or investing in female-owned businesses to make the numbers work. It’s about creating equal opportunities and an environment where all the amazing businesses and people get the same treatment. It’s going beyond gender towards a non-subjective assessment of the idea, metrics, and overall relevancy of the business. 

1. Increasing female representation in investment/acquiring companies

It’s true that you feel more comfortable talking to a person who at least looks a bit more like you. They may not have the exact same experience, but they can relate. The M&A scene is highly male-driven, and having a female representative there may make all the difference for founders who have already been fighting the “it’s raining men” situation throughout their career, to also have to defend their “baby” in the same environment. This is not to say working with male M&A experts and advisors immediately puts women in a less favorable position, but to emphasise the opportunity to have a smoother, less stressful process.

2. Providing mentorship and support

The exit gap has been given more and more visibility lately. There’re quite a few support groups and experienced advisors who can help with guidance now. 

We, at saas.group, always encourage founders we approach to talk to anybody who has sold to us before. And yes, we have to admit (sadly), we have never acquired a company that was female-led (and are working hard to make sure that changes), but we do have incredible women CEOs who know exactly how it works from the inside. And let’s face it, that’s really what matters after the acquisition. 

“Ask every question: Many times, women feel afraid to ask “what exactly does this term mean”, for fear that they will look dumb or unknowledgeable. But the reality is, most of us didn’t start businesses because we had an in-depth knowledge of M&A. It’s very important to read every detail of the deal, and stop and understand what each piece actually means.

Ignore “valuations”: You know what your business is worth? Whatever someone will pay for it. This works in both ways– if you have something great that someone really wants for a strategic reason, they’ll blow past the multiples. If you have a business that is in a category that has super high valuations, but you’re almost out of cash and no one wants it, the multiples are completely irrelevant. Multiples are a guide, not a mandate, and folks who get stuck on how an offer compares to multiples in the market often are the ones who don’t get a deal done. 

Make sure your income is RED. I know, we are used to keeping income in the BLACK. But when I say RED, I mean Recurring, Expected, and Diversified. Not all revenue is created equal, and strengthening your revenue will definitely help your valuation.

Revenue is vanity, profit is sanity. Build a good, profitable business, and acquirers will be interested. Sure, there are tech companies that sell for huge numbers that aren’t profitable. But they are few and far between, and they sure as hell aren’t female-founded.

And finally, talk to women who’ve done it before!” 

© Carrie Kerpen  @Whisperer Group 

3. Taking action

Yes, there are a few more great initiatives that governments, banks, and holdings could implement to help bridge that gap. But it’s also about taking those opportunities. It’s not just the top-down approach. Visibility won’t happen without people who want to be visible. 

Having women on stages and in publications creates great waves. And it doesn’t have to be big. You don’t have to become Taylor Swift of SaaS to be celebrated. Building in public, sharing little hacks, putting your efforts out there for everyone (to judge, yes, there’s this side, too) but also to inspire, could make the world of difference. 

At some events/podcasts/stages, you’ll still be the only woman. But so what? Seeing you there may inspire a couple of others to join, and that’s where it all starts. 

Conclusion

The exit gap is real, and it’s a reminder of all the biases and barriers that the entrepreneurial ecosystem has been prone to for years and can’t shake off. Yet, there are already some visible shifts that are moving the tech industry to become a more inclusive space. That means investors taking action, acquirers establishing more sustainable processes and creating a safer environment for a conversation, and advisors building healthier ecosystems. It’s still a long way to go, but by addressing the root causes and implementing targeted solutions, we might just shape the landscape that, at the end of the day, benefits all.