Immigrant entrepreneurs and exit decisions in new tech ventures: insights from a scenario-based survey study

Technology startups are key drivers of economic growth, with immigrant founders playing an increasingly prominent role in advanced economies. While archival studies link immigrant presence in founding teams to strategic outcomes, the mechanisms remain unclear. We examine whether traits central to social psychology theories of entrepreneurship mediate the relationship between immigrant status and exit, focusing on financial harvests through acquisitions—the dominant exit route for technology ventures. Using scenario-based surveys conducted in Israel and Canada, we measure perceived innovativeness, risk propensity, locus of control, and entrepreneurial energy—personal entrepreneurial traits unavailable in archival data. We document that immigrant founders are significantly more likely to pursue financial harvest exits and display greater risk aversion. Multivariate models and bootstrap analyses reveal that risk propensity partially mediates the immigrant–exit relationship, while other traits do not. By identifying psychological mechanisms linking immigrant status to exit, our study advances theory on cultural influences in entrepreneurial strategy and overcomes the limitations of archival designs. The findings carry practical implications for entrepreneurs structuring founding teams, investors evaluating high-growth ventures, and policymakers designing frameworks to foster immigrant-led innovation.