Founder-run companies represent less than 5% of the S&P 500 index but account for nearly 15% of its total market capitalization. Notable examples include NVIDIA, Amazon, Meta, Berkshire Hathaway, and Netflix.
According to a Harvard Business Review study, founder-led companies have outperformed their peers, showcasing a market-adjusted return of 12% over three years compared to negative 26% for firms with professional CEOs.
Three notable founder-run companies include:
- Netflix: Co-founded by Reed Hastings in 1997, it has a market cap of $387.7 billion and anticipates revenues between $43.5 billion and $44.5 billion for 2025.
- AppLovin: Co-founded by Adam Foroughi in 2012, with a market cap of $129.7 billion, it focuses on mobile advertising and utilizes AI for optimization, enjoying a Zacks Rank of 1.
- Dell Technologies: Founded by Michael Dell, it has a market cap of $75.5 billion and projects revenues between $22.5 billion and $23.5 billion for Q1 of FY2026, driven by demand for AI servers.
