What are dual-class share structures and how do they work?

Dual-class share structures involve issuing different types of shares with varying voting rights. Typically, founders or insiders hold shares with superior voting power (often 10 votes per share), whilst public investors receive shares with standard voting rights (1 vote per share). This allows founders to maintain control over company decisions even when they own a minority of the total equity.

Why do some investors prefer founder-controlled companies?

Investors may prefer founder-controlled companies because visionary leaders can focus on long-term strategy without being pressured by short-term market demands or activist investors. This can lead to more innovative decisions, sustained research and development investment, and potentially greater long-term value creation, though it does limit shareholder influence on corporate governance.

What are the risks of investing in founder-controlled companies?

The main risks include reduced shareholder influence on major decisions, potential conflicts between founder interests and minority shareholders, and the possibility that founder vision may not always align with market realities. Additionally, these companies may be more volatile as they can pursue bold strategies that don't immediately pay off.

How does SpaceX's potential IPO relate to this investment theme?

SpaceX is reportedly considering a dual-class structure for its anticipated 2026 IPO, which would allow Elon Musk to maintain strategic control. This development has renewed investor interest in the broader theme of founder-controlled public companies, highlighting how such structures can enable long-term vision whilst accessing public capital markets.

15 handpicked stocks

Founder-Controlled Stocks May Gain Focus in 2025

SpaceX is reportedly considering a dual-class share structure for its IPO to ensure founder Elon Musk retains control. This move could spark investor interest in other public companies where founders or insiders hold significant voting power through similar stock structures.

Han Tan | Market Analyst

Published on February 15

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Meta Platforms Inc (Facebook)

Your Basket's Financial Footprint

This basket's total market capitalisation is $14.73T and is heavily anchored by a few very large-cap stocks, giving it a concentrated, large-cap profile.

Key Takeaways for Investors:

Large-cap dominance generally implies lower volatility and returns that more closely track broad market movements.
Treat as a core, long-term holding for portfolio stability rather than a short-term speculative position.
Expect steady, long-term appreciation rather than rapid, short-term gains; growth is likely more moderate.

Total Market Cap

META: $1.67T
GOOGL: $4.04T
AMZN: $2.13T
Other

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+38.99%

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About This Group of Stocks

Our Expert Thinking

SpaceX's potential dual-class IPO has highlighted an investment opportunity in companies where founders maintain significant voting control. These structures allow visionary leaders to execute long-term strategies without being pressured by short-term market demands, potentially creating substantial value for patient investors.

What You Need to Know

This group focuses on established companies across technology and media sectors that use dual-class share structures or where founders hold significant influence. These governance models prioritise strategic stability over traditional shareholder democracy, which can be controversial but may foster disruptive innovation.

Why These Stocks

Each company in this group was selected because their founders or insiders retain meaningful control through special share structures or substantial ownership stakes. Professional analysts identified these firms as examples of the governance philosophy that allows leadership to focus on transformative, long-term growth strategies.

Group Performance Snapshot

38.99%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 38.99% over the next year.

9 of 14

Stocks Rated Buy by Analysts

9 of 14 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

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Visionary Leadership in Action

These companies benefit from founders who can execute bold, transformative strategies without being constrained by quarterly earnings pressures or activist investors demanding short-term returns.

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Long-Term Innovation Edge

Founder-controlled structures often enable companies to invest heavily in research, development, and disruptive technologies that may take years to pay off but could create substantial competitive advantages.

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Market-Proven Success Stories

Many of the world's most successful tech giants, from Meta to Google, have used dual-class structures to maintain founder control whilst delivering exceptional returns to shareholders over time.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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