Founder-led companies tend do outperform than others, and there are some good reasons for this.

First, founders usually care deeply about their company. It’s their “baby,” so they’re willing to make tough decisions and think long-term, instead of just worrying about next quarter’s result. They’re more likely to take smart risks or invest in new ideas where the payoff is far in the future.

Second, founders often own a big chunk of the company. This means their personal wealth is tied to the company’s success, so their goals are the same as regular shareholders: they want the business to grow and do well.

Third, founder-led companies tend to be more innovative and flexible. Since the founder is usually passionate and knows the business inside out, they can move quickly and adapt to changes, rather than getting bogged down in bureaucracy.

Lastly, founders usually inspire their teams. Their passion and vision can create a strong company culture, which helps attract talented people and keeps everyone motivated.

All these things add up.