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A Look at the IPO Billionaires’ Club

Zuckerberg, Hoffman among new tech's well-to-do


The past year has seen a plunge in valuations for a variety of tech IPOs — think Facebook (NASDAQ:FB), Groupon (NASDAQ:GRPN) and Zynga (NASDAQ:ZNGA) — but there’s still a number of uber-wealthy entrepreneurs in the lot, according to the latest Forbes 400 list.

Among the Facebookers alone …

Mark Zuckerberg: $13.3 billion (down from $17.5 billion last yaer)
Dustin Moskovitz: $3.8 billion
Eduardo Saverin: $2.2 billion
Sean Parker: $2 billion

Of course, not all IPOs were duds. Professional social network LinkedIn (NYSE:LNKD) is up nearly 280% since it hit the market in May 2011, and company co-founder Reid Hoffman has a net worth of $3.3 billion as a result.

Also, not all IPO billionaires are young’uns. WorkDay (NYSE:WDAY) CEO and co-founder David Duffield is 72; he took his company public last October, and his net worth is now up to $4.8 billion. (Including $25.5 million for an estate in Lake Tahoe. Must be nice, huh?)

Notable to the downside is Zynga co-founder and CEO Mark Pincus, who fell off the list this year — no surprise, considering his company’s stock is off 65% since its offering in late 2011. Once a hot gaming operator, Zynga has been unable to make a smooth transition to mobile, and it also suffered a disastrous acquisition of OMGPOP, the developer of Draw Something.

Of course, veteran tech billionaires are still going strong, too. Most notably, Microsoft’s (NASDAQ:MSFT) Bill Gates is the world’s second-richest person with a net worth of $67 billion. Some other old-tech operators include:

Name Company Ticker Net Worth
Larry Ellison Oracle ORCL $43 billion
Michael Dell Dell DELL $15.3 billion
Steve Ballmer Microsoft MSFT $15.2 billion
Paul Allen Microsoft MSFT $15 billion
Hasso Plattner SAP SAP $8.9 billion

The Forbes list also has some hints as to the IPO billionaires of the future.

One good prospect is Bob Parsons, the former Vietnam vet who founded Go Daddy and whose long history as a successful entrepreneur has earned him an estimated net worth of $1.5 billion.

Parsons has not yet taken a company public, but this likely will change with Go Daddy, which is rumored to hit the markets within the next couple years. To help things along, the company got a slug of capital from KKR (NYSE:KKR), Silver Lake and TCV in 2011.

Another IPO prospect is Jack Dorsey, the co-founder and CEO of Square who is worth an estimated $1.1 billion. The company is revolutionizing the mobile payments business, and has been a thorn in the side of VeriFone (NYSE:PAY).

Square might not even be Dorsey’s only IPO, either — he’s also the co-founder of Twitter.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.”Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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