The market of biotech related products is complex and have experienced a substantial development in the recent years. Companies operating in this industry are often capital intensiveand heavily dependent on research in order to succeed, in a long-term perspective. The amount of biotech-related products is constantly facing an overwhelming level of demand. Therefore, finding a market niche is not usually the primary challenge, but instead the challenge lies deeply rooted within product development and R&D. To facilitate company financing and shifts in ownership, these companies are often drawn towards the capital market (the stock exchange). Furthermore, the founder plays a considerable role at major events within a company, such as IPOs. On such occasions, founders emit unique signals through their actions and mere presence. This study aims to explain the connection between founder position and voting rights (through shareholding) within a biotech-company, and the stock performance after an IPO. The sample consists of 119 SME biotech-companies, listed on the Swedish stock exchange between 2010-2017. The study provides the receiver with an analysis of how founders within the Swedish biotech-industry affects the stock performance after an IPO. The study shows a significant andpositive connection between founders with an “other governing position” (e.g. CRO, CSO,COO) and stock performance after an IPO. The connection is strongest by the first day of trading and after one week. We also found a negative connection between founder shareholding and the stock performance on the first day of trading. The result has strategic implications onhow companies send out signals during an IPO and how these signals are interpreted by the market.