Ever wonder which technology companies are growing in value the fastest? Play Bigger crunched the numbers & discovered 11 "Super-Unicorns" growing by over $1B in value a year and 89 more of tech's top value creators.
19. Workday is the number one enterprise
company creating a market cap
$15.2 billion in ten years.
…BTW Oracle paid $10B in a hostile take over of PeopleSoft in 2004
21. Play Bigger TTMC 100
Market Cap Created by Category
US Companies, Founded Since 2000, VC backed, Valuation @Dec 31, 2014
Source: Play Bigger Advisors
Enterprise
$136B
24%
Consumer
$432B
76%
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33. Play Bigger Research Agenda
We believe that the failure rate of startups and new product
introductions is too high in the technology industry, with less
than one percent of startups achieving billion dollar values.
The objective of our research is to assist entrepreneurs,
executives and VCs with insights that increase their odds of
winning.
34. Play Bigger Methodology
We assembled a team of computer scientists, data scientists and
business executives to comb through a variety of data sources to
create a fact-based database on the velocity of market cap growth.
The research examined financial transactions from 702,000
companies searching for companies that were U.S.-headquartered,
venture backed, in the technology industry and founded since 2000.
We only included transactions that occurred between January 1,
2000 and December 31, 2014.
The research was conducted using a primary data source from
PrivCo (http://www.privco.com). We also used Crunchbase
(https://www.crunchbase.com) and other sources. We developed
custom python code to extract and manipulate data and primarily
used Tableau (http://www.tableau.com) for the analytics.
35. Selection Process
The research was conducted using a primary data source from
PrivCo (http://www.privco.com). The PrivCo team provided us with
what we believe is accurate, complete, hard-to-find and timely private
company data.
We also used Crunchbase (https://www.crunchbase.com) and other
sources such as Google finance, Bloomberg, Wikipedia, etc. We
wrote python code to manipulate and extract the data. We also
downloaded data where APIs weren’t available. The bulk of our
analytics were conducted with Tableau (http://www.tableau.com).
There has been a lot written about the methods of establishing the
value of a private company. Our approach is that if the valuation data
was reliable we included it and if it was not, we did not include it.
36. Selection Process
We selected financial transactions from 702,000 companies where they met
the following selection criteria:
• Headquartered in the United States
• Venture backed
• In the technology industry
• Founded since 2000
• Financial transaction occurred between Jan 1 2000 and Dec 31 2014
This created a raw dataset of 28,810 transactions. We further reduced the
transactions down to a final database of 2,694 transactions by removing
duplicates, questionable or lack of valuation information, non-standard VC
transactions, debt financing, exotic financing, spin-outs, leveraged buyouts
and other non-equity financings.
While we understand that valuations based on private investments have are
different from publicly traded companies, we did not adjust the private
valuations and we did not adjust for inflation.
37. About Play Bigger
Play Bigger is on a mission to help great company builders increase the odds of
winning.
We specialize in Category Design - the discipline of creating and monetizing new
markets. It is a strategy for taking control over the development of a green-field
potential. The goal of category design is to create a new space and become the
Category King.
As audacious as it may sound, we aspire to improve the win rate across our industry by
making category design a core competency practiced by the best technology
companies. Just like you can design a great company and a great product, you can
and should design a great category. And category design works for both startups and
existing companies looking for a growth breakthrough.
Based in the San Francisco Bay Area, Play Bigger was founded by Dave Peterson, Al
Ramadan and Christopher Lochhead - former entrepreneurs and operating executives
turned advisors. More information about Play Bigger can be found at the
www.playbigger.com and by following the company on Twitter @playbiggeradv,
Facebook, and Linkedin.
38. Definitions
We defined a number of terms used throughout our research:
• Market Cap is measure of a company’s value and is typically calculated by
multiplying the number of shares outstanding by the current share price. In this
report we establish a company’s market cap in one of three ways:
• Public market capitalization as reported by 3rd parties such as Bloomberg, Google
finance, etc;
• Purchase price at the time of acquisition of the company by another entity
• The most recent post-money valuation from a private financing transaction
• TTMC Velocity is a measure of the speed at which a company grows its market
cap. For a company it is calculated by dividing its latest Market Cap by the
number of years since it was founded.
• Time to Market Cap is a term created by Play Bigger to measure of how long it
takes a company to reach seminal valuation / market capitalization milestones.
• Unicorn is a term popularized by Aileen Lee, founder of Cowboy Ventures to
describe billion-dollar plus value technology companies.
39. Definitions
• Super-Unicorn is a term created by Play Bigger to describe technology
companies who are growing in value at or above one billion U.S.
dollars a year.
• Category King is a term created by Play Bigger to describe the
company who achieves the dominant position in a given space as
measure by market cap. Our research indicates that Category Kings
attain 70-80 percent of the market cap in their sector.