play bigger time to market cap 100 report
TRANSCRIPT
Time To Market Cap 100
Play Bigger TTMC 100 Report
Ranks Tech’s High Velocity
Value Creators
Ever wonder which new technology
companies were creating the most value
the fastest?
Us too.
So we embarked on a comprehensive data-
science research effort to rank the U.S.
technology companies who are growing in
value the fastest.
Introducing,
TTMC 100
The
Time to Market Cap is the measure of how
long it takes a company to reach seminal
valuation or market capitalization
milestones.
TTMC Velocity is the measure of how fast a
company is increasing its market
capitalization.
Companies who qualify for
The Play Bigger TTMC 100 are
American venture-backed technology
companies founded since the turn of
the century.
And the list was compiled with data
through the end of 2014.
We think TTMC is a strategic lens into the
value being created by new companies,
technologies and categories.
Before we get to the complete list, we
thought you might like to hear some
stunning fast facts.
These 100 legendary companies created over
half a trillion dollars of market cap
from 2000 to 2014.
That’s more than
the GDP of Jamaica
40x
Facebook, Uber & WhatsApp
top the list.
The top 11 companies
are “Super-Unicorns”
increasing their Market
Cap by $1 Billion or
more per year.
Uber holds the record for
fastest time to market cap,
in US history, achieving
$40 billion in 6 years.
51 are Enterprise Focused
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
Consumer technology
companies created 76%
of the market cap.
Play Bigger TTMC 100Market Cap Created by Category
US Companies, Founded Since 2000, VC backed, Valuation @Dec 31, 2014
Source: Play Bigger Advisors
Enterprise
$136B24%
Consumer
$432B76%
TTMC100
The
And now…
# Company nameMarket Cap
($Bn)
TTMC Velocity
($Mn / Yr)
Company
Age (Yrs)
4 Snapchat 10.0 3,765 2.7
5 Twitter 22.4 3,091 7.3
6 LinkedIn 28.5 2,195 13.0
7 Airbnb 10.0 1,589 6.3
8 Workday 15.3 1,527 10.0
9 Dropbox 10.0 1,377 7.3
10 Pinterest 5.0 1,144 4.4
11 Square 6.0 1,042 5.8
Play Bigger TTMC 100: 11 Super Unicorns
1 2 3
FacebookMarket Cap: $214.6BnTTMC Velocity: $19,513M/YCompany Age: 11.0
UberMarket Cap: $40.0BnTTMC Velocity: $6,730M/YCompany Age: 5.9
WhatsAppMarket Cap: $21.8BnTTMC Velocity: $4.247M/YCompany Age: 5.1
# Company nameMarket Cap
($Bn)TTMC Velocity
($Mn / Yr)
Company
Age (Yrs)
12 Palo Alto Networks 9.9 987 10
13 YouTube 1.7 933 1.8
14 Oculus VR 2.0 898 2.2
15 Service Now 10.1 839 12.0
16 Nest Labs 3.2 793 4.0
17 Groupon 5.5 792 7.0
18 Palantir 9.0 754 11.9
19 GoPro 8.1 673 12.0
20 Cloudera 4.1 657 6.2
21 Splunk 7.1 596 12.0
22 Pure Storage 3.0 565 5.3
23 Tableau 5.8 562 10.4
24 Zulily 2.9 490 6.0
25 Houzz 2.5 461 5.4
26 FireEye 4.7 432 11.0
27 Veeva 3.5 432 8.0
28 Stripe 1.8 431 4.1
29 Zillow 4.3 429 10.0
30 Yelp 4.0 361 11.0
31 Beats 3.0 359 8.4
32 Zenefits 0.5 353 1.4
33 Nutanix 2.0 352 5.7
Play Bigger TTMC 100
# Company nameMarket Cap
($Bn)TTMC Velocity
($Mn / Yr)
Company
Age (Yrs)
34 Instagram 0.7 315 2.3
35 Hulu 2.0 306 6.5
36 Zynga 2.4 301 8.0
37 Fab 1.0 279 3.6
38 Hortonworks 1.1 277 4.0
39 Guidewire 3.5 271 13.0
40 GrubHub 3.0 271 11.0
41 Yammer 1.2 270 4.5
42 MediaBank 1.5 262 5.7
43 HomeAway 2.8 256 11.0
44 Evernote 2.0 255 7.9
45 New Relic 1.6 254 6.3
46 Box 2.4 252 9.5
47 Honest 0.9 247 3.6
48 Pandora 3.7 246 15.0
49 Nicira Networks 1.3 227 5.6
50 Guilt Groupe 1.0 224 4.5
51 Zendesk 1.8 220 8.0
52 Tinder 0.5 220 2.3
53 JustFab 1.0 215 4.7
54 ZocDoc 1.6 214 7.5
55 TangoMe 1.1 211 5.2
Play Bigger TTMC 100
# Company nameMarket Cap
($Bn)TTMC Velocity
($Mn / Yr)
Company
Age (Yrs)
56 ActiFio 1.1 211 5.2
57 Kayak 1.8 203 8.9
58 Flipboard 0.8 203 3.9
59 Domo 0.8 201 4.1
60 Netezza 1.7 195 8.7
61 Slack 1.1 192 5.8
62 Waze 1.0 189 5.4
63 Hotwire 0.7 180 3.7
64 One Kings Lane 0.9 180 5.1
65 MongoDB 1.2 178 6.8
66 TrueCar 1.8 177 10.0
67 Meraki 1.2 174 6.9
68 LifeLock 1.7 173 10.0
69 Tumblr 1.1 172 6.4
70 Trulia 1.7 171 10.0
71 Quora 0.9 171 5.3
72 ExactTarget 2.3 170 13.5
73 Auction.com 1.2 167 7.2
74 GitHub 0.8 165 4.5
75 Instacart 0.4 163 2.5
76 Supernova 0.4 160 2.3
77 Viddy 0.4 160 2.3
Play Bigger TTMC 100
# Company nameMarket Cap
($Bn)TTMC Velocity
($Mn / Yr)
Company
Age (Yrs)
78 AppNexus 1.2 155 7.7
79 Castlight Health 1.1 151 7.0
80 Marketo 1.3 149 9.0
81 VEVO 0.7 144 4.5
82 ngmoco 0.4 144 2.8
83 Urban Compass 0.4 141 2.6
84 Ambarella 1.5 140 11.0
85 ArcSight 1.5 140 10.7
86 AirWatch 1.5 139 11.1
87 DocuSign 1.6 136 11.7
88 Jasper Wireless 1.4 136 10.3
89 Adify 0.3 134 2.2
90 Thing Daemon 0.6 133 4.5
91 Foursquare 0.7 131 5.0
92 Buddy Media 0.7 127 5.4
93 Twitch 1.0 127 7.6
94 Wayfair 1.6 127 13.0
95 Automattic 1.2 124 9.3
96 Eventbrite 1.0 122 8.2
97 Climate Corp 0.9 120 7.8
98 Braintree 0.8 119 6.7
99 Ipreo 1.0 118 8.3
100 Kabam 1.0 117 8.6
Play Bigger TTMC 100
© Play Bigger Advisors
TTMC Velocity ($M/Year)
US Companies, Founded Since 2000, VC backed, Valuation @Dec 31, 2014
Play Bigger TTMC 100
We salute these legendary companies,
the entrepreneurs who founded them,
the people who built them,
and the VCs who funded them.
Christopher Lochhead, Al Ramadan, Dave Peterson
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Appendix
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.
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.
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.
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.
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.
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.
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.
