The Wall Street Journal has come up with its third annual ranking of the top 50 companies that are backed by venture capitalists. Surprisingly its results reveal the truth that startup companies focus less on consumers today than they did in the past. The top three companies as ranked by Wall Street are Genband Inc, Xirros Inc, and Tabula Inc. all of them being makers of business products.
Some other companies present on the list are Nimble Storage Inc., which is a data storage company, (ranked at 26) Marketo Inc, a business analytics software provider (ranked at 20)Appirio, a cloud computing service provider(ranked at 29) and Aerohive Networks Inc, a wireless network company (ranked at no 37).
Again surprisingly we do not find any companies from the energy sector on the list this year.
Apart from this, this is the first annual ranking where the list was not topped by a company from the department of health care.
Though more than 5900 candidates were considered for the ranking, the list of top 50 companies does not include companies like Twitter, Dropbox or Pinterest which are high profile companies. The companies compiled here include only those that are valued at less than a $ 1 billion, since the aim of this ranking is to identify those startups that are lesser known. Further these companies compiled here are those that are based in the US with an equity round of financing in the past three years. The companies ranked here by Wall Street have been compiled by the research firm VentureSource. In fact both Wall Street and VentureSource have been owned by NewsCorp.
These companies were ranked on the basis of their success in fundraising, recent value growth, good record of founders and board members, knowledge of their products and financial performance. Of the 50 companies ranked here 29 of them have entered the list for the first time. This reveals how the landscape for technology startups is continuing to evolve with new contenders emerging each year.
Six companies that were present in the list last year have held initial public offerings. Four other companies from the list last year have been acquired. The list was topped by Castlight Health Inc., However with the health care industry having lost its favour among venture capitalists, the company is no longer in the list this year. Health Care companies have fallen down to a mere five this year.
Donuts Inc having started last year was the youngest on the list while Neuorpace, started in 1997 was the oldest. The funds received by these 50 companies varied from a$26 to a $500 million. The list also contains some consumer internet companies in spite of investors recently pulling back from web startup companies.
37 of the companies present in this list have their headquarters based in California. The largest share of Venture Capitals has been invested here.