Money for nothing?

Ever heard of Jingdong, Nutanix or Zalando? No nor me, and Dennis K Berman, the business editor of the Wall Street Journal hasn’t either. In a recent blog Dennis posed the same question and then revealed that they are members of the exclusive ‘Billion Dollar Startup Club’.

A colleague of Dennis’, Scott Austin has ranked these starts up using data from Dow Jones VentureSource, which uses values assigned by venture capitalists.

In the top ten are six companies that I’ve never heard of. Of course, I’m not saying that I know everything there is know about startups, but during my time in technology PR I’ve come across a few. Of the names that I have heard of  – Square, Spotify, Pinterest and Dropbox – only one, Dropbox, is in the top five (number two) and the others occupy number ten, seven and eight respectively.

Since most of them are low profile, this raises the question whether their business models are able to generate revenues to support their venture capital valuations. For those old enough to remember this is what caused the first dotcom boom and bust.

According to Berman the list contains more US companies valued at billion dollars than during the last dotcom bubble. The good news however is that many of these billion dollar companies are in much better financial shape than their peers back in 1999/2000 and some are even generating sizeable revenues. Take Dropbox, according to Berman its making $200 million in annual sales.

Since the list is no longer exclusive and with new and ‘unheard’ off companies being added all the time, it looks like the interest in startups is back to dotcom days. Let’s hope that this time there is no bubble, only startups that grow up.

Browse more blog posts

Posted on
byClaire James
Chris Linsell left university with a degree in Economics and Finance but knew that this was not where his true interests lay. In 2004 he joined an independent creative advertising agency called Mustoes and has not looked back since. Q: Tell me a little bit about your background before joining Pirtek as Marketing Director Chris. A: As a graduate I...
Posted on
byLaaraib Khan
Why was PR your chosen career? I have always loved writing and all things creative. I remember in year 4 gathering a few people together and starting the school newspaper! Having dabbled in social media, digital marketing and music journalism, I fell into PR and have loved every second of it! If you hadn’t chosen a career in PR, what would...
Posted on
bySkout team
Why was PR your chosen career? It wasn’t! I have always been slightly obsessed with the media though. Since reading the news in the mocked-up news studio at Bradford’s National Media Museum as a child, the addiction has stuck. I worked in TV and broadcast media in Beijing for four years (which was an eye-opener) before coming back to the...
Posted on
byJames Weaver
On Sunday 31st July, England’s Lionesses ended 56 years of hurt by overcoming the goliath task of beating Germany 2-1 in the European Championship final to finally bring football home. It was fantastic to watch the team storm the post-match press conference to celebrate their well-deserved victory.  This got me thinking, how does one of the greatest sporting achievements for...
Posted on
byRebecca Brown
Whether you’re in B2B or B2C, promoting your brand and engaging with your audience through social media is marketing 101. It’s fast, free, and effective! Not only can you post updates about your company and employees to showcase the successes and personality of your brand but it’s an excellent way of sharing valuable content with key audiences. It’s no surprise that...
Posted on
byJames Weaver
London is often considered the epicentre for many of the UK’s varying sectors from entertainment to finance. But, when it comes to the tech sector, the North West stronghold of Manchester is arguably a hotbed for talent, startups and established tech firms. In 2019, £181 million of investment was pumped into the city’s tech sector, establishing Manchester as one of...
Posted on
byRebecca Brown
We chat with Lizzie Berwick, director and co-owner at media buying agency, MacCormack Media, about her varied role, all things media buying, and what makes a brilliant business relationship.
Posted on
byClaire James
By Claire James, head of client services and built environment specialist, Skout The construction industry is about to go through its most transformative phase for decades with the introduction of the Building Safety Act. These changes are driven by the still unfolding story of Grenfell, the public outcry, and the substandard building materials and practices used on this structure that...
Posted on
byRebecca Brown
More than half of B2B marketing budgets are devoted to building and maintaining relationships with new customers, but only a quarter of B2B marketers say their relationships are akin to a happy marriage.
Posted on
byRob
When you’ve worked in a B2B PR agency for over 25 years, it’s easy to forget that the ‘turbulence’ we experience daily isn’t the norm for many. This is because every agency day is different, you never fully know what to expect, and deadlines can be ludicrously short.  Growing agencies like us deal with a lot of uncertainty. The biggest...