Category Archives: Start-up data

The largest technology companies in Europe and the USA in the last 10 years

It’s just after reading on Twitter that Google had just become a trillion dollar company (In honor of Google becoming a $1T company today), and also after reading Nicolas Colin’s concerns about European technology companies (Will Fragmentation Doom Europe to Another Lost Decade?) that I remembered I used to compare US and European tech former startups.

So here are my past tables and also a short synthesis in the end. The full data in pdf in the end too.

USA vs. Europe in 2020

USA vs. Europe in 2018

USA vs. Europe in 2016

USA vs. Europe in 2014

USA vs. Europe in 2012

USA vs. Europe in 2010

USA vs. Europe: the Synthesis over the decade

If you prefer to download it all and a little more: Top US Europe (in pdf)

Are GAFAs threatened? Their growth is still steady

It’s by reading Nicolas Colin’s always interesting newsletter, European Straits #149, 10 Tech Giants That Are (Almost All) in Bad Shape that I decided to revisit quickly the growth of 3 tech giants that I have been following for many years now: Google, Facebook and Tesla. And here are their numbers in terms of thousands of employees, revenue and profit in $M.

If you really love numbers, here is a little more: their average growth of 5 years is about 20% for Google, 40% for Facebook and about the same for Tesla (except that they never made a profit). Google is older so it is not a fair comparison. here is a more precise analysis.

So are the three tech giants threatened? I am not sure given this steady growth.

More data about equity in about 525 start-ups

Here is an updated version of my equity tables from startups which filed to go public at some point. There are about 525 individual companies as well as just below statistical synthesis relatively to fields, geography and periods of time about VC amounts, time to IPO, levels of sales and income at IPO (as well as PS and PE ratios), age of founders, number of founders, ownership in companies by catagories. I think ths may be of interest for some of you…

The analysis of 500+ startups

Following my traditional analysis of startups through their IPO filings documents (you can check my 2017 analysis on 400+ documents here or the tag #equity on this blog), here is an updated analysis with 500+ start-ups.

You can have a look at the full 500 cap. tables on scribd or look at a shorter synthesis which follows.I hope this is self-explanatory enough.

Uber finally files to go public – Here’s my cap. table

Uber’s S-1 has just been released. I jumped on the opportunity to analyze the shareholding of the startup, a thing I had tried to do in 2017 (with much less information – check here). Here are the figures that I found (subject to errors related to my possible too much eagerness…)


Uber cap. table – from the SEC S-1 published on April 12, 2019

And, if you do not have the courage to read my post What is the equity structure of Uber and Airbnb?, here is what I understood in March 2017:


Uber cap. table – A speculative exercise with very little information available

The Age of Founders of Start-ups – Again!

The age of founders of start-ups is a recurrent topic on this blog. You can just check it through hashtag #age. I have just updated my cap. table database with now 500 “famous-enough” companies for which I have compiled a lot of data. You can check here the most recent update with 450+ companies in mid 2018 – Some thoughts about European Tech. IPOs or a synthesis dated 2017 with 400 companies Equity in Startups.

I just looked at the age of 850 founders from these 500 companies. I think it is interesting. I hope you will agree… I am not even sure I need to comment much. Average age is 37 overall, 45 in biotech, 37 in hardware (electronics, telecom and computers, energy) and 32 in software/internet.

Fascinating data analyses on start-ups by Sebastian Quintero

I just read about Sebastian Quintero’s data analyses on start-ups on his web site Towards Data Science. Thanks Martin H. 🙂 I was really fascinated about his original way of looking at them, their failure rate, the valuation prediction, their runway between rounds, and his Capital Concentration Index or Investor Cluster Score. You should read them.

Of course, it rang strong bells with all the data analyses I have done in the recent past 8see end of the post if you wish)

So as an appetizer to Quintero‘s work, here are a couple of figures taken from his site…

Dissecting startup failure rates by stage

Predicting a Startup Valuation with Data Science

How much runway should you target between financing rounds?

Introducing the Capital Concentration Indexℱ

Where c is the percentage capital share held by the i-th startup, and N is the total number of startups in the defined set. In general, the CCI approaches zero when a sector consists of a large number of startups with relatively equal levels of capital, and reaches a maximum of 10,000 when a sector’s total invested capital is consolidated in a single company. The CCI increases both as the number of startups in the sector decreases and as the disparity in capital traction between those startups increases.

Introducing the Investor Cluster Scoreℱ — a measure of the signal produced by a startup’s capitalization table

As of my own analysis, here are a couple of links…

My papers on arxiv:
– Are Biotechnology Startups Different? https://arxiv.org/abs/1805.12108
– Equity in Startups https://arxiv.org/abs/1711.00661
– Startups and Stanford University https://arxiv.org/abs/1711.00644

or on SSRN
– Age and Experience of High-tech Entrepreneurs http://dx.doi.org/10.2139/ssrn.2416888
– Serial Entrepreneurs: Are They Better? – A View from Stanford University Alumni http://dx.doi.org/10.2139/ssrn.2416888
– Start-Ups at EPFL. An Analysis of EPFL’s Spin-Offs and Its Entrepreneurial Ecosystems Over 30 Years https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3317131

2019, the year of Unicorns IPO Filings: is Lyft the beginning of the end?

Lyft is the first Unicorn which published its S-1 document, i.e. its IPO filing. Is this good news or bad news? Lyft is impressive, two founders who were 22 and 23 when they co-founded their start-up 12 years ago have reached more than $2B in sales with a little less than 5’000 employees in 2018. This is the good part. The less good piece is it took the company more than $5B in equity investment and the reason is simple: Lyft has lost $900M in 2018, and more than $600M in both 2017 and 2016. This is more than $2B cumulative loss. I assume losses were pretty high in the previous years too. YOu can have a look at the cap. table I built from the S-1:

I read recently an article by Tim O’Reilly: The fundamental problem with Silicon Valley’s favorite growth strategy. O’Reilly has doubts about Reid Hoffman and Chris Yeh’s claiming that Blitzscaling would be the secret of success for today’s technology businesses. “Imagine, for a moment, a world in which Uber and Lyft hadn’t been able to raise billions of dollars in a winner-takes-all race to dominate the online ride-hailing market. How might that market have developed differently?” I have the same doubts about this crazy strategy but who am I to say?…

Swiss Startups : new analyzes, without real surprise …

A new and interesting report on Swiss startups has just been published by Startupticker, the Swiss Startup Radar.

It shows a fairly new information, the number of startup created a year, about 300,

and their slow growth …

Interesting testimonials also:

Is it due to the much-cited conditions? (Page 80)
No, Switzerland’s regulatory and fiscal framework is first-rate. But I identify two deficits in the support services available in Switzerland: first, there is a lack of contact points for entrepreneurs in the low and no-tech sectors, and, second, we tend to address young people.

More money is one thing, but is it spent differently? Page 89)
In Switzerland, I observe a strong focus on the survival rate. Startups are encouraged if they have collateral, such as patents, and take a cautious course. As a result, eight out of 10 startups from ETH Zurich are still active five years after their foundation. In Israel, on the other hand, more attention is paid to the economic impact. What matters when assessing a project is the prospect of growth and the creation of new jobs.

The awareness that investing in startups can lead to losses is undoubtedly more pronounced in Israel. This is particularly evident in the financing of very young projects. In Switzerland, seed rounds are worked on with thick business plans, PowerPoint presentations and sales projections. In Israel, this paper war has been largely dispensed with. The business angels and VCs accept that there can be no absolute security in the high-tech segment.

In an article by Techcrunch, 30 European startup CEOs call for better stock option policies, we also talk about the gaps in the framework conditions in Switzerland:

with the following recommendations:
1. Create a stock option scheme that is open to as many startups and employees as possible, offering favourable treatment in terms of regulation and taxation. Design a scheme based on existing models in the UK, Estonia or France to avoid further fragmentation and complexity.
2. Allow startups to issue stock options with non-voting rights, to avoid the burden of having to consult large numbers of minority shareholders.
3. Defer employee taxation to the point of sale of shares, when employees receive cash benefit for the first time.
4. Allow startups to issue stock options based on an accepted ‘fair market valuation’, which removes tax uncertainty.
5. Apply capital gains (or better) tax rates to employee share sales.
6. Reduce or remove corporate taxes associated with the use of stock options.

Google is 20 years old

Google was incorporated in California on September 4, 1998 so the company is just 20 years old today. The technology is older, it was called BackRub initially (in 1996) and was an internal web site at Stanford University, google.stanford.edu and in September 1997, google.com was registered as an independant web site. You can see below some historic images

and the various logos.

There’ve been many books about Google, some of them are great. I blogged about most of them, Work Rules! a few weeks ago, In The Plex in mid 2015, How Google Works in late 2014, Dogfight in early 2014, I’m Feeling Lucky in 2012. Indeed I blogged a lot about the company as you may see from the Google tag.

If Fairchild was the emblematic Silicon Valley company, founded in the 50s, it was followed by Intel in the 60s, Apple, in the 70s, the 80s have seen Cisco and Sun Microsystems, and Google symbolizes the 90s (Yahoo might be forgotten soon). Facebook belongs to the 2000s, the 2010 decade is still open I think. But the lessons learnt from the years of Google are just unique. The technology, the product, the startup growth, the teams have just changed the way we look at business for good and sometimes bad….