Editor’s note: This article was first published in February 2014; all valuations, revenue and sales figures are from early 2014. Several of these companies have since gone public, including Zalando, GoPro, Xiaomi and Palantir, and others were acquired or closed, such as Jawbone.
The Wall Street Journal listed 30 new companies, little known to the public, valued at more than 1 billion dollars. The list included Pinterest, Dropbox, Spotify and Airbnb, which are hardly unknown at this point. So we’re using the follow-up selection by Business Insider, which picked out the ones it considered even less known. In truth, many of these companies can’t really be called new, but they have been growing strongly in recent years.
So it wouldn’t be surprising if, after being chosen by large investment firms for cash injections, some of them were listed on the stock market within a few years. Especially since there are listed companies that are far less profitable than the ones we’re about to name.
11. Coupons.com: valued at $1 billion
Based in Mountain View, California, and founded in 1998, this company has already filed the paperwork for an initial public offering (IPO). In the first nine months of 2013 it generated 115 million. The business is similar to Groupon’s, since it is based on discount coupons, although some say this company may have a more focused business than the main discount coupon companies, Groupon included. For now, the investors who have funded it have really high expectations for its future.
10. Sogou: valued at $1.2 billion
Based in Beijing, China, and founded in 2004, Sogou is a search engine that can search text, images, music and maps. More than 10 billion pages are said to have been searched through it. It also has a mechanism for detecting malicious software on websites, which gives cleaner search results. Frankly, I just see one more search engine among the thousands out there.
9. Jawbone: valued at $1.5 billion
Based in San Francisco, California, and founded in 1999, this company sells a kind of headset that was originally designed for the military as a way to cancel noise. Now it sells Bluetooth headsets and wireless speakers to music and exercise lovers all over the world.
8. Legendary Entertainment: valued at $1.5 billion
Based in Burbank, California, and founded in 2005, this production company achieved considerable success thanks to its involvement in co-producing The Dark Knight Batman trilogy. It is one of the first film production companies to partner with hedge fund investors, so it seems to be headed for success.
7. Stripe: valued at $1.8 billion
Based in San Francisco, California, and founded in 2010, this company helps businesses accept credit card payments in apps and on websites through its own software. Rumour has it that the company is in talks with Twitter about possible programmes that would let people buy things from tweets. It could also do very well out of mobile payments, one of the trends that are arriving this year to stay.
6. Woodman Labs: valued at $2.3 billion
Based in San Mateo, California, and founded in 2009, Woodman Labs is the company behind GoPro cameras, the small waterproof cameras that have become fashionable among surfers and extreme sports fans. The company sold 8.9% of itself to Foxconn Technology Group. Expectations for it are very high as a potential market opens up in China.
5. Bloom Energy: valued at $2.9 billion
Based in Sunnyvale, California, and founded in 2001, this company makes fuel cells called Bloom Boxes that produce clean energy. Its first customers were Walmart, FedEx and Coca-Cola. These boxes cost 750,000 dollars, although the company is expected to bring the price down to 3,000 dollars in less than 10 years. eBay is said to have bought five of them and saved 100,000 dollars in less than a year. The company’s proposal sounds interesting and would certainly do the environment a big favour, but many people think it is selling smoke and mirrors and that its business is not and never will be profitable. Then again, it could turn out to be the Steve Jobs of energy efficiency.
4. Fanatics: valued at $3.1 billion
Based in Jacksonville, Florida, and founded in 1995, this company feeds on the passion for sport, selling official sports league merchandise to fans. Sportswear is said to be one of the most profitable businesses, and the company is expected to keep growing next year. Personally, I just see one more clothing shop, although, it must be said, one that has managed to win over a large market. Hence its high valuation.
3. Zalando: valued at $4.9 billion
Based in Berlin, Germany, and founded in 2008, this company isn’t so unknown in Spain, as it is spending heavily on advertising there. Zalando is an online shop that sells clothing and fashion products (and lots of women’s shoes) in 14 European countries. It is expected to grow enormously over the next few years, especially if it decides to go out and conquer markets beyond Europe. Its model has been very well received by users.
2. Palantir: valued at $9 billion
Based in Palo Alto, California, and founded in 2004, Palantir makes software used by government agencies and financial companies, such as banks and hedge funds, to help sort through large amounts of information. Forbes reported that the US Navy uses this technology to anticipate insurgent attacks and for forensic analysis of roadside bombs. Palantir is expected to play an important role amid growing concern over our privacy.
1. Xiaomi: valued at $10 billion
Based in Beijing, China, and founded in 2010, Xiaomi designs and makes smartphones, apps and other consumer technology products. Its low-cost smartphones have been a huge success in China, with more than 18 million units sold last year. Together with Lenovo, it is one of the biggest threats to Apple’s business. One of the company’s competitive advantages is the hiring of Hugo Barra, a former Android executive who is doing a good job on international expansion. Its name is expected to be heard much more soon, given that it has been one of the fastest-growing companies in the world over the past two years.
Further reading
Featured image: Bloom Energy, CC BY 2.0, via Wikimedia Commons.
