Featured Articles

LG G Watch R ships in two weeks

LG G Watch R ships in two weeks

The LG G Watch R, the first Android Wear watch with a truly round face, is coming soon and judging by…

More...
LG unveils NUCLUN big.LITTLE SoC

LG unveils NUCLUN big.LITTLE SoC

LG has officially announced its first smartphone SoC, the NUCLUN, formerly known as the Odin.

More...
Microsoft moves 2.4 million Xbox Ones

Microsoft moves 2.4 million Xbox Ones

Microsoft has announced that it move 2.4 million consoles in fiscal year 2015 Q1. The announcement came with the latest financial…

More...
Gainward GTX 970 Phantom previewed

Gainward GTX 970 Phantom previewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
EVGA GTX 970 SC ACX 2.0 reviewed

EVGA GTX 970 SC ACX 2.0 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Wednesday, 02 May 2012 13:26

Micro companies worth a billion are here

Written by Nick Farrell



Thank you internet


Billion dollar companies with few employees are finally with us according to analysts Magister Advisors, M&A advisors to the technology industry.

In a report the company claimed that there were a new breed of super-efficient technology companies emerging which took advantage of near-free distribution channels. The report points to the recent acquisitions and IPO valuations to prove it. 

Facebook’s acquisition of Instagram was a case study.  The company had 13 staff and was worth a billion dollars. Facebook’s value implies that each employee for its own business of $33 million.  Microsoft, by contrast, has a value per employee of $3 million.

Victor Basta, managing director of Magister Advisors, said: “The potential for this new breed of super-efficient companies to accelerate revenue generation is unprecedented. Microsoft went from zero to $1 million revenues in 3 years.  Facebook, by comparison, went from zero to $150 million revenues in 3 years, representing a 40-fold acceleration in real terms.  This will only get easier and faster for the right idea.”



Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments