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Venture Backed Companies in Fortune 500 (view source)
Revision as of 13:40, 21 September 2020
, 13:40, 21 September 2020no edit summary
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The goal of Venture Capital is to stimulate growing businesses by providing capital with the expectation of appreciation. Venture capitalists will invest in whichever businesses they see fit. While the precise definition of "fit" companies varies by venture capitalist, there are industry-wide trends. Take, for instance, the dot com boom. In that time period, Venture Capital reached an all time high of $27M in 1999 [https://www.statista.com/chart/2732/venture-capital-investments-in-the-us/]. Like in any other market, there are trends in VC investment. Moreover, these trends tend to reflect greater movements within the economy (as we saw with the boom in '99-'01, the decline in the recession).
===Medical, Health, and Life Sciences===
MHLS companies have generally performed well, but experience less rapid growth than Information Technology firms. Within the MHLS, there is a tale of two subclasses: MHLS subclass (traditional healthcare providers/hospitals) and Biotech firms. *MHLS Industry firms waited an average of 22 years before reaching the Fortune 500. Compared to the IT figure of 14 years, or the Non-High tech figure of 29. *Since 2007, Biotech firms have experienced more rapid and sustained growth than their traditional counterparts within the MHLS sector. Currently, 80% of all VC backed biotech firms that have reached the fortune 500 remain, compared to around 50% of MHLS subclass. *Traditional health providers post consistently stable growth rates, and rarely surprise. Just over half of traditional MHLS firms stay in the F500 for more than 15 years. *Biotech firms wait for a while to enter the Fortune 500. On average, these companies wait 25 years before reaching the F500. Compared to MHLS subclass companies, a Biotech business waits five extra years before reaching the F500.
===Non-High Technology===
Non-High Technology firms have been the slowest, but steadiest growing group. While there are few venture backed NHT firmsin the Fortune 500, they've become these are well-established brands in Consumer Discretionary fields, primarily.
* 42% of F500 NHT firms that have received VC investment remain in the Fortune 500. Moreover, these 42% average around 20 years in the Fortune 500. This is well above the average
* While these companies aren't traditionally the most rapidly growing, their solvency is proven well before reaching the F500. Most NHT firms wait 29 years before reaching the Fortune 500. * Once they arrive, NHT firms stick around for a pretty short period of time. Their average of 9 years within the F500 is the lowest of all VC backed companies
== Moving on: Summer/ Fall 2016==
There are a few avenues down which we can continue researching this topic
