Deloitte Releases 2016 Fast 500 List

 

SAN FRANCISCO — Consulting and accounting firm Deloitte has released the 2016 Technology Fast 500, an annual ranking of the fastest growing North American companies in the technology, media, telecommunications, life sciences and energy tech sectors.

Loot Crate claimed the No. 1 spot with a growth rate of 66,661 percent from 2012 to 2015.

Based in Los Angeles, Loot Crate delivers monthly curated mystery boxes of entertainment and pop culture themed collectibles to fans. Founded in 2012, Loot Crate has more than 650,000 subscribers worldwide in 35 countries. Loot Crate’s position at the top of this year’s list showcases how innovation isn’t always about new technology and invention, but also about ingenuity, the recombining of existing assets and know-how in new ways to maximize value.

20% of the Fast 500 list is made up of companies in the Bay Area. Doximity, based in San Francisco, was the highest ranking area company on the list at No. 6 with 14,350% growth. Gainsight, based in Redwood City, was right behind at No. 7 with growth rate of 12,730%.

Companies chosen on the list are based on percentage fiscal year revenue growth from 2012 to 2015. Overall, 2016 Technology Fast 500 companies achieved revenue growth ranging from 121 percent to 66,661 percent in the 2012 to 2015 time frame, with a median growth of 290 percent.

“Our personal and professional lives are shifting in response to new technologies and business models that are changing the way we work and live,” said Sandra Shirai, principal, Deloitte Consulting LLP and U.S. technology, media and telecommunications leader. “The 2016 Technology Fast 500 winners are supporting this shift by creating experiences for their customers, surpassing expected possibilities and helping to envision even more effective and ingenious solutions. Loot Crate is just one example of how effective organizations face disruption with confidence, striving to understand and harness the potential to propel forward. That means taking risks, encouraging experimentation and embracing transformation.”

 

The top 10 ranked companies are as follows:

2016 Rank

Company

Sector

Revenue
Growth
(2012 to
2015)

City, State

1

Loot Crate

Digital content/

media/entertainment

66,661 percent

Los Angeles, CA

2

Yieldbot

Digital content/

media/entertainment

39,783 percent

New York, NY

3

Ariad Pharmaceuticals, Inc.

Biotechnology/pharmaceutical

21,191 percent

Cambridge, MA

4

SearchMarketers.com

Digital content/

media/entertainment

16,547 percent

Irvine, CA

5

BounceX

Software

14,575 percent

New York, NY

6

Doximity

Software

14,350 percent

San Francisco, CA

7

Gainsight

Software

12,730 percent

Redwood City, CA

8

Lexicon Pharmaceuticals Inc.

Biotechnology/pharmaceutical

11,839 percent

The Woodlands, TX

9

Datadog

Software

10,303 percent

New York, NY

10

AppLovin

Software

10,276 percent

Palo Alto, CA

Regional innovation remains strong
Deloitte’s Technology Fast 500 winners hail from cities far and wide across North America – from Los Angelesto New York to Canada. Of the dozens of locations represented on the list, some have a particularly strong track record of turning out successful, fast growing companies that are releasing new, emerging technologies.

Silicon Valley, well-known as an innovation hot spot, continues to lead in representation with 20 percent of the companies on the list, with 63 percent of those in the software industry. The New York Metro area and theGreater Los Angeles area came in next, with 17 and 8 percent respectively of companies on the list in software and digital content, and the media and entertainment sectors. Rounding out the top five markets, the District of Columbia dominated in software and New England in software and biotech.

Following is a list of innovative cities with a significant concentration of winners:

Location

Percentage of List

Fastest-
Growing
Company in
the Region

Overall Company Ranking

Dominate Sectors in
Location

San Francisco

Bay Area

20
percent

Doximity

7

Software 63 percent

New York Metro Area

17
percent

Yieldbot 

2

Software 47 percent; digital/ content/media/entertainment 25 percent

Greater Los Angeles Area

8
percent

Loot Crate

1

Software 49 percent; digital/ content/media entertainment 27 percent

Washington, D.C.

6
percent

Supernus Pharmaceuticals, Inc.

12

Software 63 percent

New England

5
percent

Ariad Pharmaceuticals, Inc.

3

Software 44 percent; biotech 33 percent

Software companies maintain 21-year stronghold
Software continues to have the greatest impact across technology sectors, representing 58 percent of the entire list and five of the top 10 winners overall. Of the private companies, 44 percent identified themselves in software as a service (SaaS), 24 percent in enterprise software and 10 percent in security. Since the creation of the ranking, each year software companies have made up the majority of winners, with a median growth rate of 275 percent this year.

Furthermore, biotechnology/pharmaceutical companies make up the second most prevalent sector in this year’s rankings, comprising 13 percent of the Technology Fast 500. Digital content, media and entertainment companies follow next with 12 percent of companies representing this year’s list and a median growth rate of 544 percent.

The percentage of companies from industry sectors represented on the Technology Fast 500 are as follows:

Sector

Percentage

Sector Leader

Median Revenue
Growth (2012 to
2015) 

Software 

58 percent

BounceX

275 percent

Biotechnology/ pharmaceutical 

13 percent

Ariad Pharmaceuticals, Inc. 

428 percent

Digital content/media/ entertainment

12 percent

Loot Crate

544 percent

Medical devices

5 percent

Strata Skin Sciences, Inc.

255 percent

Communications/ networking

5 percent

MacStadium, Inc.

199 percent

Electronic devices/ hardware 

4 percent

FORM Holdings Corp.

290 percent

Semiconductor

2 percent

Movidius

209 percent

Energy tech

1 percent

Norbachi

215 percent

Majority of companies received venture backing
In the 2016 rankings, 68 percent of the companies were backed by venture capitalists at some point in their company history. Notably, eight of the top 10 companies on the Technology Fast 500 received venture funding.

“Investors continue to remain confident in North American technology companies. Companies that enhance efficiencies through new technologies, enter new markets, and develop new products and business models are the ones who sustain fundraising and will provide a significant return on investment. These are the rising stars,” said Jim Atwell, partner, Deloitte & Touche LLP, and national managing partner of the emerging growth company practice. “The industry understands that while innovation entails taking risks, the absence of innovation is riskier. This is something the Technology Fast 500 winners recognize as they continue to grow and move their companies forward.”

For additional details on the Technology Fast 500, including the complete list and qualifying criteria, visit www.fast500.com.