Paysa’s 2017 CompanyRank – A Watch List for Employees, Job Seekers and Investors
Looking to Find the Money? Follow the Talent.
VC firms all have their own unique investment criteria – they are not all created equal. What makes a great tech company great? And how do they attract the VC or angel funding they need to build the company and ultimately achieve a successful IPO or acquisition?
One thing that seems to be true across the board is that VC firms do not just want to believe in a company’s idea or the management team, they want to know the company can develop the idea and sustain that development over time with top tier tech talent. And the same goes for job seekers and employees – if they see that a tech team is rock solid, they want to be part of it. If that’s not the case, not so much.
According to Garage Technology Ventures, in a blog post entitled, Top-Ten Lessons from the U.S. Navy What Entrepreneurs and Executives Can Learn from Sailors, a key takeaway is that it’s not just about having one or two Top Guns. “Every single person counts on other members of the team to enable them to get their part of the job done, and no one person can take credit for success, or benefit from another’s failure.” If you think about this in start-up terms, this team and operational performance translates into the ability to attract, hire and retain the top tech talent.
“As much as Top Gun creates the impression that it’s about competing to be Number 1, the ethic in an actual operating situation is intensely about team performance.”
According to Paysa’s latest CompanyRank report, it’s is clear that this analogy rings true – and you can see it when you look at how money follows talent.
Case in point, Jet, which was acquired by Wal-Mart last year for $3.3 Billion in Cash, Stock, has really risen through the ranks over the past year since that acquisition.
Jet was ranked #467 in 2016 and has climbed to #100 in 2017, with a 78% increase in CompanyRank. Jet is helping add to Wal-Mart’s success with a stock price that reflects that growth.
On the pre-IPO front, Spotify has increased in rank by 82% from #120 in 2016 to #22 in 2017 and has raised $1.56B in Total Equity Funding in 8 rounds from 30 investors according to CrunchBase.
Jason M. Lemkin, Co-founder/CEO at EchoSign (acquired by Adobe), on Quora, on what VC’s look for, also validates that VCs want to see that the company can recruit a great team blended with a variety of factors such as having a great CEO, a real market and market pull, dominance or the potential for dominance or partial dominance in market position and a new/changing/evolving category.
The infographic that follows below details the biggest winners of top tech talent, the companies that saw the most dramatic improvement overall, between April 2016 and April 2017, which is reflected in their Paysa CompanyRank.
It also covers key industries that seen the most disruption recently and which disruptors are continuing to climb in rank and beating out other companies in their same categories in the war for tech talent.
Is it surprising or the natural course of things that companies across industries from Media to Education to eCommerce to Wealth Management and FinTech, are winning tech talent away from some of the key tech players?
It’s interesting to note that Google, Amazon, Microsoft, Facebook and Twitter, which were started in a dorm room or a garage or, in any case, came from the same type of humble beginnings and now have grown to critical mass are just not where they used to be when it comes to Paysa CompanyRank. And they are starting to see the flight of their employees to companies that are seeing dramatic improvements in CompanyRank.
But the 10 companies that saw the greatest flight of technology and engineering professionals, overall, include Avant! Corp, Counsyl, Foursquare, Prosper Marketplace, NetSuite, Dimension Data, Couchbase, Broadcom and Lookout.
For VCs and individual investors – as well as employees who want to do the best for themselves and their families – it’s all about being able to see the earliest signs of a company’s success or demise.
Everyone knows that the top companies are the top companies – but they’ve already been through their days of the greatest growth. It’s the early investors or employees that get in at the right time that stand to win the most.
According to comments from Paysa’s CEO Chris Bolte, in a press release just out today that details the latest CompanyRank research, “Money always follows talent. For example, a start-up like Slack, with $540M in total equity funding, has seen a dramatic shift – climbing 95 percent to #21 in 2017, making it a company to consider today. On the other hand, a company like FireEye has shown a decrease in CompanyRank by 73% — though it might have had better than expected stock performance, financial experts say it is also still losing money — that dip is also being validated by its plunge in CompanyRank.”
Paysa’s CompanyRank uses an algorithm that measures the quality of technical talent at a company over time, based on our analysis of 7.45 million job changes across 198,000 companies over the past 15+ years.
For your next job move or investment decision, it’s key to know which companies are the ones to watch. Paysa CompanyRank is one way to see the earliest indicators of a company’s future success or its current or eventual decline.