For more than 22 years, Deloitte’s Technology Fast 500 program has recognized the fastest growing public and private technology, life sciences and energy tech companies in North America. These tech companies are on the cutting edge and are using technology to transform how business is conducted and /or our quality of life. Making the list is no small feat, considering in order to make the current year list, companies needed a growth rate in excess of 120%. With this context, we should all feel proud that the So Cal ecosystem is thriving.
“While software continues to be the leading sector for technology growth based on the winners, we have observed an increasing trend in the So Cal marketplace of fast growing digital content/media/entertainment companies spurning growth, with 25% of our So Cal winners being in this sector – all of these companies were founded less than 9 years ago and 7 of them are newly recognized FAST 500 winners.”
This year, we celebrated 41 companies being recognized on the FAST 500 list and 11 companies are in the top 100. Additionally, 21 of the companies that we recognized are new to the FAST 500 list. Our winners demonstrate impressive growth year after year, as evidenced by 14 of our So Cal-based companies being recognized for two or more consecutive years, with almost half being recognized as a winner previously. The strength of the region in which we do business is powered by the sustained innovation and growth of these companies. For the third time since program inception, the honor of the fastest growing company in North America went to a So Cal-based organization – this year’s winner is Loot Crate.
While software continues to be the leading sector for technology growth based on the winners, we have observed an increasing trend in the So Cal marketplace of fast growing digital content/media/entertainment companies spurning growth, with 25% of our So Cal winners being in this sector – all of these companies were founded less than 9 years ago and 7 of them are newly recognized FAST 500 winners.
We discussed several topics with our FAST 500 winners and had the following observations and takeaways:
The majority of the companies are focused on revenue growth with cost management, a prioritization of the North American geographic region as the primary marketplace, and aspirations for measured international expansion. All of the companies have a positive business outlook for 2017.
Top Business Challenges
The challenges expressed are interestingly fairly consistent: investments in information systems and technology (including timing, selection, and amount); maximizing digital technologies for growth; difficulties in finding, competing for, and retaining skilled talent across a broad range of needs; and financing and working capital management, including having the applicable liquidity and access to capital to fund growth.
Keys to Success
While there are many paths to success and the approach to developing and growing the business has nuanced across the winners, observations may likely suggest the following are elements that have been instrumental: a passionate executive team that believes in their services/products; a strong board with relevant experience to help set strategy and direction for management; a service or product that makes life easier or enhances the customer’s quality of life experience; and a willingness to fail, fail quickly, learn, and repeat often.
“The So Cal ecosystem of innovation and growth is a demonstrably solid contributor to the growth and positive economic impacts of the North American landscape.”
The So Cal ecosystem of innovation and growth is a demonstrably solid contributor to the growth and positive economic impacts of the North American landscape. Congratulations to all of the FAST 500 winners that continue to create opportunities and keep the So Cal market vibrant. Please join me in celebrating our winners and we all look forward to continued success as they endeavor to be repeat winners.
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