SAN FRANCISCO (TheStreet) -- When it comes to startups, winners and losers are made in record speed, according to a new report from category design firm Play Bigger.
The report concluded that the time it takes a company to reach a public or private valuation milestone such as $500 million or $1 billion has been cut in half among venture-backed startups founded since 2000, with consumer-focused companies benefiting most from the acceleration.
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Specifically, the time it takes for a U.S.-based technology company founded in the period between 2009 and 2013 to reach a $1 billion market cap has improved to 2.9 years, nearly three times faster than the rate for companies created between 2000 to 2003 to hit the same mark. All told, there are 83 U.S. venture-backed companies founded since 2000 that have hit the $1 billion valuation mark, according to the report.
To arrive at its conclusions, Play Bigger analyzed data on 508,629 private companies, 18,430 private investors, 52,055 private mergers and acquisitions, and 51,889 venture capital financing rounds. The firm separated companies into three buckets: startups founded between 2000 and 2003, startups founded between 2004 and 2008, and startups founded between 2009 and 2013.
The report found that startups today are growing valuations at a rate of more than $350 million per year compared to $130 million per year in the 2000 era. The acceleration is even faster for consumer-focused companies, which are padding valuations by $600 million per year. Enterprise-centric startups, by comparison, are growing market caps by $100 million per year.