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Tech Startups and Billionaires: The Growing Trend
Even though many people are still struggling to make ends meet, the Forbes magazine has recently shown that there are now more billionaires and millionaires than ever. Not only that, but many of these billionaires are having a much easier time amassing their wealth. While it’s unlikely that this success will be duplicated, knowing how they made their money can be useful to someone with the entrepreneurial spirit.
Newest Billionaires
Did you know that only two percent of billionaires on the Forbes list are under 40 years old? Not only that, but most of them are new billionaires that didn’t rely on their families for their money. Another interesting similarity is what type of companies they are starting.
Nearly all of these new billionaires had tech startup companies that rapidly expanded. For example, the owners of Facebook and Google are on this list. While they are known as big companies now, they both started as small ventures that were expected to have moderate success.
IPO Starting Gates
Aside from properly growing their companies and becoming incredibly popular, many of these tech startups made money on the stock market as soon as they went public. Most companies that go public start with a modest valuation and slowly climb to the top. That’s not the case with these tech companies.
Google started with an initial valuation of $85 per share. The shares are now worth more than $1,000 each. The shares are expected to increase throughout the years. Facebook started at $38 per share, which many said was more than what the company was really worth. While the stock initially fell, it’s now worth over $60 per share.
Many are saying that this is reminiscent of the dotcom bubble that happened when online companies first became popular. The major difference now is that these are real and stable companies, whereas the dotcom bubble was full of scammers who made companies to capitalize on the trend.
The majority of new billionaires are investing in tech startup companies and growing them at a rapid pace before putting them on the stock market. While some say this is just a trend, the truth is that these owners have made billions with very stable companies that are sure to be popular for years.
Tech Startups and Billionaires
Source: Business Management Degree Guide
