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20 Amazing Companies Founded During The Financial Crisis

20 Amazing Companies Founded During The Financial Crisis

Jan 22 2014, 9:16am CST | by

20 Amazing Companies That Were Founded During The Financial Crisis Of the 100 companies listed on our annual America’s Most Promising List, around a third were forged in the doom and gloom years...

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26 weeks ago

20 Amazing Companies Founded During The Financial Crisis

Jan 22 2014, 9:16am CST | by

20 Amazing Companies That Were Founded During The Financial Crisis

Of the 100 companies listed on our annual America’s Most Promising List, around a third were forged in the doom and gloom years of the global financial crisis. How did these companies achieve extraordinary growth when others were in freefall? Here some of the CEOs tell us how they turned starting out in a bleak economy to their advantage.

“Scarcity of capital is like draught season in the Serengeti,” says Jed Yueh, CEO of Delphix, which develops database software that helps reducing processing time and storage requirements. The company has raised $45.5 million from Greylock Partners, Lightspeed Venture Partners and others. “As conditions improved, companies that survived benefitted from having fewer competitors. Or in our case, it’s one of the reasons we still don’t have any direct competitors,” he says.

It was a time when guests were buckling their belts, paying closer attention to their budgets and seeking more value from restaurant options. This was how the fast casual movement was born,” says Scott Crane, founder of Smashburger, our No. 6 ranked company which did $228 million in revenue last year.

“Real estate was more affordable during this time, so we were able to take advantage of better economics and key locations we would not have been able to access to prior to the recession given the newness of our brand and lack of a national/regional presence,” he says.

A key advantage was that everything was cheaper in 2007 and 2008.  “We were able to acquire smaller companies for very favorable multiples since there was less competition bidding for these businesses.  Moreover, their limited access to capital stunted their growth allowing us to gain leverage very quickly once they were part of XL Marketing,” said David A. Steinberg, CEO of Zeta Interactive, which was previously XL Marketing.

“As businesses were shutting down and liquidating, we took advantage and purchased all of our office furniture and equipment at dirt cheap prices,” said David Allerby, CEO of 24Hr HomeCare, a rapidly expanding in-home elderly care business.

It also forced companies to do more with less. “Not having access to capital forced us to say no to many of the ideas we thought were great at the time. Likewise, our attention to detail and focus on measurable results have enabled us to grow and maintain a competitive advantage in the marketplace,” said Doron Reuveni, founder and CEO of uTest, our No. 7 ranked company which tests for bugs in clients’ software using a pool of 100,000 part-time testers across the globe. The company will rebrand as Applause this year.

Brian Williams, the CEO of OneSource Virtual, our No. 24 ranked company, which helps companies outsource backroom jobs like accounting agreed that not having access to venture capital injected a sense of discipline early on. “In 2008 access to money for a startup was very limited. This forced the OneSource Virtual executive team to be disciplined with every dollar we spent, as well as disciplined with every decision we made,” he says.

“Not having access to capital forced us to say no to many of the ideas we thought were great at the time. Likewise, our attention to detail and focus on measurable results have enabled us to grow and maintain a competitive advantage in the marketplace,” he added.

“Raising too much capital too soon can impair a company’s operating efficiency as hard decisions about capital allocation are not made.  We’ve been fastidious about how we deploy our capital from Day 1 and have always focused on building a strong core,” said, Omar Tawakol CEO of BlueKai, our No.13 ranked company which reported revenue of $64 million for 2013.

“We succeeded because we bet the farm on a high growth market, specifically Apple's new iPhone and App Store,” says Jeff Smith, CEO of Smule which we ranked No. 29. Smule reported revenue of $21 million last year. The company makes music creation apps for mobile phones and tablets.

“At the same time we were launching Smule in ’08, I recall my stock broker telling me to sell all of my Apple stock because it was a luxury brand and as a result they would be the first to get hit by the great recession.  Good thing I didn’t listen to him,” he adds.

Source: Forbes Business

 
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7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was to ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by th ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk S ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million i ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minis ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocatio ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Ba ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
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1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinra ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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