From Zero to $1B in Less Than Five Years
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CRAIN’S® NEW YORK BUSINESS VOL. XXX, NO. 41 WWW.CRAINSNEWYORK.COM OCTOBER 13-19, 2014 PRICE: $3.00 50 They run New York’s From zero fastest-growing companies MEET ALL 50 OF THEM, INCLUDING #1, STARTING ON PAGE 16 to $1B in #14 less than YEXT: Howard Lerman found a five years big opportunity #4 correcting outdated NEOSTEM: information about Acquisitions have businesses online. helped Dr. Robin L. First billion-dollar Smith grow her cell-therapy startups prove startup 7,998%. New York firms can grow at warp speed BY MATTHEW FLAMM When Kevin Ryan was building DoubleClick in the late 1990s, he #47 couldn’t persuade a single West SHUTTERSTOCK: Jon Oringer’s customers Coast executive to quit his job and downloaded 100 million move to New York to work at the pictures last year. ad-tech pioneer. There are many reasons why he and other local en- trepreneurs don’t have that prob- lem now, but a summary might boil down to the growth in New York’s billion-dollar valuation club. Granted, private-company valu- ations can be fleeting, subject to hype and the whims of the market, and this is one more area in which Silicon Valley vastly overshadows New York. Most IF THESE members of the FAST 50 so-called unicorn ARE SO club—billion-dol- GREAT, WHY lar startups being ARE NEARLY rare beasts—are A THIRD PROFITLESS? based in Califor- PAGE 31 nia, where they barely warrant mention unless their valuations touch double- digit billions, like Dropbox ($10 billion) or Uber ($18 billion). But New York City has grown its membership in the club from basically zero five years ago to a good half-dozen now, with an- other half-dozen either closing in on a billion or more than midway there. Founders and investors see the increase as a symbol of the city’s momentum and an addi- tional spur to growth. “More people want to invest in 41 5 you because they think you are going to win,” Mr. Ryan said of the privileges of club membership. “It’s easier to recruit, and to get more press. A lot of advantages NEWSPAPER See BILLION-DOLLAR on Page 31 71486 01068 0 EDITOR’S NOTE Speed freaks FYICRAINSNEWYORK.COM What I love most about our annual Fast 50 project is that it’s all about Hospitals prep for Ebola the numbers. You can’t sweet-talk your way onto this list. You can’t ew York City is on a high Ebola hire a PR firm that knows someone alert. ¶ At John F. Kennedy who knows someone who went to NInternational Airport, federal school with someone. Either you health officials last week began screening the temperatures of passengers arriving Glenn Coleman have two to three years of scorching-hot revenue growth, or from Sierra Leone, Liberia and Guinea. you don’t. And this year’s ranking JFK is the entry point in the U.S. for of New York’s 50 fastest-growing companies offers nearly half the arrivals from those West scorchers galore. We’ve estimated that No. 1-ranked African nations. City agencies also have Cantor Commercial Real Estate saw its annual mobilized to set up a clear protocol for newscom revenue grow 24,591% (that’s not a typo), to $226 addressing potential cases, while local hospitals have implemented Ebola drills at emergency million, from 2010 to 2013. Clearly, it’s a good time rooms aimed at early identification of patients exposed to the virus. Bellevue Hospital Center in to be financing real estate deals. Not a bad moment to Manhattan has dedicated isolation rooms and lab facilities to care for Ebola patients. ¶ Despite be a digital advertising vendor, either: Close on the prepping, it’s unclear whether the city can handle an outbreak. “I don’t think New York or Cantor’s heels is LiveIntent, which helps marketers any city has the resources,” said Paula Grace Dunn Tropello, dean of Wagner College’s Spiro place e-newsletter advertising and saw three-year School of Nursing, who estimates that it takes about 100 staff workers to take care of an Ebola revenue growth of 20,900%, to $21 million, in 2013. patient, with rotations. ¶ So far, there have been no confirmed Ebola cases in the city, and Mayor The Fast 50 companies profiled in this week’s issue Bill de Blasio has told New Yorkers that “there is no cause for alarm.”The virus has claimed more range from biotech startups to fashion websites, from than 4,000 lives internationally and one in the U.S. ¶ The precautions and assurances have not solar-power installers to baby-products makers.Their calmed fears. Airline-cabin cleaners for a Delta Air Lines contractor at LaGuardia Airport went customers are fitness fanatics (Tough Mudder), on a brief strike last week because of concerns over the risk of getting Ebola. —barbara benson financial news junkies (Business Insider) and fussy sleepers (Bedgear). Here’s the one constant: Each saw AMAZON GOES OFFLINE. The e-com- investments, according to an agree- HOORAY! more than 150% revenue growth in the time periods merce giant plans to open its first ment with New York state. Most of brick-and-mortar store just in time the accounts, primarily low-risk in- NEW YORK CITY- we reviewed with the help of accounting firm Anchin for the holidays. The shop, a mini- vestments with a focus on mutual BORN John warehouse that will offer same-day funds, were opened before 2009. … O’Keefe, along Block & Anchin. If you’re an investor or banker or with two other real estate broker or business-services provider delivery within the city,will be across POLICE CHOKEHOLD SUIT. The family scientists, won the the street from the Empire State of Eric Garner,the Staten Island man Nobel Prize in looking for the New York companies that best know Building. Amazon’s Kindles, Fire who died as a result of a police choke- medicine for their discovery of the how to execute their strategies for building revenue, smartphones and set-top TV boxes hold in July,intends to file a $75 mil- brain’s “inner the companies profiled on Pages 16 through 30 are may eventually be showcased there. lion suit against the city, the Police GPS.” basically your short list. So congrats, Fast 50. Enjoy … WALDORF ASTORIA SOLD. China’s Department and eight officers. … bloomberg news Anbang Insurance Group bought the NEWSWEEK MAKES MONEY. In Sep- the attention and its many upsides. Of course, with landmarked Art Deco hotel for $1.95 tember, the magazine reported its OY VEY! your three-digit, four-digit and even five-digit billion, or $1.4 million per room— first profitable month since it was ac- A BLACK revenue-growth numbers, one can only hope it’s not the largest U.S. real estate acquisition quired by IBT Media last year. BEAR CUB NEW EXPORT- found dead in all downhill from here. If that’s the case—and, of by a Chinese buyer. … Newsweek said revenue grew 400% in Central Park IMPORT BANK. New the past year, while was reportedly course, the law of gravity inevitably will insist as York state will invest ‘It’s like a advertising dollars run over much—may you enjoy a slow and steady decline. $35 million in a bank were up 100-fold. Its by a car. to boost economic- roller-coaster print edition re- development efforts. turned to newsstands THIS WEEK IN CRAIN’S The bank will provide ride. If you in March. … TBS JOB $25 million in loans make it CUTS. Time Warner’s istockphoto IN THE BOROUGHS-------------------------- 3 to help local compa- Turner Broadcasting nies enter overseas through the System group will Lillian Roberts, executive director of IN THE MARKETS---------------------------------- 4 markets and $10 mil- first trip, you shed 1,475 jobs, 10% District Council 37,will depart at the THE INSIDER -----------------------------------------------7 lion to help firms ex- of its workforce. Jobs end of the year. Ms. Roberts, 86, has port their products. can’t wait to will be eliminated in spent 60 years working for the labor BUSINESS PEOPLE-----------------------10 Gov.Andrew Cuomo get back on’ 18 offices, including movement, including more than a OPINION --------------------------------------------------------14 said he will travel to New York. The cuts decade as the head of the city’s largest China, Israel, Cana- —Comedian Jan Hooks, come as the Atlanta- public-employee union. Henry Gar- STEVE HINDY ------------------------------------------ 15 da, Mexico and Italy who died last week at age based network works rido, associate director at the labor 57, recounting her first GREG DAVID--------------------------------------------15 to promote trade. … to refocus its re- group, will succeed her. … WHAT’S IN CITI REFUNDS. Citi- episode of Saturday Night sources on attracting A CRONUT? Baker Dominique Ansel FAST 50----------------------------------------------------------16 Live group will return $16 a younger demo- revealed the recipe for the famed treat NEW YORK, NEW YORK CLASSIFIEDS -----------------------------------------34 million to more than 31,000 cus- graphic by developing more original in his new cookbook.A batch of eight City Winery founder and tomers who were allegedly over- programming and investing in contains more than three sticks of REAL ESTATE-------------------------------------------37 CEO Michael Dorf is in charged for advisory fees on certain sports. … UNION BOSS TO RETIRE. butter. —emily laermer expansion mode. P. 41 SOURCE LUNCH--------------------------------42 CORRECTIONS (SEE PAGE 40) STORIES TO WATCH THIS WEEK vol. xxx, no. 41, october 13, 2014—Crain’s New York Business (ISSN 8756-789x) is published weekly,except for double issues the weeks of June 23,July 7,July 21,Aug.4,Aug.18 and Dec.