In 1984, Michael Dell started Dell and he became a billionaire in the year 2000. That’s 16 years after starting his business on a full time mode after he dropped out of college. Here’s an article about him. Bill Gates founded Microsoft in 1975, got it listed in 1986 which was 11 years later. He later became a billionaire in 1987, when he was 31 years old. Here’s that article about him. These two are people from the IT business world. Dell is a prominent hardware brand while Microsoft is a household name for Windows. These days, the speed of people with great ideas becoming super rich is becoming much faster. It’s also much more common and truth is, the businesses do not even need to be profitable or become publicly listed. These businesses, with an increasing market share and potential will usually get all the funding they needed and a high valuation as well.
Article in thestar.com.my Henrique Dubugras, 23, and Pedro Franceschi, 22 are founders and top executives of Brex Inc, a fintech startup which is now valued at US$2.6 billion. (RM10.75 billion). Both of them enrolled in Stanford University but did not even complete their first year before starting Brex. Brex is now one of the fastest American companies to reach a multi-billion dollar valuation. In 2017, Brex was valued at US$25mil, according to data from PitchBook. Its latest funding round pegged its valuation at more than US$2bil. Based on their stakes, both the owners are worth an estimated US$430 million (RM1.78 billion) each.
The company’s key product is a credit card for startups and their employees that relies on real-time data, rather than traditional credit scores. One of the drivers of Brex’s towering valuation, its founders have said, is its potential to expand into other businesses. The firm has also recently introduced credit cards for e-commerce companies and life sciences companies. Dubugras earlier said that Brex’s new e-commerce business now accounts for about one-third of its revenue. Please do refer here for the full article. Article in thestar.com.my
It’s a tough act to follow. However, today it’s really possible if one has a great idea and could start it and then start showing market potential through revenue numbers. The investors will then come in to invest and if everything goes well, every new round of financing meant the company is valued ever higher and very soon, the owner could become multi-millionaires first and perhaps billionaires later. GRAB was founded in 2012. As at recent round of financing, GRAB is now valued at US$14 billion (RM58 billion). Article here. Is it considered a profitable company yet? Well, if we are looking at the financiers, I think they are looking at GRAB dominating the market shares instead. It is said to be looking at hitting a revenue of US$ 2 billion this year. Article here. Okay, enough about startups. For those looking to become a multi-millionaire, property investment remains a good vehicle especially for working professionals. Happy understanding.
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