Deloitte Announces 2010 Technology Fast 500™ Rankings

NEW YORK, Oct. 20 /PRNewswire/ -- Deloitte today released the 2010 Technology Fast 500™, an annual ranking of the fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America. Award winners were selected based on percentage fiscal year revenue growth from 2005 to 2009.  For the 13th consecutive year, there are more software companies on the Technology Fast 500™ than any other single sector.  Biotechnology companies surged ahead this year, comprising 18 percent of the list, the second most prevalent sector in the 2010 ranking.

"We congratulate the 2010 Deloitte Technology Fast 500 on this impressive achievement," said Phil Asmundson, vice chairman and Deloitte's U.S. technology, media & telecommunications leader. "Established sectors like software once again have a major presence in the ranking. However, nascent sectors like clean tech and media/entertainment should not be ignored, and we expect to see their numbers continue to grow on future Fast 500 rankings."

Sector Trends – Software and Biotech Dominate

Software winners represent 38 percent of the overall list, making it the most prevalent sector.  Varicent Software Incorporated, a Toronto-based provider of incentive compensation and sales performance management software, is the top-ranked software company, placing sixth on the overall list with 40,269 percent growth from 2005 to 2009.

"One of the reasons software companies often grow so quickly is that their infrastructure costs are usually not as significant as other sectors," said Asmundson.  "As companies in other industries learn ways to leverage the disruptive power of cloud computing, they too can benefit from this competitive advantage.  Over time we expect to see this trend reflected in our rankings."

Biotech/pharma is the second most prevalent sector in this year's rankings, comprising 18 percent of the Technology Fast 500™.  These 87 companies had an average growth rate of 4,569 percent from 2005 to 2009.  The impressive average growth rate of biotech/pharma is demonstrated by having five biotech/pharma companies in the top 10.  These companies are Affymax, Inc. (ranked second), BioCryst Pharmaceuticals, Inc. (ranked fifth), Alexion Pharmaceuticals, Inc. (ranked seventh), Onyx Pharmaceuticals, Inc. (ranked ninth) and Celldex Therapeutics, Inc. (ranked 10th).  

The percentage of companies from industry sectors are represented on the Technology Fast 500™ as follows:

Access to Capital Is a Key Success Factor

A majority -- 57 percent -- of the winners are public companies that have successfully raised capital through the public market.  Furthermore, 20 percent are private companies with a history of venture capital funding.  In a survey of the 2009 Technology Fast 500™ winners, nearly two-thirds of chief executive officers surveyed said they had no need to raise new capital to continue on their growth trajectories.  

"It may not be surprising that a common trait of Fast 500 leaders is their sense of confidence in securing capital to maintain and grow their business," said Mark Jensen, managing partner, venture capital services, Deloitte & Touche LLP. "But it does serve as a good reminder that regions that lay the groundwork for strong local venture markets will be able to attract innovative, high-growth companies regardless of the economic climate."

From a regional perspective, 36 percent of the Technology Fast 500 companies are from the West, with California once again as the standout with 143 companies on the list.  States in the Northeast and the Southeast also have a significant concentration of Technology Fast 500™ companies, with 28 percent and 14 percent, respectively.

For additional detail on the Technology Fast 500™ including qualifying criteria, visit www.fast500.com

As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries.  Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

SOURCE Deloitte