I’m talking about companies like Dropbox, Box, and Cloudera that have grown powerful enough to be on the market. covers of business magazines and survived but barely set the world on fire. They are usually not whales or minnows. Dropbox, a digital file storage service, costs about as much as Levi Strauss.
Buying their shares has not made a group of individuals extremely wealthy. Cloudera, which sells software to companies to scramble their information, agreed on Tuesday to sell the business for a much lower share value than what a huge investor paid when Cloudera was a comparatively younger start-up in 2014. Dropbox and Box, also an enterprise software company, are priced about the same or lower than they were when they went public in 2018 (Dropbox) and 2015 (Box). The applied sciences of these companies turned out not to be very related or they were supplanted by something more.
There are many start-ups that have taken off thanks to the growth of monetary disaster technology, won oohs from technicians and received tons of money thrown at them, had preliminary public choices, and then … Eh. They’re nice. Others have been bought or have quietly disappeared.
(One caveat: I would have put Square in the center of meh until last year, when its expertise, as well as digital showcases for small businesses, proved to be very important through the coronavirus pandemic. This shows that companies can generally quickly switch from meh to nice, or from meh to useless.)
The downside is that people in and around the expertise are quite happy to talk about companies, IT’S GOING TO BE HUGE, after which barely point them out after they don’t become stars.