The Top Ten Private Companies

December 12, 2000

4 Min Read
Light Reading's Top Ten Private Companies

This is our selection of the hottest IPO prospects in optical networking —the ten startups we believe are most likely to make a big splash in thepublic market.

Of course, this is the listing as of today. Light Reading editors —like investors — are a fickle lot, and we will move companies up, down,and off the list on a regular basis depending on the performance of theirproducts and executives. (Light Readers that have been followingThe Top Ten Movers and Shakers in Optical Networking will be familiar with this system.)

Table 1: Top Ten Private Companies

Company

Name

Last Position on List

Number of Weeks on List

1

1

13

2

2

13

3

3

13

4

4

13

5

5

13

6

6

12

7

7

13

8

8

13

9

9

13

10

10

13

LIQUIDITY BIN

Name

Last Position on List

Number of Weeks Listed

6

1



How are the companies selected? Light Reading’s editors look at threecriteria:

  • Technology Does it work, and if so, how?

  • People Grey-haired CEO in place? Check. Truth-challenged VP of marketing on board? Check.

  • Money It’s not only how much you have, it’s who you get it from.These are the same criteria that we use in all our optical networkingcoverage, so we’re on familiar ground here. But we can always use a littlehelp. While we didn’t get any nominations for our debut list, that may justbe because we forget to tell anyone that we were launching it (oops!).

    You can rectify this egregious oversight now, by sending your suggestions for moves,adds, and changes to the list to [email protected]. Just tell us which company or companies you want to nominate and why. (Note: owningoptions in the company you are suggesting may be a good reason, but it isnot an acceptable reason).

    The Rules

    There aren’t many rules, but the ones we have are strictly enforced (exceptwhen we think there’s a good reason for breaking them).

    Rule #1

    Companies must be privately held [like, duh! – ed]. Public companies aren’teligible, so don’t even try.

    Rule #2

    The optical networking industry is not a democracy — and neither is the TopTen list. The editors of Light Reading make the final call on whichcompanies make the cut, and our verdict is irrevocable. There is no highercourt of appeal — not even the Florida Secretary of State.

    For the same reason, there’s also no point sending multiple emailssuggesting the same company (friends of MRV please take note).It’s annoying, ok?

    Rule #3

    The list is dedicated to optical networking systems and components players. Service providers are also eligible, although LightReading is planning to launch a shiny new services site, with its very own services Top Ten list, some time in the spring.

    Rule #4

    There is no Rule #4.

    Rule #5

    To be included, companies must explain not only what their product does (theeasy bit: it’s called “marketing”) but also how it does it (the hard part:it’s called “engineering”).

    This weeds out vendors that decline to explain their technology fundamentalsfrom the get-go. Crescent Networks, for instance, got the old heave-ho for thisreason. Cinta Corp., as well. (And if Corvis Corp. was still a privatelyheld company it, too, would have been speedily dispatched for the samereason).

    The technology disclosure rule is an important one, because it makes it lesslikely that Light Reading editors will end up looking foolish byhonoring what we think is, say, a state-of-the-art all-optical switch that then turns out to be a PowerPoint slide of a state-of-the-artall-optical switch.

    It also makes it harder for startups to test the market with a “marketingballoon” announcement, and then change their technology story later (seeCorvis, again).

    Rule #6

    Don’t vote for Atmosphere. We will laugh at you.

    Disclosure: Neither Light Reading Inc. nor any of its editors owns equity, stock options, or warrants in any of the companies listed.

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