Strategies to Identify Fastest Growing Companies

Identifying fast-growing companies can be a great way to achieve high returns. Investment banks, private equity firms, and M&A professionals are keen on identifying high-growth companies, as they represent opportunities for add-on acquisitions, portfolio growth, or strategic partnerships. Being able to identify high-growth companies faster means creating value better than the benchmarks.

Inven is a robust tool for discovering fastest growing companies across various industries with extensive filters and the AI screener. The key benefits of using Inven for finding high-growth companies are the focus on headcount growth data and funding information. With these filters you are able to identify companies that have acquired funding recently, or that have had steady increases in employee numbers. Additional filters, such as operating location, ownership type, and keywords help narrow down the results to match your exact target criteria.

Other methods for finding the fastest growing companies include popular ranking lists like the Inc. 5000. These lists highlight companies that have demonstrated significant headcount growth and revenue increases over time. By exploring the Inc. 5000 fastest growing companies, you can identify trends and emerging leaders in various industries.

Why Headcount Growth Matters

Headcount growth is a powerful indicator of a company's momentum. Faster hiring often signifies that a company is expanding rapidly and experiencing high demand for its products or services. Unlike revenue, which can be affected by various accounting practices, headcount growth provides real-time data on a company's operational scale. It reveals the immediate need for more talent to sustain and propel growth. This is why lists like the Inc. 5000 fastest growing companies and fastest growing tech companies often highlight firms with recent headcount increases.

However, it's important to note that while headcount growth suggests positive momentum, it doesn't guarantee profitability. Companies can rapidly increase their workforce yet still struggle with financial sustainability. Therefore, it's essential to consider headcount growth alongside other metrics to get a comprehensive view of a company's health and potential.

Finding Fastest Growing Companies with Inven

The easiest way to find companies that demonstrate steady growth is using tailored tools such as Inven. Here is a step-by-step guide on how to use Inven to identify companies with high headcount growth:

  1. Define Your Ideal Company Profile: Clearly outline your target company to enhance search effectiveness.
  2. Start with a Broad Search and narrow down if needed: Start searching with a wider range to avoid missing potential targets. Use a headcount growth filter. If needed, define operating location, ownership type, founded year, and headquarters.
  3. Use Keywords and Example Companies: Use specific keywords to include or exclude sectors and niches. Provide sample companies to help AI identify similar profiles. Describe the primary function of the company.
  4. Use AI Screening: Refine your company lists with AI screening to identify overlooked matches.

Results include companies with a headcount growth chart to illustrate their recent development.

The search results can be narrowed down by using keywords and example companies from specific sectors. You can search for example the fastest growing AI companies or the fastest growing tech companies. By leveraging AI and Natural Language Processing (NLP), Inven helps users to build a list of companies within the exact profile they're looking for.

Examples of fastest growing companies found with Inven

Here are some examples of the fastest growing companies from various industries.

To discover the fastest growing companies in your target industries, book a demo with Inven.

1. EverBright

  • Website: goeverbright.com
  • Industry: Renewable Energy Semiconductor Manufacturing
  • Headquarters: Juno Beach, Florida, United States (USA)
  • Founded year: 2021
  • Headcount: 201 - 500
  • 2yr headcount growth: 728%

EverBright is a company that offers clean energy improvements for homes through solar panels and other clean energy upgrades. They provide tailored financing options to make clean energy upgrades more accessible to homeowners nationwide.

2. Enfint

  • Website: enfint.ai
  • Industry: It Services And It Consulting
  • Headquarters: Johannesburg, South Africa
  • Headcount: 201 - 500
  • 2yr headcount growth: 1300%

ENFINT Technologies is a digital service company providing ML/AI-driven software solutions for various industries to help businesses achieve efficiency and productivity. They offer platforms, services, and training related to cloud engineering, MLOps, and digital financial services.

3. NIBE Group

  • Website: nibe.eu
  • Industry: Industrial Machinery Manufacturing
  • Headquarters: Markaryd, Kronoberg County, Sweden
  • Founded year: 1952
  • Headcount: 10001+
  • 2yr headcount growth: 3594%

NIBE is a global company that specializes in providing sustainable energy solutions for indoor climate and comfort. Their focus is on reducing greenhouse gas emissions and contributing to a more sustainable world. They offer a wide range of energy-efficient products and services that cater to residential, commercial, and industrial customers.

4. Mantra

  • Website: mantragroup.com
  • Industry: Software Development
  • Headquarters: Hyderabad, Telangana, India
  • Founded year: 2013
  • Headcount: 201 - 500
  • 2yr headcount growth: 1760%

Mantra is a global enterprise specializing in digital transformation and innovative advancements like 500apps and Owfis. With a purpose-driven approach, Mantra empowers businesses and individuals to transform for the better.

5. Cleantech

  • Website: cleantech.lk
  • Industry: Waste management
  • Headquarters: Colombo, Sri Lanka
  • Founded year: 2020
  • Headcount: 1001-5000
  • 2yr headcount growth: 1019%

CleanTech is a company that provides eco-friendly and sustainable solutions to corporations and governments. Their expertise includes renewable energy, waste management, and green transportation.

6. Wood & Energy

  • Website: wood-energy.group
  • Industry: Wholesale Building Materials
  • Headquarters: Weiswampach, Diekirch, Luxembourg
  • Founded year: 1997
  • Headcount: 201 - 500
  • 2yr headcount growth: 2400%

Wood & Energy is an international company producing sustainable wood products and renewable energy. With three production sites in Belgium and Germany, they specialize in using locally sourced wood from sustainable forestry to create sawn timber, construction timber, wood pellets, and renewable electricity and heat through integrated production processes. They also offer engineering and project management services in the sawmill and biomass energy sectors.

Additional Resources for Growth Investors

Growth investors can benefit from a variety of resources to identify fast-growing companies. Key resources include financial news outlets, industry reports, and market analysis websites. These sources provide insights into emerging trends and companies on the rise. Techniques such as analyzing financial statements, following their growth, and studying market development are essential.

The Inc. 500 and Inc. 5000 lists are valuable tools, highlighting companies with impressive growth rates. However, Inven stands out with its unique value proposition, focusing on tailored search functions with headcount growth data and funding. The headcount metric often indicates expansion and demand more accurately than revenue alone. With Inven's advanced filters, including recent funding and specific industry keywords, investors can pinpoint high-potential companies efficiently.

A combination of sources produces the best results in finding the fastest growing companies. Investors rely on a variety of news outlets and websites to stay informed on recent development in the market. Some of the most widely used resources include:

Financial News Outlets:

Market Analysis Websites:

  • PitchBook: Provides data on private capital markets, including venture capital, private equity, and M&A transactions.
  • Crunchbase: Tracks information about private and public companies, including funding rounds and key personnel.
  • CB Insights: Analyzes data on venture capital, startups, patents, and technology trends.
  • S&P Capital IQ: Offers financial data, research, and analysis on public and private companies.
  • Morningstar: Provides investment research and analysis, including stock, mutual fund, and ETF data.

The Best practices to Identify High-Growth Companies

Identifying high-growth companies is crucial for private equity firms and investment banks seeking strategic opportunities and high-potential targets.  While traditional resources like the Inc. 5000 list and financial news outlets remain valuable, Inven's real-time data provides an edge.

Inven's advanced search capabilities, with a unique focus on headcount growth, funding, operating location and ownership type offer a distinct advantage in this task. By utilizing tailored filters and AI screening, Inven helps investors pinpoint companies with capabilities for growth.