But before we look ahead, let's take another look back.
China Medical Technologies
has been a disappointment since its August 2005 debut, down more than 48% versus a 6% gain for the S&P 500 over the same period. Such is the danger of investing in Chinese small caps. (Nasdaq: CMED)
didn't get much love when it filed for a $75 million IPO in July 2007. Today, the company is has seen its stock rise more than 200% in the past year. The wrinkle? NetSuite went public in December 2007, before the 2008 crash. The stock's modest 1% gain in the years since handily beats the S&P's 12% decline over the same period. (NYSE: N)
Now, as promised, here's a closer look at three companies that recently received funding. Each one is targeting an incumbent tech industry.
What It Does
Whom It Disrupts
|Foursquare||$50 million||Location-based social network.||
|Qunar||$306 million||Travel-specific Chinese search engine.||
|Transphorm||$25 million||Devices for reducing the amount of power lost during conversion.||
Sources: TechCrunch's funding rounds database.
Chances are you know Foursquare. The location-based network has been around for several years. At one time, I billed it as the new Twitter. More recently, the company has become a popular platform for the delivery of local advertisements.
Qunar.com is a search engine for helping Chinese travelers find deals. The idea is disruptive in that it's aggregating results and allowing travelers to choose the best deals. By contrast, Ctrip is a booking engine on the order of Expedia or Orbitz Worldwide. These and similar sites tend to take a 15% booking fee. Qunar makes its money from display advertising and transactional clicks. More than 30% of airline tickets booked in China are now booked through Qunar, board member Richard Lim told Fortune in a recent interview.
Both Google and Baidu
Finally, Transphorm is working on gallium nitride-based power converters that are more efficient than silicon rectifiers. The idea, CEO Umesh Mishra told TechCrunch in February, is to recapture the 10% or so of the power lost during conversion for commercial use. If successful, the savings could reach into the billions for the biggest consumers of power -- data centers and telecommunications operators, notably.
Investors love large numbers, and Transphorm's proposed innovations has attracted another $25 million in a series D round of funding, completed this month. Kleiner Perkins Caulfield & Byers joined with Google Ventures, Foundation Capital, and Lux Capital to fund the round.
See anything I missed? Which Baby Breakers do you like most? Let me know using the comments box below. And if you're interested in learning more about how the Internet is transforming business models and giving rise to new Baby Breakers, take a minute to watch this free video right now. You'll walk away with a stock idea from our Motley Fool Rule Breakers scorecard and a richer understanding of the cloud-computing revolution.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He owned shares of Akamai and Google at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader.
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