As the coronavirus pandemic ravaged the world, a few lucky people had incredible years. Fifty-six new billionaires were minted since Covid-19 shut everything down in March. This gives the U.S. a total of 659 billionaires. From the red-hot IPOs of DoorDash and Luminar to healthcare and biotech surges to education-related companies helping navigate the new world of online schools, these new billionaires are at the forefront of their industries. The pandemic, while devastating for many, turned out to be a golden opportunity for a select group of individuals who capitalized on emerging trends.
It's also worth noting once again that even the richest multi-billionaires in the world saw their fortunes skyrocket in 2020. Jeff Bezos, Elon Musk, and Bill Gates have all seen their net worths increase by insane amounts. At the start of March 2020, Jeff Bezos was worth $111 billion and now is worth $194 billion. Elon Musk was worth $28 billion on January 1, 2020, and is now worth $202 billion. Bill Gates was worth $110 billion at the beginning of 2020 and is now worth $135 billion. These numbers reveal how the wealth gap can widen significantly during times of crisis.
The IPO market was hot in 2020 despite the pandemic. DoorDash's Tony Xu, Stanley Tang, and Andy Fang all joined the billionaire's club on December 9, when their company made its IPO on the New York Stock Exchange and saw shares climb to $189 from the IPO price of $102. Rounds of venture capital funding were also a driver of creating new billionaires, most notably Robinhood's Vlad Tenev and Baiju Bhatt. Their stories highlight the potential for innovation and entrepreneurship to thrive even in challenging times.
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Notable New Billionaires of 2020
This section will explore some of the most remarkable new billionaires who emerged during the pandemic year. Each of these individuals leveraged unique opportunities presented by the shifts in consumer behavior and market demands.
Vlad Tenev
Net worth: $1 billion
Citizenship: U.S.
Source: Trading app Robinhood Financial
Vlad Tenev became a billionaire in 2020, thanks to the $800 million he raised from investors, which valued the company he co-founded at $11 billion. Robinhood was recently in the news for the part it played in the Reddit takeover of GameStop stock. Last summer, it was revealed that Robinhood makes its profit by selling the trading data of its customers, who are largely amateur, middle-class traders to the billionaires on Wall Street. The SEC fined Robinhood $65 million for failing to disclose its deals with big Wall Street trading firms.
Dmitry and Igor Bukhman
Net worth: $1.4 billion each
Citizenship: Russia
Source: Online game company Playrix
Dmitry (35) and Igor (38) own and run the online gaming company Playrix, known for the free mobile game apps Fishdom and Homescapes. The brothers were raised in northern Russia and founded Playrix in 2004. They have built it into a company with more than $1 billion in revenues, relying on in-app purchases for their free games.
Jitse Groen
Net Worth: $1.7 billion
Citizenship: Netherlands
Source: Food delivery service Takeaway.com
Jitse Groen is the founder of food delivery service Takeaway.com, which operates in 10 European cities and Israel. Founded in 2000, the company went public in 2016 and grew significantly during the pandemic due to a contactless delivery method he implemented.
Impact of the Pandemic on Wealth Creation
The pandemic dramatically reshaped the economic landscape, creating both challenges and opportunities. While many industries struggled, some companies saw explosive growth due to changing consumer needs.
Growth of E-commerce and Delivery Services
As people were encouraged to stay home, e-commerce and food delivery services saw unprecedented demand. Companies like DoorDash and Takeaway.com not only thrived but also created new billionaires in the process. This shift demonstrates the adaptability of businesses in response to global events.
Innovations in Healthcare and Technology
Healthcare and technology sectors experienced rapid advancements as companies raced to develop solutions for pandemic-related challenges. The surge in telehealth services and biotech innovations highlighted the potential for growth in these industries. For example, Moderna's rapid development of a Covid-19 vaccine showcased how innovation could lead to significant financial rewards.
Final Thoughts
The emergence of new billionaires during the pandemic serves as a testament to the resilience of entrepreneurship and innovation. While the world faced unprecedented challenges, some individuals seized the moment to create substantial wealth and make an impact. The stories of these billionaires not only inspire but also emphasize the importance of adaptability and forward-thinking in the face of adversity.
