Did you know that the average return from investing in stocks is 10% per year (not accounting for inflation)? But who wants to be average?!
You have been asked to support an investment firm by analyzing trends in high-growth companies. They are interested in understanding which industries are producing the highest valuations and the rate at which new high-value companies are emerging. Providing them with this information gives them a competitive insight as to industry trends and how they should structure their portfolio looking forward.
You have been given access to their unicorns database, which contains the following tables:
dates
| Column | Description |
|---|---|
company_id | A unique ID for the company. |
date_joined | The date that the company became a unicorn. |
year_founded | The year that the company was founded. |
funding
| Column | Description |
|---|---|
company_id | A unique ID for the company. |
valuation | Company value in US dollars. |
funding | The amount of funding raised in US dollars. |
select_investors | A list of key investors in the company. |
industries
| Column | Description |
|---|---|
company_id | A unique ID for the company. |
industry | The industry that the company operates in. |
companies
| Column | Description |
|---|---|
company_id | A unique ID for the company. |
company | The name of the company. |
city | The city where the company is headquartered. |
country | The country where the company is headquartered. |
continent | The continent where the company is headquartered. |
The output
Your query should return a table in the following format:
| industry | year | num_unicorns | average_valuation_billions |
|---|---|---|---|
| industry1 | 2021 | --- | --- |
| industry2 | 2020 | --- | --- |
| industry3 | 2019 | --- | --- |
| industry1 | 2021 | --- | --- |
| industry2 | 2020 | --- | --- |
| industry3 | 2019 | --- | --- |
| industry1 | 2021 | --- | --- |
| industry2 | 2020 | --- | --- |
| industry3 | 2019 | --- | --- |
Where industry1, industry2, and industry3 are the three top-performing industries.
WITH CTE1 AS(
SELECT i.industry,
COUNT(i.company_id) AS company_count,
EXTRACT(year FROM d.date_joined) AS year
FROM industries AS i
LEFT JOIN dates AS d
ON i.company_id = d.company_id
WHERE EXTRACT(year FROM d.date_joined) IN (2019, 2020, 2021)
GROUP BY i.industry, year
ORDER BY company_count DESC
LIMIT 3
),
CTE2 AS(
SELECT COUNT(i.company_id) AS num_unicorns,
i.industry,
EXTRACT(year FROM d.date_joined) AS year,
AVG(f.valuation) AS average_valuation
FROM industries AS i
LEFT JOIN dates AS d
ON d.company_id = i.company_id
LEFT JOIN funding AS f
ON f.company_id = i.company_id
GROUP BY i.industry, year
)
SELECT c2.industry,
c2.year,
c2.num_unicorns,
ROUND(c2.average_valuation / 1000000000, 2) AS average_valuation_billions
FROM CTE2 AS c2
LEFT JOIN CTE1 AS c1
ON c2.industry = c1.industry AND c2.year = c1.year
WHERE c2.year IN (2019, 2020, 2021) AND c2.industry IN (SELECT c1.industry FROM CTE1 AS c1)
GROUP BY c2.industry, c2.year, c2.num_unicorns, c2.average_valuation
ORDER BY year, num_unicorns DESCSELECT i.industry,
COUNT(i.company_id) AS company_count,
EXTRACT(year FROM d.date_joined) AS year
FROM industries AS i
LEFT JOIN dates AS d
ON i.company_id = d.company_id
WHERE EXTRACT(year FROM d.date_joined) IN (2019, 2020, 2021)
GROUP BY i.industry, year
ORDER BY company_count DESC
LIMIT 3; SELECT COUNT(i.company_id) AS num_unicorns,
i.industry,
EXTRACT(year FROM d.date_joined) AS year,
AVG(f.valuation) AS average_valuation
FROM industries AS i
LEFT JOIN dates AS d
ON d.company_id = i.company_id
LEFT JOIN funding AS f
ON f.company_id = i.company_id
GROUP BY i.industry, year
--ORDER BY num_unicorns DESC