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 performance AS (
SELECT DISTINCT i.industry,
COUNT (i.company_id) AS num_unicorns
FROM public.industries AS i
INNER JOIN public.dates AS d ON d.company_id=i.company_id
INNER JOIN public.funding AS f ON i.company_id=f.company_id
WHERE EXTRACT('Year' from d.date_joined) BETWEEN 2019 AND 2021
GROUP BY 1
ORDER BY 2 DESC
LIMIT 3
)
SELECT p.industry,
EXTRACT('Year' FROM date_joined) AS year,
COUNT(DISTINCT i.company_id) as num_unicorns,
ROUND(AVG(f.valuation)/1000000000,2) AS average_valuation_billions
FROM performance as p
INNER JOIN public.industries AS i ON i.industry=p.industry
INNER JOIN public.funding AS f ON i.company_id=f.company_id
INNER JOIN public.dates AS d ON d.company_id=i.company_id
WHERE EXTRACT('Year' from d.date_joined) BETWEEN 2019 AND 2021
GROUP BY 1,2
ORDER BY 2 DESC, 3 DESC
;