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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. |
DataFrameavailable as
df2
variable
-- Creating a temporary data table(CTE), named 'data', that contains all the desired columns, filtered for the period 2019-2021
WITH data as (
SELECT
industry,
count(date_joined) as num_unicorns,
EXTRACT(YEAR FROM date_joined) AS year,
ROUND(AVG(valuation/1000000000),2) AS average_valuation_billions
FROM dates AS d
LEFT JOIN funding AS f
ON d.company_id = f.company_id
LEFT JOIN industries AS i
ON f.company_id = i.company_id
LEFT JOIN companies AS c
ON i.company_id = c.company_id
WHERE EXTRACT(YEAR FROM d.date_joined) BETWEEN 2019 AND 2021
GROUP BY industry, year
),
-- Creating a second CTE named 'top_industry' to find the top 3 industries based on the total number of unicorns during the period 2019-2021
top_industry AS (
SELECT
industry,
count(*) as n
FROM industries as i
INNER JOIN dates as d
ON i.company_id = d.company_id
WHERE EXTRACT(YEAR FROM d.date_joined) BETWEEN 2019 AND 2021
GROUP BY industry
ORDER BY n DESC
LIMIT 3
)
-- Finally we combine the 2 above created CTE's to query for tbe columns of interest
SELECT industry, year, num_unicorns, average_valuation_billions
FROM data
WHERE industry IN (SELECT industry FROM top_industry)
ORDER BY year DESC, num_unicorns DESC;