Skip to content

Did you know that the average return from investing in stocks is 10% per year! 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

ColumnDescription
company_idA unique ID for the company.
date_joinedThe date that the company became a unicorn.
year_foundedThe year that the company was founded.

funding

ColumnDescription
company_idA unique ID for the company.
valuationCompany value in US dollars.
fundingThe amount of funding raised in US dollars.
select_investorsA list of key investors in the company.

industries

ColumnDescription
company_idA unique ID for the company.
industryThe industry that the company operates in.

companies

ColumnDescription
company_idA unique ID for the company.
companyThe name of the company.
cityThe city where the company is headquartered.
countryThe country where the company is headquartered.
continentThe continent where the company is headquartered.
Spinner
DataFrameas
df
variable
WITH TOP_INDUSTRIES AS (
	SELECT industry, COUNT(company_id) as uni_count_over
	FROM industries
	WHERE company_id IN (
		select company_id
		FROM dates 
		WHERE extract(year FROM date_joined) IN ('2019', '2020', '2021')
		)
	GROUP BY industry
	ORDER BY uni_count_over DESC
	limit 3),

yearly_rankings AS (
	SELECT 
		industry,
		extract(year FROM date_joined) as year,
		count(d.company_id) as num_unicorns,
		avg(VALUATION) AS average_valuation
	FROM industries as i
	JOIN dates as d
	ON i.company_id = d.company_id
	JOIN funding as f
	ON i.company_id = f.company_id
	WHERE extract(year FROM date_joined) IN ('2019', '2020', '2021')
	GROUP BY industry, year)

select industry, 
	year, 
	num_unicorns,
	round(avg(average_valuation)/1000000000, 2) as average_valuation_billions
FROM yearly_rankings
WHERE year IN ('2019', '2020', '2021')
AND industry IN (
	SELECT industry
	FROM top_industries)
group by industry, year, num_unicorns
ORDER BY industry, year DESC;

This was an Unguided Project: I was given just the task to accomplish without any step-by-step instructions. The code below was what I produced on my own, but the grader didn't like it because I ordered my results to a more detailed level. I put the 3 industries in order of how many unicorn companies they had (Fintech was top w/ 173, Internet software was next with 152, and E-commerce was 3rd w/ 75.) The code above was how I modified my code so the grader would accept it.

Spinner
DataFrameas
df1
variable
----CTE ut (unicorn total) gives the top 3 industries (according to # of unicorn companies created in those three years), and their total of unicorn companies
WITH ut AS (
	SELECT industry, COUNT(company_id) as uni_count_over
	FROM industries
	WHERE company_id IN (
		select company_id
		FROM dates 
		WHERE extract(year FROM date_joined) IN ('2019', '2020', '2021')
		)
	GROUP BY industry
	ORDER BY uni_count_over DESC
	limit 3)

--the main query takes those top 3 industries, counts the number of unicorn companies for them per year, and takes their average valuation per year
SELECT 
	ut.industry,
	extract(year FROM date_joined) as year,
	count(d.company_id) as num_unicorns,
	ROUND(avg(VALUATION)/1000000000, 2) AS average_valuation_billions
FROM ut
LEFT JOIN industries as i
ON ut.industry = i.industry
LEFT JOIN dates as d
ON i.company_id = d.company_id
LEFT JOIN funding as f
ON i.company_id = f.company_id
WHERE extract(year FROM date_joined) IN ('2019', '2020', '2021')
AND d.company_id IN (
		select company_id
		FROM dates 
		WHERE extract(year FROM date_joined) IN ('2019', '2020', '2021')
	)
GROUP BY ut.industry, year, ut.uni_count_over
ORDER BY ut.uni_count_over DESC, year DESC;