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Project: Analyzing Unicorn Companies
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
| 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. |
DataFrameas
df4
variable
--RETURN CUMMULATIVE TOTAL UNICORNS PER INDUSTRY TO IDENTIFY THE TOP 3 OVER 3YRS
SELECT i.industry,
COUNT(d.company_id) AS num_unicorns,
COUNT(DISTINCT EXTRACT(YEAR FROM date_joined)) AS total_num_years,
ROUND(AVG(f.valuation/1000000000),2) AS average_valuation_billions
FROM industries AS i
JOIN dates AS d
USING(company_id)
JOIN funding AS f
USING(company_id)
WHERE d.date_joined IN
(SELECT
CASE
WHEN EXTRACT(YEAR FROM date_joined) IN (2021, 2020, 2019)
THEN date_joined END
FROM dates
)
GROUP BY i.industry
ORDER BY num_unicorns DESC
LIMIT 3DataFrameas
df6
variable
--confirming top industry query runs as a CTE
WITH
top_industries
AS (
SELECT
i.industry,
COUNT(d.company_id) AS num_unicorns,
COUNT(DISTINCT EXTRACT(YEAR FROM date_joined)) AS total_num_years,
ROUND(AVG(f.valuation/1000000000),2) AS average_valuation_billions
FROM industries AS i
JOIN dates AS d
USING(company_id)
JOIN funding AS f
USING(company_id)
WHERE d.date_joined IN
(SELECT
CASE
WHEN EXTRACT(YEAR FROM date_joined) IN (2021, 2020, 2019)
THEN date_joined END
FROM dates
)
GROUP BY i.industry
ORDER BY num_unicorns DESC
LIMIT 3
)
SELECT * FROM top_industriesDataFrameas
df5
variable
--HOW MANY COMPANIES WITHIN THE TOP 3 INDUSTRIES (FINTECH, SAAS, ECOM) BECAME UNICORNS IN EACH YEAR
WITH
top_industries
AS (
SELECT
i.industry,
COUNT(d.company_id) AS num_unicorns,
--EXTRACT(YEAR FROM date_joined)AS year,
ROUND(AVG(f.valuation/1000000000),2) AS average_valuation_billions
FROM industries AS i
JOIN dates AS d
USING(company_id)
JOIN funding AS f
USING(company_id)
WHERE d.date_joined IN
(SELECT
CASE
WHEN EXTRACT(YEAR FROM date_joined) IN (2021, 2020, 2019)
THEN date_joined END
FROM dates
)
GROUP BY i.industry
ORDER BY num_unicorns DESC
LIMIT 3
)
--END OF CTE--END OF CTE--END OF CTE--END OF CTE--END OF CTE--END OF CTE--END OF CTE--
SELECT i.industry,
EXTRACT (YEAR FROM d.date_joined) AS year,
COUNT(d.date_joined) AS num_unicorns,
ROUND(AVG(f.valuation/1000000000),2) AS average_valuation_billions
--DENSE_RANK() OVER(ORDER BY num_unicorns DESC)AS rank
FROM industries AS i
JOIN top_industries as ti
USING(industry)
JOIN dates AS d
USING(company_id)
JOIN funding AS f
USING(company_id)
WHERE i.industry IN
(SELECT industry FROM top_industries)
AND d.date_joined IN
(SELECT
CASE
WHEN EXTRACT(YEAR FROM date_joined) IN (2021, 2020, 2019)
THEN date_joined
END
FROM dates
)
GROUP BY i.industry, year, num_unicorns --,f.valuation --ti.average_valuation_billions
ORDER BY i.industry, year DESC
--ORDER BY rank ASC, year DESC --i.industry DESC, year DESC