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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
SELECT * FROM companies
Spinner
DataFrameas
df
variable
WITH top_industries AS (
    SELECT
        COUNT(DISTINCT i.*) AS num_unicorns,
        i.industry,
        EXTRACT(YEAR FROM d.date_joined) AS year
    FROM 
        industries AS i
    JOIN
        dates AS d
    ON
        i.company_id = d.company_id
    WHERE
        EXTRACT(YEAR FROM d.date_joined) IN ('2019', '2020', '2021')
    GROUP BY 2, 3
    ORDER BY 1 DESC
    LIMIT 3
),
yearly_rankings AS(
    SELECT
        i.industry,
        COUNT(DISTINCT i.*) AS num_unicorns,
        EXTRACT(YEAR FROM d.date_joined) AS year,
        AVG(f.valuation) AS average_valuation
    FROM
        industries AS i
    JOIN
        funding AS f
    ON
        i.company_id = f.company_id
    JOIN
        dates AS d
    ON
        f.company_id = d.company_id
    GROUP BY 1, 3
)
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 1, 2, 3
ORDER BY 1, 2 DESC;