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https://github.com/netcodez/analysing-unicorn-companies---sql

Analysing Unicorn Companies using SQL
https://github.com/netcodez/analysing-unicorn-companies---sql

data-analysis data-structures database postresql sql

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Analysing Unicorn Companies using SQL

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README 

        
# Analysing-Unicorn-Companies---SQL



## Analysing Unicorn Companies using SQL



### Investment Trends Analysis

Investment firms are constantly seeking insights into trends among high-growth companies to make informed decisions about their portfolios. Investment firms can leverage this information to gain a competitive edge in understanding industry trends and structuring their portfolios strategically. This project involves analyzing a PostgreSQL database containing information about unicorn companies, their valuations, funding, industries, and other relevant details.



### Database Structure

The PostgreSQL database consists of the following tables:



- **dates**

  - company_id: A unique ID for the company.

  - date_joined: The date the company became a unicorn.

  - year_founded: The year the company was founded.



- **funding**

  - 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**

  - company_id: A unique ID for the company.

  - industry: The industry in which the company operates.



- **companies**

  - 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.



### Results

The SQL query results provide valuable insights into the trends among high-growth companies (unicorns) across different industries for the years 2019, 2020, and 2021. Here's an interpretation of the key information:



#### Industries with the Highest Number of Unicorns:

**E-commerce & Direct-to-Consumer:**

- In 2019, there were 12 unicorn companies in this industry.

- In 2020, the number increased to 16.

- By 2021, there are 47 unicorn companies.



**Fintech:**

- 2019 saw 20 unicorn companies in the fintech sector.

- In 2020, the number remained high at 15.

- However, in 2021, there is a significant surge to 138 unicorn companies, indicating substantial growth in this industry.



**Internet Software & Services:**

- In 2019, there were 13 unicorn companies in this industry.

- The number increased to 20 in 2020.

- In 2021, it remains a strong industry with 119 unicorn companies.



#### Average Valuation (in Billions) of Unicorn Companies:

**Fintech:**

- Fintech companies had the highest average valuation of $6.80 billion in 2019.

- In 2020, the average valuation was $4.33 billion.

- In 2021, it decreased to $2.75 billion, but it remains a lucrative industry.



**Internet Software & Services:**

- This industry had a notable average valuation of $4.23 billion in 2019.

- In 2020, the average increased to $4.35 billion.

- By 2021, the average valuation decreased to $2.15 billion, but it continues to be a significant player.



**E-commerce & Direct-to-Consumer:**

- E-commerce had an average valuation of $2.58 billion in 2019.

- In 2020, the average increased to $4.00 billion.

- By 2021, the average valuation slightly decreased to $2.47 billion.



#### Key Observations:

- **Fintech Dominance:** Fintech emerged as a dominant industry in terms of the number of unicorn companies and high average valuations. The significant increase in the number of fintech unicorns in 2021 suggests a robust and growing sector.



- **Internet Software & Services Stability:** While the number of companies in this industry increased, the average valuation remained relatively stable. It indicates a consistent presence and valuation within this sector.



- **E-commerce & Direct-to-Consumer Growth:** The e-commerce industry witnessed substantial growth in the number of unicorn companies, particularly in 2021. Despite a slight decrease in average valuation, the industry remains dynamic.



These insights are crucial for investment firms, providing a comprehensive understanding of industry trends and assisting in strategic decision-making for portfolio structuring.