Industry Analysis - March 24, 2021

Merlin Ratings by Industry – Chart of the Week

 

KingsCrowd is proud to be the first data analytics platform for the online private market. With the release of Merlin in August last year, we thought we’d take a look at our Merlin ratings and the percentage of companies in each industry that rated within a specific range. Let’s dive into it!

Merlin Ratings by Industry

An industry that initially stands out is Arts & Crafts. Exactly 50% of the companies scored between 2.0-to-2.9, and the other half scored between 4.0-to-4.9. We can infer that the data size for the industry is probably quite small — creating the clean break we see. It would also seem that this small set of companies represented rather polar investment potentials. Another polarized industry is the Retail Shops & Department Stores industry, where we see 50% of companies scoring in the middle of our 1-to-5 range. The other 50% is split evenly between 2.0-to-2.9 and 4.0-to-4.9. Once again, the clean break between industries indicates a small sample size, and that 50% of the companies we’ve rated here were decidedly average. 

Industries where see higher deal flow — such as Consumer Products, Goods, & Services; Food, Beverage, & Restaurants; and Alcohol, Tobacco, & Recreational Drugs — tend to have a wider distribution of ratings. It’s also interesting to note that (so far) only 12 industries have had companies that managed to achieve an overall rating of 5. And the Marketing & Advertising industry comes in with most top scoring companies — more than 20% of those companies achieved a score of 5. 


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About: Francis Vu

An investment professional with a background in private equity and venture capital having spent time conducting investments at VU Venture Partners and Pacific Oak LLC with a finance and management degree from Tulane University.

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