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!
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.