Project Brief

You work for Teclov, an asset management company. Teclov wants to make

investments in a few companies. The CEO of Teclov wants to understand the global

trends in investments so that she can take the investment decisions effectively.

Business and Data Understanding

1. It wants to invest between 5 to 15 million USD per round of investment

2. It wants to invest only in English-speaking countries because of the ease of

communication with the companies it would invest in

! For your analysis, consider a country to be English speaking only if English is

one of the official languages in that country

! You may use this list: Click here for a list of countries where English is an

official language.

These conditions will give you sufficient information for your initial analysis. Before

getting to specific questions, let’s understand the problem and the data first.

1. What is the strategy?

Teclov wants to invest where most other investors are investing. This pattern is

often observed among early stage startup investors.

We have taken real investment data from crunchbase.com, so the insights you get

may be incredibly useful. For this group project, we have divided the data into the

following files:

You have to use three main data tables for the entire analysis

3. What is Teclov’ business objective?

The business objectives and goals of data analysis are pretty straightforward.

1. Business objective: The objective is to identify the best sectors, countries,

and a suitable investment type for making investments. The overall strategy is

to invest where others are investing, implying that the 'best' sectors and

countries are the ones 'where most investors are investing'.

2. Goals of data analysis: Your goals are divided into three sub-goals:

○ Investment type analysis: Comparing the typical investment amounts

in the venture, seed, angel, private equity etc. so that Teclov can

choose the type that is best suited for their strategy.

○ Country analysis: Identifying the countries which have been the most

heavily invested in the past. These will be Teclov’ favourites as well.

○ Sector analysis: Understanding the distribution of investments across

the eight main sectors. (Note that we are interested in the eight 'main

sectors' provided in the mapping file. The two files — companies and
 rounds2 — have numerous sub-sector names; hence, you will need to

map each sub-sector to its main sector.)

1. Company details

companies: A table with basic data of companies

3. Sector Classification:

mapping.csv: This file maps the numerous category names in the companies table

(such 3D printing, aerospace, agriculture, etc.) to eight broad sector names. The

purpose is to simplify the analysis into eight sector buckets, rather than trying to

analyse hundreds of them.

Problem 1: Data Cleaning 1

1. Load the companies and rounds data into two data frames and name them

companies and rounds2 respectively.

2. Table 1.1:

Results Expected: Table 1.1

Table 1.1: Understand the Data Set

How many unique companies are present in rounds2?

How many unique companies are present in companies?

key for each company? Write the name of the column.

Are there any companies in the rounds2 file which are not present in

companies? Answer yes or no: Y/N

Merge the two data frames so that all variables (columns) in the

companies frame are added to the rounds2 data frame. Name the

merged frame master_frame. How many observations are present in

master_frame?

After this, you will need to work only with the master frame.

Problem 2: Funding Type Analysis

This is the first of the three goals of data analysis – investment type analysis.

The funding types such as seed, venture, angel, etc. depend on the type of the

company (startup, corporate, etc.), its stage (early stage startup, funded startup,

etc.), the amount of funding (a few million USD to a billion USD), and so on. For

example, seed, angel and venture are three common stages of startup funding.

! Seed/angel funding refer to early stage startups whereas venture funding

occurs after seed or angel stage/s and involves a relatively higher amount of

investment.

! Private equity type investments are associated with much larger companies

and involve much higher investments than venture type. Startups which have
 grown in scale may also receive private equity funding. This means that if a

company has reached the venture stage, it would have already passed

through the angel or seed stage/s.

Teclov wants to choose one of these four investment types for each potential

investment they will make.

Considering the constraints of Teclov, you have to decide one funding type which is

most suitable for them.

1. Calculate the most representative value of the investment amount for

each of the four funding types (venture, angel, seed, and private equity) and

report the answers in the template provided on the previous page

2. Based on the most representative investment amount calculated above, which

investment type do you think is the most suitable for Teclov?

Considering that Teclov wants to invest between 5 to 15 million USD per investment

round, which investment type is the most suitable for it? Identify the investment type

and, for further analysis, filter the data so it only contains the chosen investment

type.

Problems - Part 2

Problem 3: Country Analysis

This is the second goal of analysis — country analysis.

countries.

Teclov wants to invest in countries with the highest amount of funding for the chosen

investment type. This is a part of its broader strategy to invest where most

investments are occurring.

1. Teclov wants to see the top nine countries which have received the highest

total funding (across ALL sectors for the chosen investment type)

2. For the chosen investment type, make a data frame named top9 with the top

nine countries (based on the total investment amount each country has

received)

Identify the top three English-speaking countries in the data frame top9.

Results Expected: All codes for data frame top9. Fill out Table 3.1.

Table 3.1: Analysing the Top 3 English-Speaking Countries

2. Second English-speaking

country
3. Third English-speaking

country

Now you also know the three most investment-friendly countries and the most suited

funding type for Teclov. Let us now focus on finding the best sectors in these

countries.

Problem 4: Sector Analysis 1

This is the third goal of analysis — sector analysis.

When we say sector analysis, we refer to one of the eight main sectors listed in the

mapping file (note that ‘Other’ is one of the eight main sectors; also, there are eight

sectors if you consider the category 'Blanks' as a missing value). This is to simplify

the analysis by grouping the numerous category lists (named ‘category_list’) in the

mapping file. For example, in the mapping file, category_lists such as ‘3D’, ‘3D

Printing’, ‘3D Technology’, etc. are mapped to the main sector ‘Manufacturing’.
Also, for some companies, the category list is a list of multiple sub-sectors separated

by a pipe (vertical bar |). For example, one of the companies’ category_list is

Application Platforms|Real Time|Social Network Media.

You discuss with the CEO and come up with the business rule that the first string

before the vertical bar will be considered the primary sector. In the example above,

‘Application Platforms’ will be considered the primary sector.

1. Extract the primary sector of each category list from the category_list

column

2. Use the mapping file 'mapping.csv' to map each primary sector to one of the

eight main sectors (Note that ‘Others’ is also considered one of the main

sectors)

Expected Results: Code for a merged data frame with each primary sector mapped

to its main sector (the primary sector should be present in a separate column).

Problem 5: Sector Analysis 2

Now you have a data frame with each company’s main sector (main_sector) mapped

to it. When we say sector analysis, we refer to one of the eight main sectors.
Also, you know the top three English speaking countries and the most suitable

funding type for Teclov. Let’s call the three countries 'Country 1', 'Country 2' and

'Country 3' and the funding type 'FT'.

Also, the range of funding preferred by Teclov is 5 to 15 million USD.

Now, the aim is to find out the most heavily invested main sectors in each of the

three countries (for funding type FT and investments range of 5-15 M USD).

1. Create three separate data frames D1, D2 and D3 for each of the three

countries containing the observations of funding type FT falling within the 5-15

million USD range. The three data frames should contain:

! All the columns of the master_frame along with the primary sector and the

main sector

! The total number (or count) of investments for each main sector in a separate

column

! The total amount invested in each main sector in a separate column

Using the three data frames, you can calculate the total number and amount of

investments in each main sector.

1. Three data frames D1, D2 and D3

2. Table 5.1: Based on the analysis of the sectors, which main sectors and

countries would you recommend Teclov to invest in? Present your conclusions

in the presentation. The conclusions are subjective (i.e. there may be no ‘one

right answer’), but it should be based on the basic strategy — invest in sectors

where most investments are occurring.

Note: In the following table, all the observations refer to investments of the

type FT within 5-15 M USD range.

Table 5.1 : Sector-wise Investment Analysis

Country 1 Country 2 Country 3

1. Total number of investments

(count)
2. Total amount of investment

(USD)
3. Top sector (based on count of

investments)
 4. Second-best sector (based on

count of investments)

5. Third-best sector (based on

count of investments)

6. Number of investments in the

top sector (refer to point 3)

7. Number of investments in the

second-best sector (refer to point

4)
8. Number of investments in the

third-best sector (refer to point 5)

9. For the top sector count-wise

(point 3), which company received

the highest investment?

10. For the second-best sector

count-wise (point 4), which

company received the highest

investment?

Problem 6: Plots

As a final step, you have to present your findings to the CEO of Teclov. Specifically,

she wants to see the following plots:

private equity, and the average amount of investment in each funding type.

This chart should make it clear that a certain funding type (FT) is best suited

for Teclov.

2. A plot showing the top 9 countries against the total amount of investments of

funding type FT. This should make the top 3 countries (Country 1, Country 2,

and Country 3) very clear.

3. A plot showing the number of investments in the top 3 sectors of the top 3

countries on one chart (for the chosen investment type FT).

This plot should clearly display the top 3 sectors each in Country 1, Country 2, and

Country 3.

Expected Result: The three plots.