Data analysis in investment - A way to invest effectively

Before making an investment, analysis of the market is the need of the hour, to ensure that the money we invest generates at least the expected profit.

“In God we trust, all others bring data.” — W Edwards Deming.

Data can reveal very important and unexpected insights if one explores it properly. With a proper knowledge in Data Analysis, investment companies can investigate over a wide range of options and shortlist the top options in which probability of making a profit would be high.

The case study is of a company that wants to make a profitable investment in the market but has two constraints while doing so. It wants to invest between 5 to 15 million USD per round of investment and also wants to invest only in English-speaking countries because of the ease of communication with the companies it would invest in.

The overall analysis is divided as follows:






The first step is to clean the data by removing the values that are not required and converting the non-numerical data into numerical values as our machine understands only numerical data.
Now we need work on the sub-divided sections, i.e, funding type, countries and sectors.

1. Funding type analysis

Venture, seed, undisclosed, convertible_note, private_equity, debt_financing, angel, grant are the types of fundings from which we need to find in which funding type the amount lies in the range 5 to 15 million USD.

Herein we look in the data for the types of investment and then find the mean to know the amount invested. Also, our customer wants to invest the data between the range of 5 to 15 million. We search for the value accordingly in our output. We can see that venture lies in the given range (first in the graph)



2. Country type analysis

In this type of analysis we find out the countries which are the english speaking countries (as this is the second constraint of our customer) and then find the top three investors. From the output we can find that the top three countries investing are USA, China and India.



3. Sector type analysis

For sector type analysis, we find out the top three sectors in the top three countries. Out of the number of sectors present, we sort the data on the basis of the top three sectors. The following graph shows the results.



In this fast growing world, investing properly is a necessity but thanks to the technology! It made it much simpler by helping us analyse the data.