PitchBook Data
A company that deals in research, data, and technology of companies trading in the Capital Markets
What is PitchBook Data?
Pitchbook Data is one of the most iconic innovations in finance and business. It is a company that deals in research, data, and technology of companies trading in the Capital Markets.
John Gilbert founded this company in 2007, and the company received a significant investment in 2009.
Additionally, the company secured an investment amounting to $10 million from an American financial company known as MorningStar in January 2016. This was before its acquisition by MorningStar in a $180 million deal.
John Gilbert is a known Data Scientist. He has over 17 years of experience in developing technology for companies in the finance industry. John Gilbert worked with private equity firms, venture capitalists (VC), and other financial and investment firms.
Many sources describe this company as a Saas provider, which stands for software as a service. SaaS is a software licensing business model that allows companies to buy software licensed on a subscription.
The company is headquartered in Washington D.C and Seattle, United States of America. In addition, the company operates in other regions like London, San Francisco, Mumbai, and Hong Kong.
According to PRNewswire, on 19th October 2017, the company announced its expansion to cover European financial markets.
Cumulatively, this added 171,000 new private companies and all their financial data. Moreover, this move integrated France, Germany, the United Kingdom, Belgium, Ireland, Luxembourg, Sweden, and Norway and opened up Europe to investment from different parts of the world.
Key Takeaways
- Pitchbook Data Inc. Is an American Software licensing company that Operates in the finance industry. The company deals with research, data, and technology tools used in the finance industry.
- The company was founded in 2007 by John Gilbert. Later, the company was wholly acquired by Morning-Star, an American Financial service firm.
- The platform provides a list of companies that includes both private and public companies.
- It allows a person or firm to explore the companies the financial sponsor has invested in and the companies the investor has acquired.
- The client is also provided with data concerning deals associated with different companies.
- It enables investors to determine the liquidity as well as the solvency of the company. This allows a company to determine the financial health of the prospective company as a worthwhile investment.
- The platform also allows clients to research advisors. Information such as the services offered, locations, and preferred industries provided
Understanding Pitchbook Data
Pitchbook Data Inc. is an American software licensing company that Operates in the finance industry. The company deals with research, data, and technology tools used in the finance industry.
The company provides a holistic database for research revolving around financial markets. The company works with various kinds of firms and institutions.
Nevertheless, the data provided by Pitchbook Data Inc stretches from the financials and financial history of Startups to Public and Private Limited companies. In a simpler definition, it is a platform that offers digital application tools used in the finance industry at a prescribed subscription fee.
It uses the data and information collected from deals, companies, investors, people, Advisors, and Mergers and Acquisitions (M&A).
The company was founded in 2007 by John Gilbert. Since the company secured seed funds in 2009 and later was wholly acquired by Morning Star, John Gilbert remained the company's CEO.
In 2018, the company boasted of revenues amounting to 90 Million Dollars. The company is not alone in this business model. It has several competitors that equally or similarly do this type of business.
The companies in direct competition with this company include Grata, Peachshore, CB Insights, and others.
Grata Data is one of the Competitors, but it is important to note that Grata is more focused on uncovering undiscovered companies with potential. While the latter is broad and wide in scope.
This company is the leader in providing resources for comprehensive financial data, detailed market reports, and insights encompassing all capital markets.
This company helps to discover new industries, territories, and opportunities to pursue based on the flow of venture capital and private equity investments.
Importance of PitchBook Data
SaaS (Software as a Service) is very important in the financial industry. They are indispensable, and business can not be done without them. Therefore, there are several important things that Pitchbook Inc. has in the market.
1. Advisors
The Pitchbook platform also allows clients to research Advisory firms. The list below includes the kind of data the platform offers.
- Services provided
- Deals achieved
- Investors
- Contact information
This is essential to investors and analysts for due diligence when analyzing potential investments.
2. Company Research
It allows a user to research companies. This tool provides a list of companies that includes both private and public companies.
It provides data on several aspects of a company which include:
- Backing of the company
- Location of the company
- Investors
- Ownership status
Firstly, it allows a person to know the company's executives and its board members. This includes up-to-date contact information for the company.
Secondly, the client is allowed to research the financial statements of different companies. This encompasses financial history, valuations, debt status, and other relevant information.
3. Deals of the past and present
The client is also provided with data concerning deals associated with different companies.
The information on deals includes the following:
- Deal Size
- Deal date
- Valuations
- Deal status
- Investors Involved
Therefore, using the pitchbook platform, it becomes easy to know a particular company's past and current financing activities.
4. Debt status of Companies
The pitchbook platform allows clients to explore the debt situation of companies. This enables investors to determine the liquidity of the company.
Some of the information that is provided by this platform includes:
- Type of debt
- Date of issue of debt
- Total new debt
- Debt amounts and other relevant information
5. Financials
It provides vital data on the financials of various companies. Some of the data provided by the platform include the following:
- Statement of Financial Position
- Statement of Comprehensive Income
- Statement of Cash Flows
- Financial ratios
The platform breaks down the financial health of the company, allowing clients to evaluate the organization's financial standing.
The platform breaks down the assets, liabilities, shareholders' equity, and other vital accounting information.
6. News and Analysis
The platform provides the latest financial news and analysis, from the latest deals to press releases that are essential to the finance industry.
The latest trends enable analysts to adjust their forecasts and be up to date. In addition, the platform features reports like the Global M&A Report.
Uses of PitchBook Data
Pitchbook Data is used for several things in the finance industry.
The following are some of the uses of the platform.
1. Used to identify potential investment opportunities
This platform can be used to research and identify potential investments. This company provides a list of companies that includes both private and public companies.
The list of the companies is wide-ranging from publicly traded companies.
2. Used to assess Mutual funds
The software allows analysts and companies to get information on funds. Consequently, a company can measure the fund's performance based on financial metrics such as Internal Rate of Return and Cash Flow multiples like DPI and others.
Furthermore, the platform makes it easier to compare the performance of funds. Also, it allows one to discern which Limited partners form part of the fund and the size of their commitments.
3. Used to evaluate companies with potential
It allows a person to know the company's executives and its board members. This includes up-to-date contact information for the company.
Additionally, company location details are highlighted and provided by the database.
The platform gives investors access to millions of companies.
4. Used to evaluate advisors of the company
The platform also allows clients to research Advisors. The client can know what services are offered, deals successfully achieved, and contact details of the firm.
Additionally, information regarding the teams they rely on is provided on the database.
5. Used to identify and evaluate a company's debt.
The pitchbook platform allows clients to explore the debt situation of companies. It enables investors to determine the liquidity and solvency of the company. Therefore, the data allows investors to make informed decisions regarding investments.
6. Used to determine and analyze a company's financial status.
It provides important information on the financials of various companies.
Information such as Balance Sheets, Income Statements, Statements of Cash Flows, ratios, and comprehensive Income Statements are provided.
The platform breaks down the financial health of the company, allowing clients to evaluate the organization's financial standing.
PitchBook Data Advantages
In the finance industry, it offers several advantages to the company that purchases the license of their platform. The advantages can be broken down into two parts. This includes the general advantage and specific advantages.
The general advantage of using this platform is that it provides research material and data for investors, individuals and companies.
While specific benefits are broken down as follows:
- It lets the individual or company know which companies are available for investment. This is because it provides a list of companies, details of the Executives, location, and up-to-date contact details.
- It allows a company to identify the deals that a particular company has had in the past. It also allows one to see the dates of the deals, investors involved in the deal, and other data.
- The platform helps companies and investors conduct due diligence on potential companies they may want to invest in.
- The platform provides many resources for research analyst teams.
- The Pitchbook platform helps analysts and companies to get information on funds. This is good because a company can measure the fund's performance based on financial metrics such as the Internal Rate of Return and others.
- It helps Research analysts with financial data from financial statements needed for creating financial models and forecasts.
- It also allows investors to know the liquidity risks associated with the company. This is because the database provides the details of a company's debt.
PitchBook Data Disadvantages
Alongside the benefits seen, this data platform has some disadvantages too. Just like other products, there is a downside to this platform.
Two main disadvantages that come with this software are:
1. Cost
The main criticism of this software license is mostly related to its price. Although the license is priced per year, the software costs $25,0000 for three users and $7000 for additional users.
Many people have reviewed the software as expensive. It has been compared to alternatives like CrunchBase, and it is evident that Pitchbook Data costs more.
It is argued that only stable and grown companies can afford the license, but new small firms may not. Furthermore, small companies with small teams would have challenges utilizing the platform, so the research might not be worth the license cost.
2. Technical Expertise
The platform requires training on how to use it. In addition, there is a learning curve to using this database, and employees may require training on how to use the platform.
Just like any other software, there is a need for time to introduce analysts to the software and guide them on how to get started.
In addition to time, it might also require resources such as additional funds to train the users on how the platform works.
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