7  Private Data Sources

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The depth and breadth of information can often dictate the boundary between success and failure for founders and their startups. Private data sources are a particular advantage to entrepreneurs who have access to them. These data sources offer detailed, proprietary insights that are not readily available through public data. They resources encompass a wide array of databases and platforms, each catering to different facets of market research, competitive analysis, and consumer behavior.

7.1 Why Private Data Matters

Private data sources provide:

  • Detailed Market Insights: Access to granular data about market trends, industry benchmarks, and consumer preferences.
  • Competitive Edge: Information from these sources can give businesses a competitive advantage by providing insights that are not accessible to everyone.
  • Risk Mitigation: Helps in forecasting and mitigating risks by providing detailed historical data and predictive insights.

Entrepreneurs who have access to these sources, and understand how to effectively leverage them, can make informed decisions, anticipate market movements, and tailor their strategies to meet precise market demands.


7.2 Ethics of Using and Sharing Private Data

Privacy and Data Governance

As powerful as private data sources are, they come with significant ethical responsibilities, particularly concerning privacy, data governance, and compliance with legal standards.

Privacy and Confidentiality: When dealing with private data, it is crucial to ensure the confidentiality and privacy of the information are maintained. Entrepreneurs must be vigilant about:

  • Data Protection Laws: Complying with local and international data protection laws, such as GDPR in Europe and CCPA in California, which dictate how data should be handled and protected.
  • Consent and Transparency: Ensuring that data is collected and used transparently, with the consent of all parties involved, particularly when dealing with sensitive information.
Use of BYU Library Databases

In general, the private databases in the Harold B. Lee Library is freely permitted for use in classroom work. They generally exclude using the databases for commercial purposes including internships, consulting, and employment in non-BYU companies. Fortunately for entrepreneurial management majors at BYU, our use is for educational purposes. There are individual documents in these databases that would sell for thousands of dollars to enterprise customers but are free to you for educational use. While it is possible to abuse your access to these proprietary databases, you should not.

Responsible Use of Data: Ethical use of private data also means using it responsibly:

  • Bias and Fairness: Being aware of and mitigating any biases in the data that could lead to skewed conclusions or unfair business practices.
  • Accuracy and Integrity: Maintaining the accuracy and integrity of data by using reputable sources and verifying the information before application.

Sharing and Distribution: The sharing and distribution of data must be handled with care to avoid misuse:

  • Confidential Agreements: Using nondisclosure agreements (NDAs) where necessary to protect sensitive information.
  • Controlled Access: Limiting data access to only those who need it for legitimate business purposes, thus minimizing the risk of data breaches or leaks.

Ethical Considerations in Entrepreneurship: Ultimately, ethical considerations in using private data sources should guide how entrepreneurs collect, analyze, and apply data to ensure that their practices contribute positively to their business without compromising ethical standards.

Understanding and adhering to ethical guidelines when using private data sources is not just about compliance; it’s about building trust with customers, partners, and the public. Entrepreneurs who prioritize ethical data practices are better positioned to build sustainable and respected businesses.


7.5 Competitor Analysis

PitchBook

PitchBook is a comprehensive data provider that offers in-depth information on the global capital markets, focusing on private equity, venture capital, and mergers & acquisitions. It is designed to help users conduct rigorous financial research, competitive analysis, and market trend analysis.

Use Pitchbook at BYU

Must first create a login using a byu.net email address. A byu.net email alias can be created at https://my.byu.edu under Communication using the Email Alias Manager. Research and analyze companies, deals, funds, investors and service providers across the entire private investment lifecycle. For educational use at BYU only. Learn more here.

Features and Capabilities

  • Extensive Company Databases: PitchBook provides detailed profiles for companies worldwide, including financials, key personnel, investments, and fundraising history.
  • Investment Insights: Tracks investments and deals across the private equity and venture capital landscapes, giving users insights into industry trends, investment returns, and deal flow.
  • Market Analysis Tools: Offers advanced tools for analyzing market trends, benchmarking, and producing detailed forecasts and valuations.

Practical Applications in Entrepreneurship

  • Startup Valuation and Fundraising: Entrepreneurs can use PitchBook to assess their startup’s valuation against comparable companies, understand funding landscapes, and identify potential investors.
  • Competitive Intelligence: Provides comprehensive data that can help entrepreneurs understand their competition’s funding history, investment strategy, and market positioning.

The depth and breadth of information provided can be overwhelming for new users, requiring a steep learning curve to navigate effectively.

PitchBook is an essential tool for anyone involved in the finance and investment sectors, particularly useful for entrepreneurs looking to navigate venture capital, private equity, and M&A landscapes. It empowers users with the data needed to make informed decisions, though its full utility might be constrained by access costs and the complexity of its data systems.

Preqin

Preqin is a leading provider of data on alternative assets, including private equity, venture capital, hedge funds, and real estate.

Features and Capabilities

  • Private Market Data: Extensive information on private equity, venture capital, hedge funds, and real estate investments.
  • Fund Performance: Data on fund performance, investor mandates, and capital allocations.
  • Investor Profiles: Detailed profiles of institutional investors, including investment preferences and capital commitments.
  • Deal Tracking: Insights into recent deals, exits, and mergers across the private markets.

Applications in Entrepreneurship

Entrepreneurs can use Preqin to:

  • Identify potential investors or partners in venture capital or private equity.
  • Track investment trends in their industry to understand where capital is flowing.
  • Benchmark their business against private market competitors.
  • Analyze the performance of private market funds and track competitors’ investment strategies.

Ethical and Responsible Use

Preqin provides access to sensitive data on private market investments. Entrepreneurs should ensure that this data is used responsibly for internal analysis and strategy, adhering to ethical guidelines for competitive intelligence.

PrivCo

PrivCo is a financial data provider that specializes in private company information, offering insights into company financials, funding, and acquisition activity.

Use PrivCo at BYU

PrivCo is the premiere source for business and financial data on major, non-publicly traded corporations, including family owned, private equity owned, venture backed, and international unlisted companies. First-time users must create a username.

Features and Capabilities

  • Private Company Data: Detailed financial information on private companies, including revenue, employee size, and funding rounds.
  • Funding & M&A: Track venture capital investments, private equity deals, and mergers and acquisitions.
  • Industry Comparisons: Compare financials of companies within specific industries or regions.
  • Growth Indicators: Data on a company’s growth potential based on funding and operational metrics.

Applications in Entrepreneurship

Entrepreneurs can use PrivCo to:

  • Analyze competitors in private markets to better position their own ventures.
  • Identify potential acquisition targets or investment opportunities.
  • Track funding trends and evaluate investment in a specific industry.
  • Benchmark against similar companies to gauge growth potential.

Ethical and Responsible Use

PrivCo provides sensitive private company data that should be used responsibly, particularly in competitive settings. Ensure that data is only used for internal analysis and business strategy, in accordance with BYU’s ethical guidelines.

Mergent Online

Mergent Online provides comprehensive financial information on both public and private companies, with historical data, equity pricing, and financial ratios.

Features and Capabilities

  • Company Financials: Detailed balance sheets, income statements, and cash flow data for public companies.
  • Private Company Information: Limited access to private company data, with a focus on financial performance.
  • Stock and Bond Data: Historical stock prices and bond performance, useful for investment analysis.
  • Custom Reports: Generate detailed financial reports with historical data for companies of interest.

Applications in Entrepreneurship

Entrepreneurs can leverage Mergent Online to:

  • Analyze public company financials to understand industry benchmarks and trends.
  • Research competitors’ financial health and growth trajectories.
  • Identify potential investors or partners through financial analysis.
  • Generate reports that support fundraising efforts or business planning.

Mergent Intellect

Mergent Intellect provides data on both public and private companies, with additional tools for market analysis and consumer demographics. It integrates data from Dun & Bradstreet to offer robust company profiles.

Use Mergent Intellect at BYU

Follow the directions in this video to create a list of company locations that fit the criteria for competitors.

Features and Capabilities

  • Private Company Data: Access comprehensive company profiles with operational and financial data.
  • Demographics: Tools for mapping and analyzing demographic data, including consumer spending trends.
  • Company Comparisons: Compare companies across industries or regions to assess competition.
  • D&B Integration: Includes data from Dun & Bradstreet for deeper insights into private company operations.

Applications in Entrepreneurship

Entrepreneurs can use Mergent Intellect to:

  • Research both public and private competitors in depth.
  • Identify potential partners or acquisition targets by evaluating company performance.
  • Use demographic analysis tools to understand market potential in specific regions.
  • Explore operational data to assess the health and stability of competitors.

Gartner

Gartner is a technology research and advisory firm that provides insights on technology trends, market performance, and competitive positioning within the tech industry.

Features and Capabilities

  • Tech Industry Insights: Comprehensive research on technology sectors, emerging trends, and digital innovation.
  • Magic Quadrant: A tool that visually maps companies’ strengths and weaknesses within the tech market, ranking competitors based on their vision and execution.
  • Forecasts and Analysis: Market share forecasts and competitive analysis focused on IT, AI, and digital transformation.
  • Consulting Services: Access to advisory services for IT strategy and implementation.

Applications in Entrepreneurship

Entrepreneurs in tech can use Gartner to:

  • Understand where their company or product fits in the broader tech landscape.
  • Gain insight into emerging technology trends and potential disruptive innovations.
  • Analyze competitors’ strengths and weaknesses through the Magic Quadrant.
  • Benchmark their technology against competitors in terms of market readiness and innovation.

Ethical and Responsible Use

Gartner provides strategic insights that are valuable but should be used with care. Ensure that data is applied ethically, particularly when evaluating competitors or using proprietary Gartner tools like the Magic Quadrant.

Louis-Harris Poll

Louis-Harris Poll offers consumer polling data that helps companies understand public opinions on products, services, and brands.

Features and Capabilities

  • Consumer Sentiment: Regularly updated polling data on consumer opinions, behaviors, and trends.
  • Brand Perception: Insights into how consumers perceive specific brands or product categories.
  • Product Preferences: Data on consumer preferences for products and services across industries.
  • Public Opinion: Nationwide surveys on societal issues, marketing trends, and emerging consumer attitudes.

Applications in Entrepreneurship

Entrepreneurs can leverage Louis-Harris Poll data to:

  • Assess brand perception and public opinion for their own or competitors’ products.
  • Understand consumer trends to tailor products and marketing strategies.
  • Explore how broader societal trends might impact consumer behavior in their industry.
  • Use polling data to support market research and validate product-market fit.

Ethical and Responsible Use

Polling data can be highly influential in shaping business decisions, so it’s essential to use it responsibly. Follow BYU’s ethical guidelines when interpreting and applying consumer data in competitive contexts.

Harris Interactive

Harris Interactive is a market research and consulting firm that specializes in consumer insights, brand tracking, and public opinion polling.

Features and Capabilities

  • Consumer Insights: Provides in-depth data on consumer attitudes and behaviors.
  • Brand Tracking: Regular tracking of brand performance and public perception across industries.
  • Customized Surveys: Ability to generate custom survey data tailored to specific market research needs.
  • Public Opinion: Comprehensive polling on societal issues, brand trust, and consumer trends.

Applications in Entrepreneurship

Entrepreneurs can use Harris Interactive to:

  • Track how their brand is perceived compared to competitors.
  • Generate custom surveys to test new product ideas or marketing campaigns.
  • Explore consumer trust and brand loyalty trends in their industry.
  • Use polling data to inform marketing strategies and product development.

Ethical and Responsible Use

Ensure that consumer data from Harris Interactive is used ethically and transparently. Avoid manipulating polling data and always respect consumer privacy when applying insights to business strategy.

Capital IQ

Capital IQ, a division of S&P Global, provides financial and market data on public and private companies, enabling detailed financial analysis, valuations, and competitive benchmarking.

Features and Capabilities

  • Company Financials: Comprehensive financial data, including income statements, balance sheets, and cash flow reports.
  • Valuation Tools: Tools for company valuation, mergers and acquisitions (M&A), and private equity analysis.
  • Industry Data: Industry-specific metrics, ratios, and benchmarks for competitive analysis.
  • Screening: Advanced screening tools to find companies or investments that meet specific criteria.

Applications in Entrepreneurship

Entrepreneurs can leverage Capital IQ to:

  • Analyze competitors’ financial health and market position.
  • Conduct in-depth financial valuations to support fundraising efforts.
  • Research potential acquisition targets or partnership opportunities.
  • Benchmark their company’s performance against industry standards.

Ethical and Responsible Use

Capital IQ offers extensive financial data, which should be used in compliance with legal and ethical standards. Entrepreneurs must avoid using this data inappropriately, especially in M&A scenarios or when analyzing competitors.


7.7 Conclusion

Data is critical for making informed decisions. The private data sources covered in this chapter provide entrepreneurs with invaluable insights across a wide array of business functions, from analyzing industry trends to understanding consumer behavior, tracking competitors, and monitoring market movements. Leveraging these tools effectively can help entrepreneurs anticipate challenges, uncover opportunities, and refine their strategies to stay competitive.

However, with great access comes great responsibility. It is essential to apply the data ethically and responsibly, adhering to institutional guidelines and ensuring that data is used to enhance rather than manipulate business practices. By doing so, entrepreneurs can harness the full potential of these resources to build sustainable, innovative businesses that thrive in their industries.