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How to use Crunchbase Rank and Trend Score to find the most influential companies and identify trends

Nov 03, 2016 by Dave Schools

Crunchbase data changes rapidly. New companies start up, new products are launched, new rounds of funding are announced. People change jobs. To help users prioritize the profiles in their lists and searches, Crunchbase Pro provides users with two specialized tools to leverage this dynamic information: Crunchbase Rank and Trend Score.

How It Works: Crunchbase Rank

In Crunchbase, the top 100,000 profiles in each category (i.e., Companies, Investors, Funding Rounds, Acquisitions, etc.) are assigned a ranking called Crunchbase Rank.

Crunchbase Rank is determined by an algorithm that takes into account the number of connections of a profile within the platform, the amount of community engagement, funding events, news articles, acquisitions, and more. These factors decay over time at varying rates depending on the factor (i.e., news decays more quickly than size of funding rounds).

The benefit of Crunchbase Rank is it lets users prioritize their search results by influence. The higher the Rank, the more influential the profile is compared to its peers. The lower the Rank, the less important the profile is to the community.

A simple search for companies with a Rank less than ten returns the top ten most highly ranked companies to the Crunchbase platform. You would likely recognize companies like Facebook, Alibaba, Github, etc.

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How It Works: Trend Score

A company’s Rank isn’t permanent. Events such as product launches, funding events, leadership changes, and news affect a company’s Crunchbase Rank. When events like these happen, it signifies a trend.

While Rank shows context, Crunchbase Trend Score demonstrates activity. As a company moves up or down in Rank, its Trend Score is impacted. Trend Score measures the rate of a company’s activity on a 20-point scale. Scores closer to +10 mean it’s moving up in rank much faster compared to their peers. Scores closer to -10 means it’s moving down.

For example, a company that announces its first funding round will likely experience a jump in its Rank, pushing its Trend Score up as its page views, article counts, funding amount, team members, etc., begin to increase.

Add Trend Score to your search to capitalize on developing trends.


Four examples of how to use Crunchbase Rank and Trend Score in your search

Now that we’ve looked at what Rank and Trend Score are and how they work, let’s look at some examples.

  1. Prioritize a Sales Prospect List

A digital agency has developed real estate software they’d like to sell to established real estate companies in the United States that have not undergone much digital innovation.

Here’s their search:

  • Category Group: Real Estate
  • Headquarters Location: United States
  • Funding Amount greater than $30m
  • Status includes IPO and Operating
  • Founded Date before 2008

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The search criteria generates 129 companies.

To prioritize their outreach plan, they look at Crunchbase Rank to see the best target companies listed in ascending order. The agency believes their software can benefit both the companies at the top and middle of this list the most.

Their logic is this: the more known and recognized a company (the lower its Rank number), the more likely they would have bigger budgets and teams, and therefore would be able to afford the agency’s software. They also include companies in the middle of the list as these companies might be easier to access. They click the statistics and identify the median as 7,289.

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Finally, they add an additional search filter to show only the companies with a Rank less than 7,289, resulting in a more manageable list of 62 companies. They save this list and begin outreach. In this scenario, the agency used Crunchbase Rank to prioritize prospects by greater chances of success.

  1. Find your next Investor

Another example is an entrepreneur looking for a venture capital firm on the East Coast to invest in her advertising software company. She wants a well-established, well-respected firm that makes a higher number of investments.

Here’s her search:

  • Location: New York or Washington DC
  • Portfolio Companies: Software and Advertising
  • Number of Investments greater than 100
  • Crunchbase Rank less than 1,000

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She added the Crunchbase Rank filter (of less than 1,000) to narrow her search to the top 1% of venture capitalists in her market segment. It helped her find the twelve top ranked VCs for her particular startup.

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  1. Discover investment opportunities

A small venture capital firm wants to lead a seed round for an up-and-coming, yet still undiscovered gaming startup in the United States.

Here’s their search:

  • Headquartered in the United States
  • Category Group: Gaming
  • Number of Articles: less than 3
  • Last Funding Date is blank: True
  • Trend Score: greater than 2

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The criteria generated a list of thirteen companies.

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The VC firm identified a list of relatively unknown US-based gaming startups based on the small number of articles written about them – zero articles would be too low and more than three would be too much press. The VC firm wants to lead a seed round so they put the last funding date as blank to ensure no funding has taken place yet. Finally, they selected a Trend Score of greater than 2 because they want startups that are building connections fast and growing quickly. They might even bump the Trend Score up to 3 (returns a list of four startups, see screenshot below), and begin reaching out to these first.

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  1. Diversify your portfolio

An analyst at a VC firm is tasked with finding media and entertainment startups located outside the coastal tech hubs (NYC and SF) and founded by female entrepreneurs who have raised funding and worked previously at Google, Amazon, or Apple.

Here’s the search:

  • Media and entertainment companies
  • Headquartered in the United States, excluding San Francisco and New York
  • That have raised greater than $1 million
  • And have female founders
  • Who have previously worked at Google, Amazon, or Apple.

screenshot9

The search returns thirteen companies.

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The analyst shares this list with one of the principals at the company. The principal responds, “Have any of these companies been in the news recently?”

“Hold on,” says the analyst. The analyst adds a Trend Score filter of greater than 0.1 in the last 7 days. A positive Trend Score means the company’s Rank increased from expanded activity on its profile. The added filter yields two positively trending companies:

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The analyst shows Accompany and Kazaana to his boss. “Let’s start with those two,” says the principal.

Try it out

From these four examples, you’ve seen how Crunchbase Rank and Trend Score can be used to quickly identify prominent players (or less prominent players) and take advantage of market trends.

Now it’s your turn. Use these two specialized tools to generate more targeted search results based on context and activity. Search or sort by Rank to prioritize based on influence and assess a company’s level of activity using Trend Score.
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Feel free to reach out to us with any questions at feedback@crunchbase.com. Check back here soon to learn more about other Crunchbase Pro tools.

 

Follow Dave Schools on Twitter @daveschoools.