Access to reliable data is essential to making informed business decisions. Having comprehensive and up-to-date information on private companies can be the difference between success and failure.
Let’s delve into the ins and outs of sourcing private company data, exploring today's best practices, challenges, and innovative solutions.
What is private company data?
Private company data refers to a wide range of information about companies that are not publicly traded on stock exchanges.
Unlike public companies, which are legally required to disclose certain financial data and operational details, privately held companies are not obligated to do so.
This makes accessing their data inherently more challenging.
Private company data typically includes:
- Firmographic information (such as company name, size, industry, and location).
- Financial performance (such as revenue, profitability, and growth rates).
- Executive team details (such as leadership and organizational structure).
- Ownership structures (such as a list of major shareholders).
- Funding history (such as funding rounds and lead investors).
This data is crucial for venture capital investors looking to assess the viability of potential investments, perform due diligence, or gain competitive intelligence.
Best data sources for private company information
Gathering private company data requires access to various sources, each offering unique insights and benefits.
Below are some of the most reliable sources.
1. Private company databases
There are platforms out there that specialize in researching private companies and aggregating data on them.
These databases collect information from multiple sources, including web scraping, venture capital firms, corporate investors, and companies themselves. Some well-known platforms include PitchBook, Crunchbase, and Owler.
These platforms can give you in-depth data on venture capital backing, private equity investments, financial information, and other actionable insights.
2. Public records and filings
While private firms are not required to disclose as much information as public companies, they still interact with regulatory bodies and government agencies. In the U.S., the Securities and Exchange Commission (SEC) and state registries may have filings that provide insights into a company's operations.
Similarly, in other countries, local regulatory bodies often maintain records that can be accessed for information on private entities.
3. Professional and social networks
Platforms like LinkedIn and other professional networks are valuable for gathering data about a company's leadership, employee growth signals, and even corporate culture.
Additionally, these platforms can offer clues about a company’s health through the activity of its employees, such as changes in job titles, company growth trends, or hiring activity.
4. News and press releases
Monitoring news outlets, press releases, and industry publications can offer valuable information about private companies, especially regarding recent developments, partnerships, or financial performance. Tools like Google Alerts can help keep track of relevant mentions.
Where to get private company data?
Knowing the best sources for private company data is one thing. However, extracting and using that data effectively is another challenge entirely.
Here are some strategies and considerations for sourcing private company data:
1. Data providers
Many data providers specialize in aggregating private company data and selling it to businesses.
At Coresignal, we offer extensive datasets on private companies, allowing you to access detailed information that can be tailored to your specific needs. Our company database includes data from over 106 million private companies worldwide, providing firmographic details, funding information, and much more.
This dataset is particularly valuable for investment firms and market researchers looking to scale their data-driven decision-making processes.
2. Business magazines and platforms
Forbes, a leading business publication and media outlet, is a trusted source for insights into private company financials and performance. Through its in-depth coverage of entrepreneurship, industry trends, and company profiles, Forbes provides valuable analysis of private companies’ innovations, leadership approaches, and market strategies.
Other sources include Business Wire, Harvard Business Review, and other private company data distributors
3. Leveraging technology and AI
Artificial intelligence (AI) and machine learning (ML) tools can be employed to mine vast amounts of data from various sources, including the web, social media, and public records.
These technologies can automate the collection and analysis process, making it possible to identify trends and opportunities that might otherwise go unnoticed.
4. Web scraping
For those with technical expertise, web scraping can be a powerful tool for extracting data from company websites, job boards, and other online platforms.
However, it’s important to consider the legal and ethical implications of web scraping and the data's quality and reliability.
5. Combining multiple data sources
The most reliable approach to sourcing private company data often involves combining multiple data sources.
Cross-referencing information from databases, public records, financial markets, and alternative data sources creates a more comprehensive and accurate picture of a company’s health and potential.
What can you do with private company data?
Now you know what private company data is and where to get it. Let’s talk about how to use it:
- Investment analysis. Evaluate potential investment opportunities by assessing the financial health, market position, and growth prospects of private companies.
- Competitive intelligence. Gain insights into competitors’ strategies, market share, and operational efficiencies to refine your business approach.
- Market research. Identify market trends, emerging players, and industry benchmarks.
- Sales and lead generation. Target high-quality leads and refine sales strategies by understanding the ideal customer profile of prospective clients or partners.
- Due diligence. Perform comprehensive background checks and risk assessments before making investment decisions.
- Talent acquisition. Analyze employee growth, skills, and company culture to identify potential hires or understand workforce dynamics.
Private vs. public company data
Understanding the difference between private and public company data is also important. Let’s examine some of the key distinctions.
1. Availability and transparency
Public companies are legally required to disclose quarterly earnings reports, annual financial statements, and other material disclosures that provide insights into the company’s performance and strategy. In contrast, private companies are not obligated to disclose this level of detail, making their data more difficult to obtain.
2. Data quality and reliability
The data available for public companies is typically more standardized and reliable, given the regulatory requirements and scrutiny they face.
Private company research, on the other hand, can be inconsistent and vary in accuracy depending on the source.
As a result, data quality is a key challenge when dealing with private company data.
3. Strategic insights
Venture capitalists and private equity firms often use insights derived from public company data to make investment decisions, compare performance across industries, and forecast market trends.
Private company data, while more challenging to obtain, can offer unique strategic insights, particularly when evaluating startups, potential acquisitions, or new emerging businesses.
4. Usage and compliance
Public company data is widely used in financial models, market analysis, and compliance checks. However, the use of private company data requires careful consideration, especially when it comes to compliance with data protection regulations.
Ensuring that data is sourced and used in a compliant manner is essential to avoid legal consequences.
Why is Coresignal the best provider for private company data?
Coresignal stands out as one of the leading providers of private company data, offering a comprehensive and scalable solution tailored to meet the needs of businesses, investors, and researchers.
Here’s why Coresignal is the best option for sourcing private company data:
- Always fresh private company data. At Coresignal, we provide access to a vast dataset that includes information from millions of private companies globally. The data is continually updated, ensuring that you receive the most current and relevant insights for your needs.
- High-quality firmographic data. With Coresignal, you can access detailed firmographic data such as company size, founding date, headcount, industry classification, and location. This granular level of detail allows you to filter and select companies that meet your specific criteria.
- Flexible data solutions. Whether you need bulk data for large-scale analysis or specific data points for targeted insights, Coresignal caters to various business needs.
- Reliable and compliant data sourcing. Coresignal strongly emphasizes data quality and compliance. We only source data from public and legally compliant sources, ensuring that you can use the information confidently and responsibly.
Our commitment to providing fresh, high-quality private company data makes us an invaluable resource for businesses seeking a competitive advantage.
Submit an inquiry, and we will help you identify your exact data needs.
