Reference data is attributes that are added to security data records, such as industry classification, country code, and start date.
Traditional industry groups, such as the Morningstar Global Equity Classification System (GECS) used to classify publicly traded companies, still largely reflect the foundations of the industrial economy. However, as the global economy continues to evolve, an industry classification system that reflects the real-world economic ecosystem can provide investors with valuable insight into the drivers of future economic growth.
For example, PitchBook’s industry vertical classification provides a taxonomy for discovering innovative companies exposed to similar growth drivers. Managed by PitchBook’s emerging technology analysts, this classification framework groups companies that focus on shared niche or specialized markets across multiple industries.
Vertical classification is determined in several ways, including compliance with venture capital flows and the emergence of startups pursuing similar high-growth business opportunities or innovative technologies. Industry verticals are not mutually exclusive, so companies can be classified into multiple verticals.
For industries achieving the highest deal value, PitchBook’s in-house industry experts target companies on board based on proprietary research, industry-recognized ecosystem maps, product documentation, customer use cases, and investment themes. Verify. This process provides a comprehensive classification of public and private companies in industries with the best long-term growth potential, selected by analysts.
PitchBook’s industry classification system is multifaceted. Assign industry codes that align with public markets and enhance data integration at the portfolio level. They also assign private companies to more than 141 “emerging sectors.” This is an early but growing field of thematic investments that could become future industries, such as psychedelics and long-term energy storage.
