Access Crunchbase company predictions powered by proprietary private company data and AI models that help you focus on the companies and decisions that matter most.
With Crunchbase’s Predictions and Insights API package, you have access to closure predictions data. Closure Predictions utilize Crunchbase data, including historical performance, to forecast the likelihood of a private company to close their doors providing a probability score and its supporting evidence.
Incorporate predictions into your own internal models and tools to identify opportunities and mitigate risks, early on.
Closure Predictions gives you access to:
- Mitigate Risk: Identifying the likelihood of a company’s closure helps investors proactively assess the risk of losing their investment or need to reallocate their funds, by either avoiding or limiting their exposure to underperforming companies. Delve into prediction probabilities and supporting indicators, like financial decline along with layoffs or restructuring data, to quickly gauge and mitigate risks.
- Competitive Edge: Knowing the probability for a company to close gives investors and market analysts advanced strategic insights. Reviewing prediction probabilities and supporting indicators like runway speculation and headcount reduction, can help predict shifts in market dynamics or spot potential opportunities for market share acquisition.
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Portfolio Optimization: Understanding the potential for a company to close helps investors build their portfolio and influences the recommendations analysts provide clients on investments to pursue or avoid. Monitoring this likelihood can help make strategic decisions in response to changing market conditions to build a more resilient portfolio.
The following data will be included as supporting evidence to explain the assigned probability score for Closure Predictions:
- Financial Decline: Canceled commercial contracts, bankruptcy, or declines in revenue, sales, earnings, profit margins, dividends, returns, or stock performance.
- Product Usage Decline: Decreased product engagement.
- Customer Decline: Decreases in the number of customers or users.
- Headcount Reduction: Layoffs, workforce reductions, or hiring freezes.
- Operations Contraction: Reductions or sales of facilities, market exits from regions, or withdrawals from industries.
- Runway Speculation: Approaching 18-24+ months since the last funding round, the need for capital may be more probable.
- Layoffs or Restructuring: Cost reduction, operational efficiency improvements, restructuring plans, and employee headcount reduction.
- Media Coverage and Public Sentiment: A sudden increase in media coverage with negative public sentiment recently.
- Legal and Regulatory Proceedings: Security breaches, compliance or regulatory issues, anti-trust lawsuits, and legal challenges.
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