In a recent development, Wall Street veteran Linda Jones drew attention to the likelihood of Ripple Labs going public through an Initial Public Offering (IPO). Jones referenced data from Pitchbook, a renowned resource for venture capital and private equity, highlighting the firm’s algorithm that analyzes past successful exits of private companies.
The algorithm’s conclusion is that Ripple has a 98% chance of pursuing an IPO. This prediction comes amidst growing discussions about Ripple’s regulatory victory and the potential timing of an IPO.
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Examining the Algorithm’s Analysis
Jones emphasized the thorough evaluation process employed by Pitchbook’s algorithm. It considered a wide range of data points derived from the examination of 64,000 successful exits over the past five years. This encompassed both IPOs and merger and acquisition (M&A) deals.
Key factors assessed by the algorithm included the frequency and scale of fundraising rounds, patent holdings, acquisition activities, workforce size, market size, revenue expansion, active investor involvement, and the overall financial maturity of the companies.
Pitchbook has an algorithm that analyzed 64,000 past successful exits of private companies by IPO or merger & acquisition (M&A) since 2018. They analyzed data such as frequency and size of fundraising rounds, number of patents, number of employees, number of acquisitions made by… pic.twitter.com/DhYtlsC9G7
— Linda P. Jones (@LindaPJones) August 30, 2023
Through this meticulous analysis, the algorithm assigned a unique score to Ripple, indicating a 98% probability of a successful exit via IPO. It is worth noting that the algorithm does not provide a specific timeframe for the IPO; it focuses solely on probability assignments.
Jones further shared a quote highlighting that companies ranking in the highest percentile during 2018 had a significantly higher probability of successful exits compared to those in the lower percentile.
Read Also: Financial Expert Urges Investors to Consider XRP Value Rather Than Price. Here’s the Meaning
Implications and Ripple’s Regulatory Victory
The conversation surrounding Ripple’s potential IPO gained momentum following the firm’s recent regulatory victory. Experts have speculated that Ripple may consider going public within a year of this triumph. Earlier, Jones suggested that it would be opportune for Ripple to pursue an IPO when XRP prices are lower.
With a 98% chance assigned by the Pitchbook algorithm, Ripple’s prospects for an IPO have garnered attention within the industry. As discussions intensify in the wake of Ripple’s legal victory, market participants eagerly await further developments and the potential timing of Ripple’s public offering. The future trajectory of Ripple and its potential impact on the broader crypto market will be worth monitoring as the circumstances continue to unfold.
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