Pitchbook Algorithm Predicts Ripple Has 98% Chance of Going Public

In a recent tweet, Wall Street veteran Linda Jones highlighted the probability of Ripple going public with an Initial Public Offering (IPO).

Jones quoted data from Pitchbook, a prominent venture capital and private equity resource. She noted that Pitchbook developed an algorithm that examines data from 64,000 past successful exits of private companies. 

Specifically, the algorithm captured data for private firms exiting by IPO or merger and acquisition (M&A) over the past five years. The resulting conclusion in the case of Ripple was that Ripple has a 98% chance of an IPO.

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

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How The 98% Came About

Notably, the Wall Street expert underlined the comprehensive evaluation of diverse data points that the Pitchbook software studied before concluding. 

The algorithm analyzes the frequency and magnitude of fundraising rounds, the number of patents held, and the extent of acquisitions undertaken. 

Also, it takes account of workforce size, the market’s total addressable scope, revenue expansion, involvement of active investors, and the overall financial maturation of the respective companies.

After the in-depth analyses, Jones stated that the algorithm assigns a unique score to each company. The score represents a probability rating denoting the likelihood of a triumphant IPO or M&A endeavor. 

For the blockchain payment firm, the algorithm assigned a 98% Exit Success Probability via IPO.

Meanwhile, Jones clarified that the Pitchbook’s AI-powered machine predicts no time frame for a company to IPO. It only assigns a probability score for the chances of going public. 

Moreover, Jones shared a quote that companies that occupied the highest percentile in the rankings during 2018 exhibited a 3.8 times higher probability of successful exits compared to their counterparts in the lower 90% of the ranking.

Ripple IPO

Notably, the discussion surrounding Ripple going public intensified after the firm’s recent regulatory victory. As The Crypto Basic reported in June, the Wall Street expert argued that it is best for Ripple to do its IPO when XRP sells low.

Furthermore, pundits have expressed that the crypto community can expect a Ripple IPO within a year of regulatory triumph.