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HomeCrypto NewsMarketPitchbook Algorithm Predicts Ripple Has 98% Chance of Going Public

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).

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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.

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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. 

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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. 

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a blockchain writer with a specific interest in journalistic writing. He covers breaking events in the crypto community and blockchain industry. Over the past year, he has published over 1,500 short-form and long-form content for Web3 publishing firms.

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