Pre-IPO investment platform Linqto has highlighted trends to watch in 2024 for companies like Ripple looking to embark on an initial public offering (IPO) journey.
As the curtains rise on the 2024 IPO market, Linqto, a platform facilitating pre-IPO investments, has shared insights into the economic trends shaping the investment landscape.
In a recent post on X, Linqto highlighted that the IPO scene for the previous year had been largely quiet. However, it noted investors are gearing up for potential opportunities this year. To this end, it outlined key promising trends to monitor for the projected 2024 IPO market boom.
📈 Unfolding the 2024 IPO Market
The IPO scene in 2023 was relatively quiet, but 2024 holds different prospects. As you strategize for this year’s investments, here are some economic trends to monitor.
🚀 Encouraging Economic Indicators: We’re observing an upswing in GDP, a… pic.twitter.com/s6yAxltlLI
— Linqto (@linqtoinc) January 5, 2024
Encouraging Economic Indicators
According to Linqto, the economic outlook for 2024 appears promising, with positive indicators across various fronts. In particular, it highlighted an upswing in Gross Domestic Product (GDP), indicating an expanding economy.
Furthermore, the pre-IPO investment platform cited a reduction in unemployment rates. This suggests increased job stability and consumer confidence. Also, Linqto noted an uptick in consumer spending.
The platform believes these factors support a favorable environment for companies considering initial public offerings.
Easing Market Fluctuations
Furthermore, Linqto noted investors can take comfort in the decreasing levels of market volatility, as indicated by the Volatility Index. It argued that a more stable market creates an optimal climate for companies to contemplate IPOs as it provides a sense of security and confidence for potential investors.
Rising Capital Needs
According to data sourced from Pitchbook, there has been a noteworthy surge in the U.S. VC capital-to-demand ratio, standing at 2.76 times for late-stage startups.
Linqto believes this trend signifies a growing need for capital among startups, potentially driving an inclination towards IPOs as a strategic avenue for further expansion and development.
Ripple IPO Outlook
It is worth noting that the San Francisco-based crypto payment firm Ripple is among the leading crypto businesses with IPO plans. The Crypto Basic has repeatedly called attention to instances that suggested the company is laying the ground for an IPO.
As anticipation grows amid the projected 2024 IPO market boom, a financial analyst on Wall Street foresees the possibility of a Ripple IPO unfolding in May 2024 or, alternatively, in 2025.
Yet, other expert voices within the crypto community have cautioned against firm predictions on the timeline for this anticipated event. They cited Ripple’s legal issues with the U.S. regulator as an obstacle.