How To Invest in the ThoughtSpot IPO: A Beginner’s Guide

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ThoughtSpot offers cloud-based solutions to finding and analyzing data in an accurate, rapid, user-friendly manner. Launching its first cloud solution 2019, ThoughtSpot boasts granular data, real-time reporting, and on-the-go insights via its app. ThoughtSpot offers:
- Productivity apps
- SaaS apps
- Data science
- ThoughtSpot app
- Custom IT apps
- Cloud data
All of this technology can give companies a competitive edge in terms of speed and efficiency.
Due to its innovative technology and its AI-based systems, Wall Street and individual investors alike have been clamoring for an IPO. However, ThoughtSpot still remains a private company. While there are frequent rumors about a ThoughtSpot IPO, as of this writing, there’s still nothing on the books.
Here’s a look at why ThoughtSpot is in such demand, what its private valuation is and how an eventual IPO might look for the company.
What Is ThoughtSpot?
Here’s a closer look at ThoughtSpot.
Company Overview
ThoughtSpot specializes in AI-driven analytics and business intelligence software. It’s known for innovative, user-friendly tools for data insights and visualization. Via AI, ThoughtSpot turns text queries into data searches, providing data tables and charts as well.
Industry and Market Position
To fully understand a business, it’s important to understand the competition. As a cloud solution, ThoughtSpot competes with other cloud solutions, like Tableau, which Salesforce paid $14.6 billion in 2020.
ThoughtSpot sets itself apart from competition like Tableau by eliminating the need for structured query language, or SQL, for results. Instead, ThoughtSpot uses artificial intelligence to interpret user responses and provide answers.
PowerBI is another prominent competitor for ThoughtSpot, and it was developed by industry heavyweight Microsoft. Not surprisingly, therefore, Power BI offers excellent integration with programs like Azure and Excel. However, the company’s advanced features can get quite complex for the average user, often requiring interaction with IT teams vs. the user-friendly, AI-based approach used by ThoughtSpot.
Financial Performance
As a private company, ThoughtSpot doesn’t publish its financials every quarter like public companies do. However, according to Pitchbook, ThoughtSpot has raised approximately $801.4 million in private financing, which gives it its valuation of approximately $4.4 billion.
Key Details About the ThoughtSpot IPO
The ThoughtSpot IPO has been a hot topic on Wall Street for years. But are there any specifics yet?
IPO Date and Pricing
Unfortunately, there is still no estimated timeline for the ThoughtSpot IPO. The company’s plans for an IPO are a bit more muddled in early 2025, as ThoughtSpot named a new CEO just in September 2024, Ketan Karkhanis. This change was made after the company’s CEO for the prior six years, Sudheesh Nair, left the company in March 2024.
Underwriters and Stock Exchange
As no IPO date has yet been set, there are no banks or underwriters yet lined up for ThoughtSpot’s public debut. The speculation is that if and when ThoughtSpot does IPO, it will trade on the NASDAQ exchange along with its big tech brethren.
Expected Valuation
ThoughtSpot’s most recent valuation was $4.4 billion, suggesting it would begin trading at about those levels. However, with an unknown IPO date, this valuation could change radically by the time the company finally goes public.
How To Invest in ThoughtSpot Stock
Here’s what you should know when the time is right for investing in Thoughtspot.
Before the IPO
Before any company goes public, including ThoughtSpot, there are a few, limited ways that you can acquire shares.
Accredited Investor
One of these ways is to be an accredited investor. This requires a net worth of at least $1 million, excluding your primary residence, and an annual income in excess of $200,000, or $300,000 for a couple. You must also be a qualifying financial professional.
Private Equity Platform
As the accredited investor option is not available to most people, you might have to use a private equity platform like Hive. This is an open marketplace where venture capitalists, employees, angel investors or other insiders with actual ThoughtSpot shares can unload them in the secondary market.
Bear in mind that in this type of market, shares are often thinly traded and illiquid, and you may see prices that have little to do with what a company’s true valuation should be. For example, if someone wants to unload ThoughtSpot shares for $100 each, it’s hard to know if that’s a fair price or if it is just the price a seller is looking to get. In other words, you should tread lightly if you plan on using a pre-IPO platform.
During the IPO
When ThoughtSpot goes public, you may be able to access shares directly from your broker, whether you use a traditional firm or an online one. However, as this particular IPO is likely to be in very high demand, it may be difficult to actually obtain shares. Sometimes, having a long-standing relationship with a firm that participates in the underwriting of the IPO can give you a better chance at snagging shares.
After the IPO
After the ThoughtSpot IPO, you can buy shares on the open market just like with any other stock, as it will be a publicly traded entity at that point. However, you may have to pay significantly more than the IPO price, especially on the first day of trading.
Pros and Cons of Investing in ThoughtSpot
Every investment has both pros and cons — that’s why there’s a market, so that buyers and sellers can fight it out and reach a fair valuation for a stock through the process known as “price discovery.” Here are the potential advantages and possible risks of investing in ThoughtSpot.
Potential Advantages
- Exposure to the growing business analytics market
- Innovative AI-driven technology with high customer demand
- Strong institutional investor support
- Proven success with its initial product lines
Possible Risks
- Market competition from established players
- Challenges in achieving and maintaining profitability
- Overvaluation at time of IPO
Should You Invest in ThoughtSpot?
You should never invest in a company just because there’s hype around it. Be sure to understand what you’re getting into before you pick up shares of ThoughtSpot.
Consider Your Risk Tolerance
When a high-growth company like ThoughtSpot goes public, there’s often so much hype surrounding it that the stock surges in its first moments of trading. However, volatility is a two-way street.
After the initial surge, high-flying growth stocks often flounder. In May 2019, for example, nothing was hotter than the IPO of Beyond Meat, which surged 163% on its first day of trading and continued to rally in the following months. By October 2023, however, a little more than four years later, the stock was down 97% from its all-time high, according to the Food Institute.
This isn’t to say that this will be the case with ThoughtSpot, but rather to emphasize the volatility that hot IPOs can often exhibit.
Food for Thought
While it’s easy to sit behind a computer and say that you would have cashed out of Beyond Meat when it reached its peak, when a stock is rallying hard, it’s emotionally difficult to actually get out. Realistically speaking, investors tend to buy more when stocks are high and sell when they are down, rather than the opposite. This is a common tendency you should be aware of if you buy into the ThoughtSpot IPO.
Assess the Long-Term Potential
Even if the ThoughtSpot IPO seems destined to pop when it begins trading, you should only buy it if it aligns with your investment goals.
If You’re Risk-Averse
While everyone wants to make money, if you’re a conservative, risk-averse investor who lives off a monthly check from Treasury bonds, owning shares of a high-flying tech company that’s just going public isn’t a good fit. While ThoughtSpot’s IPO is highly anticipated, there are no guarantees regarding its share price. Even if it initially takes off, there’s no knowing if or when institutional investors will dump their shares and drive the stock price down.
A High Price
The ThoughtSpot IPO may also be too richly priced due to the demand, leaving little room for price appreciation once shares actually begin trading. In other words, you should only pick up shares of the if you’re an aggressive, capital appreciation-oriented investor.
Katy Hebebrand contributed to the reporting for this article.
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- Pitchbook. "ThoughtSpot Announces Record 108% YoY Revenue Growth Driven by Booming Demand for AI-driven Analytics."
- Business Intelligence. 2025. "10 Power BI alternatives for data-driven insights."
- The Food Institute. 2023. "Analysis: Beyond Meat Bit Off More Than it Can Chew."