Locus Robotics is a leading provider of automated robotic solutions and software systems. Its innovative autonomous mobile robots (AMRs) have revolutionized the supply chain and logistics sectors, driving productivity and efficiency without sacrificing safety. Today, you can find Locus Robotics units working collaboratively with humans in warehouses operated by DHL, Booktopia, Berkshire Grey, United Drug Partners, and many more.
Locus Robotics’s innovative products and unique business model continue to drive investor interest. However, the firm is privately owned, meaning that you need to navigate the secondary market to acquire access to these assets. Here are a few ways for you to secure Pre-IPO shares of Locus Robotics.
What is Locus Robotics?
Locus Robotics was founded in 2014 after Amazon acquired Kiva Systems from Quiet Logistics. Bruce Welty and Mike Johnson founded the company with the goal of providing state-of-the-art robotics and software to manufacturers. Today, it’s one of the most recognizable names in the market and recently unveiled a new state-of-the-art, 157,000 square foot Locus Park facility.
Warehouse Automation
Locus Robotics released its first product, Locus Origin, in 2015. This device revolutionized the market as it was one of the first AMRs that was capable of finding, verifying, and picking items during the fulfillment process. After extensive testing in-house and with other Quiet Logistics clients, the devices were sent to the DHL East Coast distribution center, where they outperformed expectations.
Source – Locus Robotics
The Locus Vector release provided the robots with some added features and capabilities. These advanced robots featured 360-degree turning wheels, which enhanced movability in tight spaces. Additionally, they could carry 600 lbs and transport it autonomously around a designated warehouse, adding to their value.
Artificial Intelligence Integration
The integration of AI features was a game-changer for Locus Robotics. These systems allowed the units to make informed decisions in real time. They also enabled robust fleet management options. These intelligent devices process and share information in real time and gain collective knowledge from their experiences.
In 2020, the COVID pandemic placed an enormous amount of demand on the delivery and e-commerce sectors. This demand translated to more demand for automated solutions. Locus Robotics filled this niche and has hit significant milestones since then, including 500M picks with DHL.
Historical Funding Rounds
Summary of Locus Robotics Funding:
Total Funding: Locus Robotics secured $438M across 8 funding rounds
Largest Round: Locus Robotics’ largest funding round secured $151M on February 17, 2021.
Investors: A total of 17 institutional investors back Locus Robotics
Latest Round: The latest funding round raised $117M and was a Series F round held on November 28, 2022.
Funding Rounds Breakdown:
- 1 Seed
- 2 Early-Stage
- 5 Late-Stage
Key Investors:
Locus Robotics has secured funding from Stack Capital Group, G2VP, Goldman Sachs Investment Partners, Bond Capital, Scale Venture Partners, Hercules Capital, SVB, GCCP, Newton Investment Management, HESTA, Stafford Capital Partners Tiger Global Management, Bond Capital, Scale Venture Partners, Prologis, and Zebra.
Why Invest in Locus Robotics?
There are many reasons why investing in Locus Robotics could make sense for you. For one, the company streamlined the deployment and integration of automated robots into the logistics sector. Locus Robotics proved that it can improve customer satisfaction and optimize warehouse operations. Additionally, its warehouse management software and AI options reduce the workload on humans.
Locus Robotics has Competitive Positioning
Locus Robotics is recognized as a global leader in the logistics and robotics industries. The company currently ranks 6th amongst 733 active competitors. Additionally, it has received numerous accolades for its game-changing contributions to the automated robotics industry.
Cost-Effective Alternative
Automated robots provide a more flexible and cost-effective alternative to traditional conveyor belts and human retrieval options. These devices support real-time workflow optimization and leverage a modular approach, enabling clients to scale operations as needed.
Funding and Investor data sourced from Tracxn
1. Pre-IPO Secondary Marketplace
Secondary markets are purpose-built exchanges that connect pre-IPO shareholders with potential investors. These marketplaces can offer these assets because they work closely with employees, early-stage investors, and venture capitalists, who are crucial to the company’s pre-IPO growth.
Investing in pre-IPO shares of Locus Robotics could offer strong returns if the company’s valuation increases following its IPO. It’s common for company valuations to increase following an IPO. As such, it makes sense to add pre-IPO shares to your portfolio before the firm announces plans to go public.
Secondary marketplaces have many requirements. Here are some concerns you should be made aware of:
Eligibility: This approach requires you to be an accredited investor, meaning you will have to show at least $1M in liquid assets to qualify for access.
2. Private Equity Firms
Private equity firms gain access to pre-IPO shares during investment rounds. They then offer these shares to high-net-worth accredited investors with a commission. Notably, private equity firms are known to have extra stipulations, including blocking the sale of shares for years in some cases.
3. Employee Equity Sales
Many consider employee equity sales as the best way to acquire pre-IPO shares in Locus Robotics. This method of acquiring pre-IPO shares requires you to connect with former employees. It’s common for companies to issue shares as part of an incentive package. Notably, this profit-sharing method has become more popular, leading to more pre-IPO share opportunities for investors.
Private Transactions: There are a lot of hoops you will need to jump through to complete a private pre-IPO transaction, including creating specific legal agreements, conducting valuations, and setting in place any limitations on the transfer of the asset.
Brokerage: Brokers will take a lot of the confusion out of the pre-IPO process. These professionals can guide you through each step, ensuring full compliance and avoiding common errors untrained professionals make.
There are several risks that you should consider before jumping into the pre-IPO shares investment arena. Here are the top concerns:
Liquidity Risk
If you are looking for an asset that you can sell right away, pre-IPO shares are not the best option.
These investments can include sales and transfer clauses that prevent the transfer of the asset until certain criteria, such as the IPO’s completion, are met. It’s even common for pre-IPO shares to require you to wait years before gaining the ability to sell your assets.
Finding a Broker
If you meet the requirements and are comfortable with the risks, several platforms offer access to pre-IPO opportunities:
Forge Global: One of the largest private stock marketplaces, offering shares in late-stage startups like SpaceX, Stripe, and Databricks. Minimums typically start around $100,000.
EquityZen: A popular platform allowing accredited investors to buy into private companies with minimums as low as $5,000. Past offerings include companies like Discord and UiPath.
Rainmaker Securities: A full-service broker that helps source and negotiate private share sales, including opportunities in companies like OpenAI, Stripe, and Palantir.
Hiive: A newer platform with live bid/ask pricing for hundreds of private companies. Transparent and low-fee, with minimums starting around $25,000.
MicroVentures: Offers pooled access to late-stage companies through special purpose vehicles (SPVs), including past investments in SpaceX and Instacart.
EquityBee: Allows investors to fund employee stock option exercises at startups, often at discounted valuations, with minimums around $10,000.
Augment: A digital-first marketplace showing real-time pricing for pre-IPO shares, targeting tech-savvy investors and offering lower transaction fees.
StartEngine Private: Launched in late 2023, this platform offers accredited investors access to Regulation D offerings in later-stage, venture-backed companies. In its first nine months, it generated $16.5 million in revenue, with average investments around $32,000
Important: Always perform thorough due diligence and consult a financial advisor before investing in private company shares.
Valuation of Locus Robotics and Future IPO
Locus Robotics’s valuation is $2B, qualifying it for Unicorn status. The company secured this value with less than 400 employees, suggesting that there is more value to be gained if operations continue as planned. Currently, it has major clients in North America, Europe, and Asia, adding to demand for its shares.
Despite the company not publicly sharing any plans, a growing number of analysts think Locus Robotics will decide to go public in the future. The firm has strong institutional and private sector support. Additionally, its products continue to enhance performance and drive innovation. All of these factors are good signs that an IPO could succeed.
Final Thoughts on Investing in Locus Robotics
Investing in Locus Robotics pre-IPO shares positions you for any future gains and losses. Consequently, there are several concerns that you need to consider prior to making any pre-IPO decision. For one, it’s recommended that you consult a financial expert to ensure that the asset remains within your acceptable risk appetite.
For those who complete their due diligence and find that Locus Robotics is a good fit, there could be some significant growth in the coming years as more people turn towards robotics for effective solutions and the company’s ARMs become industry standard.
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Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Pre-IPO shares are typically available only to accredited investors and carry significant risk. Always perform thorough due diligence and consult a financial advisor or legal expert before making investment decisions.