Figure operates as a leading AI-integrated robotics manufacturer. The company specializes in humanoid robots designed to work alongside human counterparts. The firm is one of the most recognizable names in the market due to its revolutionary products and unique business model, which seeks to make human-form robots practical for everyday usage.
These factors have led to strong demand for Figure stock. However, the company remains privately owned, meaning the only way to obtain these assets is via pre-IPO channels. Here’s what you need to know.
What is Figure?
Figure entered the market in 2022. It’s based in Sunnyvale, California, and was founded by Brett Adcock to drive the adoption of general-purpose robotics. Since its launch, the manufacturer has seen considerable growth and support from investors. Today, it holds a valuable position in the $71B robotics market. Notably, analysts predict this sector will expand to $150.84 billion by 2030, positioning Figure for massive growth.
Figure differs from many competitors in that it has an AI-first approach. The company invested heavily in cutting-edge AI algorithms that enable its robots to learn and act autonomously. Figure expands past the single-task setup of their predecessors. These devices are capable of perception, object recognition, and situational awareness, allowing them to adapt to new tasks in real time.
The robotics industry will disrupt multiple industries, providing higher efficiency and capabilities in both the home and industrial settings. Figure focuses on addressing the future labor shortages and enabling the average person or business to leverage advanced AI-powered devices to improve their bottom line. The company’s robots can assist in everything from doing the dishes to completing complex manufacturing, logistics, warehousing, and retail-related tasks.
Advanced Products
There are three models of robots that Figure offers. The early Figure 1 prototype demonstrated how advanced sensory and perceptual systems could fit into a humanoid robotic form. The Figure 2 robot took the concept further with direct core API integration. This device became the first commercially viable humanoid robot to hit the market. It stood 5’6″, had a 5-hour runtime, and was fully electric.
This year, Figure will unveil its Figure 3 prototype. This robot features enhanced frames and joints, enabling more movements. The device integrates the latest AI models and can conduct intricate interactions with humans without prior training. Given that there were already +4M robots in factories in 2024, this latest upgrade could provide a boost to Figure’s market positioning.
Historical Funding Rounds
Summary of Figure Funding:
- Total Funding: Figure secured $754M across 3 funding rounds.
- Largest Round: Figure’s largest funding round secured $675M on February 23, 2024.
- Investors: A total of 25 institutional investors and 1 Angel investor back Figure
- Latest Round: The latest funding round raised $675M via a Series B round held on February 23, 2024.
Funding Rounds Breakdown:
Key Investors:
Figure secured financial support from Microsoft, NVIDIA, Parkway VC, Intel Capital, Align Ventures, ARK Investment Management, Amazon Industrial Innovation Fund, OpenAI Startup Fund, Bezos Expeditions, LG Innotek, Samsung Venture Investment, Aliya, Tamarack Global, Boscolo Intervest, Bold Capital Partners, Tamarack Global, FJ Labs, Aliya Capital, and Till Reuter.
Funding and Investor data sourced from Tracxn
Why Invest in Figure?
There are several reasons why investors continue to seek out Figure shares. For one, the firm ranks 5th globally in the robotics market. This strong positioning will enable the firm to enjoy additional growth alongside the market as it expands to $84b by 2034, according to Statista reports.
Autonomy is Key
One of the main reasons why Figure continues to climb the charts against better-funded competitors like Softbank Robotics, Agility Robotics, and Apptronik is its advanced AI integration. Its systems are capable of completing end-to-end operations safely and autonomously. They can be taught on the spot by humans and require no additional programming.
First Mover
Figure is a first mover in the humanoid robotics sector. While multiple firms have worked to produce these devices, none have become commercially viable to date.
Source – Figure.ai
Figure has achieved a market-ready device and utilizes a multi-channel distribution strategy that will enable it to get products to both the commercial and consumer markets. As such, you can expect to see Figure leading the charge in robot-powered industrial automation, education, home assistance, healthcare, and more.
Compatibility with Human Work Stations
The team didn’t decide to utilize a human form because it looked cool. They chose this form factor because it provided the highest compatibility in the workspace. Figure can navigate human environments and utilize the same tools to complete the tasks that may be too dangerous or just too repetitive for the average worker to enjoy.
Employee Morale and Safety
The ability to utilize robots to conduct morally draining work is a big plus for manufacturers. Automating repetitive or physically demanding tasks improves employee attitudes and reduces the risk of safety violations or injuries. When workers understand that they have a reliable and safe robotic companion, it boosts their desire to accomplish their tasks efficiently.
Compliance Ready Robots
Compliance was a major concern for Figure. The company has invested heavily in their device to ensure that they can meet the strict regulatory standards set out to work alongside humans. The firm’s focus on compliance will enable it to venture into more industries such as healthcare, where robotics is set to play a vital role.
How to Buy Figure Pre-IPO Shares
Figure remains a privately held company, meaning that you will need to utilize a specialized approach to get access to shares. Here is what you need to consider.
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 Figure 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 Figure. 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 Figure and Future IPO
Figure is one of the most sought-after stocks in the robotics market. It received a valuation of $2.6B on Mar 01, 2024. This valuation qualifies the company for Unicorn status. It was able to obtain this valuation due to a combination of factors, including its commitment to innovation and expanding robotic applications globally.
There is a growing number of analysts that predicted Figure will decide to go public in the coming year. The firm has strong support from investors and its newest product, the Figure 3 robot, opens the door for large scale integration across multiple industries.
Figure hasn’t shared plans to go public. However, if the company were to announce an IPO date, it would be met with strong support from both institutional and public investors seeking to gain exposure to the growing AI robotics field. Consequently, investors who can obtain these shares can expect growth in the coming years.
Investing in Figure Pre-IPO Shares: Conclusion
Investing in Figure Pre-IPO shares can open the door for future profits. The robotics market is in a sprint to provide the market with more commercially viable solutions. If Figure can accomplish this task, there will be huge rewards for those lucky enough to have exposure to the company’s shares.
It should be noted that there are risks involved with investing in pre-IPO shares of any company. For one, there is no guarantee that a company will operate in the same manner or will experience an increase in stock value when it goes public. As such, you should consult a financial professional to ensure that you remain within your risk appetite. For those who accomplish this task and find Figure to be a good fit, there remains a lot of future upside potential.
Learn about Other Pre-IPO Opportunities Now
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.