🤑 29 February 2024: Figure AI⚡

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LIGHTNING DEALS⚡

Figure AI

We’re incredibly excited to launch this opportunity to join Figure AI’s oversubscribed $675M Series B, alongside Microsoft, OpenAI, Nvidia, Samsung, Jeff Bezos and more.
As this deal is highly oversubscribed and time-sensitive (soft commitments must be sent by March 1st), it will be on a best-efforts basis to secure allocation for our subscribers.

Blurb: Figure AI is building autonomous humanoid robots - it's the largest market opportunity we've ever seen, disrupting the $42 trillion/year labour market.

Last year, ChatGPT took the world by storm propelling OpenAI’s valuation to $86B. We believe the next significant frontier in AI is bringing it into the physical world.
Today, manual labour compensation accounts for ~50% of the global GDP (~$42 trillion/yr). As Figure’s robots “join the workforce,” everywhere from factories to farmland to your home, the cost of labour should decrease until it becomes comparable to the rental price of a robot. Figure has already secured contracts with BMW and another major company with one of the highest market caps globally.
With a strong team, strategic partnerships, and ample funding, Figure is well-positioned to seize this opportunity and transform into a multi-hundred billion dollar company, 100x+ from their current valuation (~$2B).

Highlights:

  1. Major recent AI breakthrough: the company’s Figure 01 robot demonstrated a significant breakthrough in AI training methods by learning to perform a task by watching humans. The ability to learn and execute tasks in this way opens up a profound range of use cases. Figure already has contracts with BMW and with one of the top companies by market cap [undisclosed/confidential].

  • Unparalleled market size: physical labour is a $42 trillion/year market; whilst there are 2.3 billion households worldwide and 700M ageing population in need of at-home care. In the immediate term, there are 10M unfilled jobs in the US and suppliers predict they will run out of people to hire in warehouses this year.

  • Building a powerful flywheel: funding and partnerships are critical in this field to build a flywheel - the more robots Figure can produce (hardware), the more data the company gets (software) the better each robot in the network becomes, and so on. Figure’s backers now include the biggest names in both AI software and hardware. 

  • 100x return potential: given Figure’s technical progress, strong backing and the broader interest in AI, we expect considerable markups in valuation in the short term. In the longer term, Figure is one of the few companies that has a pathway to being a multi-hundred billion dollar company, 100x+ from its current valuation.

  • Stellar co-investors: new investors include Microsoft, Nvidia, OpenAI, Samsung, Amazon (via an affiliated fund) and Amazon founder Jeff Bezos. Bezos in particular has a strong record at this stage (Airbnb, Uber) and is investing a significant $100M.

Deal Stage: Series B
Minimum Ticket: $10.000
Fees: 10% fee + 20% carry (fees are higher than usual as you would be investing into a fund on the cap table - at The VC Insider we never charge fees)
Co-Investors: Microsoft, OpenAI, Nvidia, Samsung, Jeff Bezos
Deadlines: commitments by March 1st - close and wires by Monday 4th

This will be considered a soft commitment. Upon submission, your details will be forwarded to the fund managers overseeing the deal. They will then provide you with the deal memo, deal sheet, and all necessary information for you to thoroughly research this investment opportunity. Once you are satisfied, you can submit your hard commitment directly to the fund managers, who will then secure your participation in the deal.