Figure Upcoming IPO: HELOC lender still eyeing IPO if market conditions improve
The slow drip of IPOs in 2024 created a backlog in the IPO pipeline, with no clear timeline as to if/when the floodgates will open. One of those companies caught in the queue is Figure Technology Solutions, the parent company of Figure Lending.4
While the blockchain-based HELOC lender and technology provider filed its S-1 with the SEC in March 2024,5 it has not moved forward with setting an IPO date. Until IPO conditions improve and more companies start going public, Figure might stay put.
As CEO Michael Tannenbaum told Axios in November 2024, "I think we're waiting for the animal spirits to come out. We're not necessarily going to be leading the charge for fintech."6
That said, Figure has made some progress since filing its S-1. For example, in September 2024, Figure hired Ronald Chillemi as chief legal officer and corporate secretary.7 In December 2024, Figure announced the hiring of CFO Macrina Kgil, citing her IPO experience.8
Figure: Company background
Figure was founded in 2018 by Mike Cagney, former co-founder of SoFi,9 and June Ou, who was previously CTO at SoFi.10
The company has gone through significant structural changes, namely with Figure's lending arm spinning off in 2024 into its own business, Figure Lending, under the parent company Figure Technology Solutions11 — not to be confused with Figure Technologies or the Figure Technologies subsidiary Figure Markets, which also spun out and has since raised money.12
The names can get a bit confusing, so potential investors should be sure to clarify what business they're looking at. In regards to the potential upcoming IPO, here we are referencing Figure Technology Solutions, which operates under the brand name Figure and has filed its S-1.13
Tapping into the home equity market
The run up in housing prices in recent years has not only been lucrative for home sellers but has also opened up opportunities for related sectors, like home equity lending.
As of the end of Q3 2024, U.S. mortgage holders hit a record of $11.2 trillion in tappable equity, according to Intercontinental Exchange.14 Yet there's only about $400 billion in originated second lien loan products, like home equity lines of credit (HELOCs), according to Figure.15
However, if interest rates remain relatively high, that could support more home equity lending. That's because some homeowners might not want to touch their first mortgage that they perhaps locked in at low rates during the pandemic, but rather than letting their accrued equity sit untouched, they might borrow against a portion of it. Indeed, Figure projects it will originate 40% more in HELOC financing in 2025 than the $5.5 billion it did in 2024.16
But it's not just macro trends at play. Part of what has fueled Figure's growth in this space has been the company's use of technology, including blockchain17 and AI,18 which the company says makes its HELOCs more cost-effective and efficient.19 And Figure operates across multiple stakeholders, such as by working directly with borrowers as well as white-labeling its HELOC for partners like banks and other lenders.20
However, Figure has faced some challenges over the years, particularly in terms of the overall corporate structure/ownership. For example, in 2022 it planned to go public via a SPAC and acquire a mortgage bank, but that ended up falling through.21 Earlier that year, a planned merger between Figure and Homebridge Financial Services also got cancelled.22
Now, with Figure separating some business units and the lending company standing on its own and assuming the Figure brand name, it looks to find a path forward toward a potential IPO.
Figure stock price history
Figure's Forge Price™ is $5.34 as of end of March, which is about a 6% decrease over the past year, and a significant tumble from its share price of $17.69 as of its last primary funding round in 2021.23
Forge Price is a derived data point that reflects the up-to-date price performance of venture-backed, late-stage companies, and is calculated based on a proprietary model incorporating pricing inputs from primary funding round information, secondary market transactions, and indications of interest (IOIs) on Forge.
In comparison, the Forge Private Market Index — a broad measurement that reflects the up-to-date performance and pricing activity of venture-backed, late-stage companies that are actively traded in the private market — is up nearly 17% over the past year.24
That said, some of Figure's pricing changes potentially reflect changes to the corporate structure, such as with its recent spinoffs.
Figure funding history and private market valuation
Figure's funding history and private market valuation is a bit complicated given the spinoffs. Since Figure Lending rebranded under Figure Technology Solutions, there have not been any new primary funding rounds. Prior to the spinoffs, the parent brand Figure Technologies, Inc. had its last primary funding round in 2021, when its Series D raised $200 million at a $3.2 billion valuation, with investors such as Apollo Global Management and Blockchain.com joining in.25
Prior to that, the company became a unicorn at the end of 2019, when it raised over $100 million for its Series C at a $1.2 billion valuation, in a round led by Morgan Creek Digital.26 That marked a jump from a $380 million valuation from its Series B in early 2019.27 Figure's first funding rounds included a Seed Round in early 2018 valuing the company at $100 million, and the Figure Series A later that year valued it at $150 million.28
Looking ahead
While Figure has not set an IPO date since filing its S-1 last year, it still seems to be on track to go public if market conditions improve. Check back here or take a look at Forge’s upcoming IPO calendar to stay in the loop about a possible Figure IPO and other pending public offerings. If you’re interested in investing in private companies like Figure before they go public, read more about pre-IPO investing or register on Forge Markets today to get started.
FAQs about the Figure upcoming IPO
What is Figure?
Figure is a fintech company specializing in HELOC offerings both directly to consumers and via partners such as banks.
Is Figure going public?
Figure filed its S-1 to go public in 2024 but has not moved forward with definitive IPO plans. However, a potential IPO still seems to be on the table if IPO conditions improve
Who are Figure's key investors?
Figure has brought in a wide range of key investors over the years, such as 10t Holdings, Alpha Square Group, Apollo Global Management, Baseline Ventures, and Blockchange Ventures.
Can anyone invest in Figure?
At this time, Figure remains remains a private company. Thus, investment is usually limited to accredited investors who are either invited to participate in primary funding rounds or those who can access pre-IPO shares of Figure on a secondary marketplace such as Forge, subject to availability.
