Buck Jordan here.

The happiest day for any angel investor or venture capitalist is the moment one of their portfolio company exits.

Whether it’s via an IPO, a merger, an acquisition, or anything else… an exit day is a good day.

Through my career, I’ve been lucky enough to strike gold on a number of investments, particularly through Wavemaker Partners, my venture capital fund.

At Wavemaker, we focus on finding companies that fit three characteristics:

  • They need to have a large potential market.
  • The business needs to be capital efficient.
  • And, most importantly, the founding team needs to be strong.

As I’ve said before, everything comes down to the entrepreneur. When we’re searching for companies to add to our portfolio, I want to see entrepreneurs brave enough to tackle the world’s biggest problems with out-of-the-box, yet efficient, solutions.

And in return, the fund helps them access capital, advice, resources, and contacts to add to their network and scale their business up.

Just this week, one of these portfolio companies announced that it’s ready to hit the public stage in an upcoming initial public offering.

The company is called FIGS. It’s the creator of a line of medical scrubs, alongside PPE products like face masks and shields. Their upcoming IPO could value the company at more than $3 billion, a massive jump from when we invested in 2014 at a $12M valuation.

FIGS was founded by two entrepreneurs, Heather Hasson and Trina Spear, in 2013. They wanted to create a line of scrubs that were both stylish and comfortable enough for healthcare workers to wear for long 12 to 16-hour shifts (or more).

Back then, it was hard to predict just how popular their product would become, especially during COVID 19. Last year, FIGS even reported $57.9 million in total profit and a 138% revenue jump compared to the year before.

What’s unique about this exit is that 1% of the company’s Class A shares will be reserved for Robinhood’s user base of retail investors. It’s the very first IPO listed on Robinhood.

Typically, these types of exit events aren’t accessible to everyday investors that aren’t swimming in cash… so it’s pretty special that these shares are available this time around.

FIGS isn’t the only exit we’ve seen, and I’ll highlight more of them in upcoming blog posts. For example…

  • In January, electric vehicle battery producer Romeo Power Inc. went public through a merger with RMG Acquisition Corp., a special purpose acquisition company (SPAC).
  • In 2017, Nestlé bought a majority stake in Blue Bottle, a coffee chain founded in Oakland, California.
  • And back in 2014, First Data acquired mobile gift card platform Gyft that launched in 2012.

What attracted us to each one of these startups were the same key factors: a capital efficient company, a large potential market, and a solid founding team prepared to do whatever it takes to scale their business.

In your own research, make sure you look for the same key factors. Not every angel investment you make will be a home run, no matter what factors you search for.

But, by following this formula, you’ll be much more likely to hit gold on a couple of smash-hit angel investments that will make each strike-out worth it.

That’s all from me for today, but don’t go anywhere too soon. I’ll be back shortly with even more tips and tricks on how to navigate the world of angel investing.

We’ll talk soon,

Buck Jordan