Form 4: Figure Tech Investors Convert Preferred Stock Pre-IPO

DCM International VIII and affiliated entities converted their preferred stock holdings in Figure Technology Solutions into Class A Common Stock ahead of the issuer's IPO.

Summary

• Various series of preferred stock (Series Seed, A, B, C, and D) in Figure Technology Solutions, Inc. were automatically converted into Class A Common Stock.
• This conversion occurred on September 12, 2025, immediately prior to the closing of Figure Technology Solutions, Inc.'s initial public offering (IPO).
• Figure Investments, LLC acquired 15,022,618 shares of Class A Common Stock through this conversion, resulting in a beneficial ownership of 16,456,952 shares.
• DCM Opportunity Fund III, L.P. acquired 183,763 shares of Class A Common Stock through this conversion, resulting in a beneficial ownership of 201,309 shares.
• Following these transactions, the reporting persons, including DCM International VIII, Ltd. and its affiliates, are now designated as 'Former 10% Owners' of Figure Technology Solutions, Inc.

Sentiment

Score: 7

Explanation: The filing reports a standard, positive procedural step (preferred stock conversion) in preparation for an IPO, which is generally a growth-oriented event for a company.

Positives

• The conversion of preferred stock into common stock simplifies Figure Technology Solutions, Inc.'s capital structure, which is a positive step for a company preparing for an Initial Public Offering (IPO).
• The completion of this conversion indicates progress towards the company's public listing, suggesting a move towards greater liquidity and market access.

Future Outlook

The conversion of preferred stock into Class A Common Stock occurred immediately prior to the closing of Figure Technology Solutions, Inc.'s initial public offering, indicating the company's transition to a publicly traded entity.

Industry Context

The conversion of preferred stock into common stock is a typical step for companies preparing for an Initial Public Offering (IPO), streamlining the capital structure and preparing for public trading. This aligns Figure Technology Solutions with common practices for companies entering public markets.

Comparison to Industry Standards

• This conversion aligns with standard pre-IPO procedures observed in numerous technology and financial services companies undergoing public listings.
• For example, companies like Snowflake Inc. and Palantir Technologies Inc. also undertook similar capital structure simplifications prior to their direct listings or IPOs, converting various classes of preferred shares into common stock to present a unified share class to public investors.

Related Party Transactions

• The filing details the indirect beneficial ownership structure of Figure Investments, LLC and DCM Opportunity Fund III, L.P. through various DCM entities, highlighting the interconnectedness of these investment vehicles.

Stakeholder Impact

• Shareholders: The conversion simplifies the capital structure, as all preferred shares convert to Class A Common Stock, potentially increasing liquidity for former preferred shareholders.
• Investors: The clearer ownership structure post-IPO provides transparency for new and existing investors.

Next Steps

• Closing of Figure Technology Solutions, Inc.'s initial public offering.

Key Dates

Keywords

Figure Technology Solutions, FIGR, SEC Form 4, beneficial ownership, preferred stock conversion, Class A Common Stock, IPO, DCM International VIII, Figure Investments