IPO Watch – Figs Inc. (FIGS)

Founded in 2013 by Heather Hasson and Trina Spear, Figs is a direct-to-consumer healthcare apparel and lifestyle brand. Co-CEO Heather Hasson, in her investor letter, talks about her experience going into a “scrubs” store to find out and realize that not only were the product offerings depressing, but the experience was even worse.

“Right then, it was clear to me that both the design and distribution of scrubs were antiquated and ripe for disruption, and that healthcare professionals deserved innovative, functional products and an efficient distribution model built around their particular needs.”

Industry Overview

According to the Bureau of Labor Statistics, the healthcare sector is the largest and fastest growing job segment in the United States, employing over 20 million professionals in 2020. Total U.S. employment between 2019 and 2029 is expected to grow by 15% for all healthcare professionals versus just 4% for all occupations. In 2020, the total addressable market of the healthcare apparel industry was an estimated $12B in the United States and $79B globally, according to an April 2021 Frost & Sullivan study. Unlike most other categories in the apparel sector, the healthcare apparel industry is largely non-discretionary, recession resistant and much less susceptible to fashion or fad risk. Hospitals, medical offices, clinics and laboratories routinely require healthcare professionals to wear scrubs, lab coats and othe