There’s a good chance a blue-and-yellow can of WD-40 is sitting somewhere in the garage, under the kitchen sink or buried in a toolbox. Few people stop to think that the household staple was never supposed to fix squeaky hinges or loosen rusty bolts in the first place.

WD-40 Company (NASDAQ:WDFC) owes its existence to the Cold War—and a formula that almost didn’t happen.

The 40th Time Was the Charm

Back in 1953, three employees at the Rocket Chemical Company in San Diego were hired to solve a problem for the Atlas missile program. The aerospace industry needed a product that could prevent rust and push moisture away from the missile’s paper-thin outer shell.

It took 40 attempts to get the formula right.

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The breakthrough became known as WD-40, short for water displacement, 40th formula.

According to the San Diego Air & Space Museum, the product worked so well that employees began taking cans home in their lunchboxes after discovering it could solve countless everyday problems beyond aerospace. It loosened stuck bolts, stopped squeaks, protected tools from rust and cleaned grease from machinery.

Management quickly realized they had stumbled onto something much bigger than a government contract.

In 1958, the company packaged WD-40 in aerosol cans and began selling it to consumers. What started as a niche industrial product quietly became one of the most recognizable brands in American garages.

From Missile Labs to a Multibillion-Dollar Business

More than 70 years later, WD-40 is sold in more than 170 countries and has become a fixture in homes, workshops and factories around the world.

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The company itself has grown right alongside the brand.

Today, WD-40 Company carries a market capitalization of roughly $3.5 billion, with shares climbing after reporting stronger-than-expected quarterly results that included a 24% increase in revenue.

Not bad for a product that almost nobody outside the aerospace industry was ever supposed to see.

The Best Ideas Don’t Always Look Revolutionary

WD-40 followed a path that’s surprisingly common among breakout businesses.

It didn’t set out to become a consumer brand. It solved one problem exceptionally well, people found unexpected uses for it and word spread naturally.

History is filled with companies that looked ordinary before becoming household names. Amazon started as an online bookstore. Apple built personal computers. Nvidia spent years making graphics chips before becoming one of the biggest beneficiaries of the artificial intelligence boom.

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The next generation of companies is following a similar pattern. Instead of missiles or books, today’s entrepreneurs are tackling problems in artificial intelligence, advanced manufacturing, robotics and consumer technology. Many of those businesses are still private, giving everyday investors opportunities to discover companies long before they become familiar names through equity crowdfunding platforms.

The next generation of companies is following a similar path. Instead of solving problems with lubricants or online books, many are focused on artificial intelligence, spatial computing and productivity. Immersed, for example, began by helping remote workers create virtual workspaces in VR. Today, the company has expanded into hardware with its Visor headset and artificial intelligence, while building a community of more than 1.5 million users and raising tens of millions of dollars from investors ahead of a potential public offering.  

Nobody knows which young company will become the next WD-40, Amazon or Nvidia.

But if history has taught investors anything, it’s that today’s billion-dollar business often starts with a problem so ordinary that almost everyone else overlooks it.

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Mode Mobile

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EquityMultiple 

For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.

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