Figma opens up the “tech IPO window”

Figma priced its IPO on Wednesday at $33 per share, above its expected range, as reported by CNBC. This represents a significant premium over the most recent raised range of $30-32, and well above the initial $25-28 range announced just over a week ago.

The offering raised $1.2 billion, with most of the proceeds going to existing stockholders, as reported by CNBC. The company will begin trading on the NYSE under ticker “FIG” on Thursday, July 31, 2025.

The Journey to IPOFrom $20 Billion Acquisition to Independence

The Figma IPO story is inseparable from its failed acquisition by Adobe. In September 2022, Adobe agreed to acquire Figma for $20 billion in what would have been one of the largest software acquisitions in history. However, the deal was scrapped after regulators objected, Figma’s Dylan Field will cash out about $60M in IPO, with Index, Kleiner, Greylock, Sequoia all selling, too | TechCrunch as reported by CNBC, with UK regulators expressing particular antitrust concerns.

The collapse of the Adobe deal in December 2023 forced Figma back to independence and ultimately to the public markets. Ironically, this may have been beneficial for the company, allowing it to accelerate AI innovation and expand its product line without the constraints of a larger corporate parent.

Financial Performance: Hypergrowth Continues

Figma’s financial metrics paint a picture of a company in hypergrowth mode:

Q2 2025 (Preliminary):

Revenue for the quarter ended June rose to between $247 million and $250 million from $177.2 million a year earlier, representing growth of 40% at the middle of the range, as reported by CNBCThe company expects to swing from an operating loss to potential profitability

Q1 2025:

Revenue rose 46% to $228.2 million, and net income tripled to $44.9 million, as reported by CNBCAs of March 31, it had 13 million active monthly users, and 95% of Fortune 500 companies are customers, Figma IPO Countdown: The IPO Date is Near as reported by Kiplinger

Historical Context:

In 2023, Figma reported $737.8 million in net income on revenue of $504.9 million, as reported by The Motley Fool

These numbers suggest Figma is on track to exceed $1 billion in annual revenue for 2025, with maintained profitability despite heavy investments in AI and product development.

The IPO Structure: Unusual and StrategicSecondary-Heavy Offering

The company plans to offer about 12.5 million shares. Yet existing shareholders will be allowed to cash out of nearly 24.7 million shares, Figma raises IPO range to $30-$32 per share, in deal that could value company at nearly $19 billion as reported by TechCrunch. This 2:1 ratio of secondary to primary shares is highly unusual for a tech IPO and signals several things:

Strong Demand: The company wouldn’t structure this way unless they were confident of oversubscriptionLiquidity for Early Investors: After years of being locked up (especially post-Adobe deal collapse), investors need returnsLimited Dilution: Figma itself is raising relatively little capital, preserving existing ownershipAuction-Like Process

Figma is asking prospective investors in its initial public offering to precisely state the number of shares they wish to buy and at what price, Figma prices IPO at $33, above expected range as reported by Bloomberg. This auction-like approach is designed to maximize price discovery and extract maximum value from the strong demand.

Key Stakeholders Cashing Out

Dylan Field has disclosed that he plans to sell 2.35 million shares. At the midrange he’ll be cashing out of over $62 million, Figma raises IPO range to $30-$32 per share, in deal that could value company at nearly $19 billion as reported by TechCrunch. At the final $33 price, Field’s sale amounts to approximately $77.5 million.

Despite this sale, He will hold 74% of the voting rights after the IPO, Figma raises IPO range to $30-$32 per share, in deal that could value company at nearly $19 billion thanks to supervoting Class B shares, ensuring continued founder control.

Major VCs are also taking liquidity:

Figma’s biggest venture investors are all cashing out some shares, as well, including Index, Greylock, Kleiner Perkins, and Sequoia, Figma raises IPO range to $30-$32 per share, in deal that could value company at nearly $19 billion as reported by TechCrunchStrategic Positioning and AI FutureThe Collaborative Design Revolution

Figma has fundamentally transformed how design work is done, moving from siloed desktop applications to real-time collaborative web-based tools. Two-thirds of whom aren’t designers, as reported by The Motley Fool, showing how Figma has expanded beyond its initial designer audience to become a general collaboration platform.

AI Integration

Figma Make already lets users convert a conversational prompt into a working prototype in just minutes, as reported by The Motley Fool. The company sees massive opportunity ahead, projecting that there will be 1 billion new apps in the world by 2028, many of which will come to Figma for their branding and user interface, positioning itself as the design infrastructure for the AI app explosion.

Blockchain Innovation

In an unusual move for a traditional software company, Figma said it has authorized the issuance of “blockchain common stock” in the form of “blockchain-based tokens,” Figma’s Dylan Field will cash out about $60M in IPO, with Index, Kleiner, Greylock, Sequoia all selling, too | TechCrunch as reported by CNBC. While they haven’t announced specific plans, this positions Figma at the forefront of tokenized equity experimentation.

In July, Figma disclosed investments in a stablecoin and a Bitcoin exchange-traded fund, Figma’s Dylan Field will cash out about $60M in IPO, with Index, Kleiner, Greylock, Sequoia all selling, too | TechCrunch showing the company’s crypto-forward thinking.

Board Composition: Tech Luminaries

The board additions signal Figma’s ambitions:

Mike Krieger, a co-founder of Instagram who is now chief product officer of artificial intelligence model developer Anthropic, has joined the board, Figma’s Dylan Field will cash out about $60M in IPO, with Index, Kleiner, Greylock, Sequoia all selling, too | TechCrunch as reported by CNBCLuis von Ahn, co-founder and CEO of Duolingo, is also joining the board, Figma’s Dylan Field will cash out about $60M in IPO, with Index, Kleiner, Greylock, Sequoia all selling, too | TechCrunch bringing consumer product expertiseValuation Analysis

At $33 per share, Figma’s valuation lands at approximately $19.4 billion on a fully diluted basis. This represents:

97% of Adobe’s Offer: Nearly matching the $20 billion Adobe was willing to pay in 2022~19x Forward Revenue: Based on estimated 2025 revenue of ~$1 billionPremium to Last Private Round: In a 2024 tender offer, investors valued the company at $12.5 billion, Figma’s Dylan Field will cash out about $60M in IPO, with Index, Kleiner, Greylock, Sequoia all selling, too | TechCrunch meaning the IPO represents a 55% increaseComparative ValuationOther high-growth SaaS companies trade at 10-15x forward revenueAI-enabled platforms command premiums of 20-30xFigma’s 19x multiple suggests market confidence but not irrational exuberanceMarket Context

According to Renaissance Capital, there have been 120 IPOs priced this year through July 30, a 46% increase from the year prior, Figma IPO Countdown: The IPO Date is Near as reported by Kiplinger. However, Total proceeds from this year’s filings are down 21% year over year to $18.3 billion, Figma IPO Countdown: The IPO Date is Near suggesting more but smaller IPOs.

This year’s biggest IPOs include stablecoin issuer Circle Internet Group (CRCL) and CoreWeave (CRWV), an artificial intelligence (AI) cloud company, which raised $1.05 billion and $1.5 billion, respectively, Figma IPO Countdown: The IPO Date is Near making Figma’s $1.2 billion raise one of the year’s largest.

Investment ImplicationsStrengthsMarket Leadership: Dominant position in collaborative designFinancial Performance: 40%+ growth with profitabilityPlatform Expansion: Moving beyond designers to all software creationAI Integration: Well-positioned for the AI app boomCustomer Base: 95% of Fortune 500 companiesRisksValuation: Trading at premium multiplesCompetition: Adobe, Canva, and AI-native tools emergingMarket Conditions: Tech valuations remain volatileExecution Risk: Must maintain growth while investing in AIThe Bottom Line

Figma’s IPO represents a watershed moment for the design software industry. The company’s ability to price above its raised range in a challenging market demonstrates investor confidence in its collaborative platform and AI future.

The failed Adobe acquisition may prove to be a blessing in disguise, allowing Figma to remain independent and capture the full upside of the AI transformation in software development. With strong financials, dominant market position, and clear AI strategy, Figma appears well-positioned for public market success.

However, at nearly 20x forward revenue, the stock is priced for perfection. Investors should expect volatility as the market digests whether Figma can maintain its growth trajectory while fending off competition and executing on its AI ambitions.

The true test will come in the quarters ahead as Figma must prove it can sustain 40%+ growth, expand its AI capabilities, and justify its premium valuation as a public company. For now, the successful IPO pricing suggests the market believes in Figma’s vision of becoming the default platform for the next billion apps.

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