Figma’s IPO increased the company’s value
Figma’s IPO was one of the most successful in recent months. Going public brought the design software company US$1.2 billion. On the first day of trading, shares in the design software company rose in price by 250%. Consequently, the company’s value increased to US$65 billion.
According to Bloomberg, Figma was unable to fulfill all the applications received during the IPO process. Investor demand exceeded supply by 40 times. This made Figma’s first day of listing the largest for software developers in the last 30 years. IPO features:
– the placement price of the shares was US$33 per share;
– the closing price was fixed at over US$115 per share;
– market capitalisation amounted to US$56 billion;
– the total valuation, including shares and options, exceeded US$65 billion;
– the placement volume was approximately 37 million shares.
Morgan Stanley, Allen & Co., and Goldman Sachs acted as IPO advisers.
Figma’s final valuation was three times higher than the amount offered by Adobe. In 2023, the two companies were in talks about a potential acquisition. At that time, Adobe planned to acquire the developer for US$20 billion. However, the deal was not approved by antitrust authorities.
The IPO increased the fortune of the company’s founder and CEO, Dylan Field, to US$6 billion. He retains his status as the largest shareholder, owning Class B shares, which give him more than 74% of the votes. In addition, he has a ‘moon’ compensation package that provides bonuses. These are accrued when the average price of the shares rises above US$60. The maximum payment is provided when the US$130 mark is exceeded.
Financial results and market reaction
Prior to going public, Figma presented its financial forecasts for the upcoming period:
– revenue in the first quarter of 2025 amounted to US$228 million;
– profit for the specified period was US$45 million;
– the increase in expenses in 2024 resulted in a loss of US$732 million.
Experts praised the IPO results highly. They demonstrated investor interest in software developers. The listing also had a positive impact on activity in the US stock market. Since the beginning of 2025, the total value of IPOs has exceeded US$21 billion.
Company overview
Figma offers a design application with a collaborative project feature. The tool focuses on creating user interfaces in real time.
Dylan Field and Evan Wallace founded Figma in 2012 and began developing the platform. Initial investment in the project was provided by a Thiel Fellowship awarded to Field. The company raised US$3.8 million in 2013 and another US$14 million in 2015.
