According to reports, Figma, the collaborative design software upstart that grew to $2B valuation in last year’s economic boom times, has officially gone public—at least on paper. This strategic move signals Figma’s intent to become a publicly traded entity, despite the current volatility in the stock market. The company is focused on building collaborative software and web apps made specifically for designers. It gives teams one shared space to move every creative project forward together.
Founded in 2012, Figma has garnered significant backing from several prominent venture capital firms, including Sequoia Capital, Index Ventures, Greylock, and Kleiner Perkins. Notably, investors from these firms sit on Figma’s board, highlighting their vested interest in the company’s future. Figma counts Andreessen Horowitz and IVP among its supporters, further solidifying its position in the competitive landscape of design software.
As of May 2023, Figma was worth an astonishing $12.5 billion. The valuation preceded the very successful tender offer. This provision allowed early investors to pay themselves back on part of their investments, a testament to robust investor confidence in the company’s growth path. The latest filing from Figma for an IPO was unexpected in today’s stock market climate. The market is riddled with fear and trepidation at the moment. Potential investors are understandably uneasy, due in large part to the Trump administration’s current trade policies and tariffs.
Figma’s IPO filing is the most significant step to date for the company. That’s not a guarantee that they’ll go after an IPO within the typical three-to-five-year period. Typically for an IPO, that timeline is four to six weeks after acceptance of confidential paperwork. Figma’s filing is listed as exploratory, meaning the company can change course based on market reception.
The filings describing Figma’s PATH are likely to be made public within a month or so barring any surprises. This timeline is the optimistic view on the transparency we should expect from the company in the coming months.
That’s partly why when Adobe tried to buy Figma for $20 billion in 2023, the agreement quickly broke apart under the weight of regulatory backlash. This makes this failed acquisition attempt all the more impressive—it speaks to Figma’s independence and ambition within all of tech.
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