Figma, a prominent design software company, has discreetly filed for an initial public offering over a year after Adobe’s $20 billion acquisition attempt was abandoned due to antitrust issues.
This filing indicates some confidence in public market debuts despite the ongoing market instability prompted by former President Trump’s tariff policies. These developments have unsettled investors and cast doubt on the immediate prospects for numerous IPOs.
On Tuesday, Figma revealed that it had submitted a draft of its IPO filing to the Securities and Exchange Commission, though it did not make the complete document public, which would typically disclose financial information about the company.
The valuation Figma aims to achieve in the public market will be closely monitored. In 2021, during a venture capital surge fueled by low interest rates, Figma’s valuation in its Series E funding round was $10 billion. By 2024, a tender offer valued the company at $12.5 billion.
Figma’s venture capital supporters include Kleiner Perkins, Sequoia Capital, Greylock, Index Ventures, Founders Fund, among others.
The company employs approximately 1,600 people and serves millions of customers, including major names like Airbnb, Google, Microsoft, Netflix, Salesforce, Spotify, Square, Stripe, and Zoom. Additionally, Figma has a global reach, with 85% of its users located outside the United States.
In May 2024, Figma disclosed some financial information, revealing to CNBC that the company had $600 million in annual recurring revenue. This measure is crucial for many companies as it indicates stable revenue typically associated with long-term contracts and subscription models.
Founded in 2012 by Dylan Field and Evan Wallace, Figma has notably been in the spotlight due to high expectations surrounding its IPO filing and the developments following Adobe’s unsuccessful acquisition attempt. Field and Wallace met while attending Brown University.
In 2022, Adobe announced its intention to acquire Figma but encountered significant regulatory challenges, particularly from the European Commission. By 2023, both companies withdrew from the agreement, and Adobe paid Figma a $1 billion termination fee. This story was originally featured on Fortune.com.
