Figma, the design software, is gearing up for an initial public offering, with its CEO previously holding a fellowship at Peter Thiel's philanthropic organization.
Figma Inc., a popular design software platform, made a splash in the tech world with its successful initial public offering (IPO) in July 2025. The company, which caters to people with various skill levels, debuted on the New York Stock Exchange with a bang.
The lead underwriters for Figma's IPO were Morgan Stanley, Goldman Sachs, Allen & Co., and J.P. Morgan. The company's stock started trading in the range of $95 to $100 per share, potentially valuing Figma at nearly $59 billion. However, the IPO price was set at $33 per share, giving Figma an initial valuation of approximately $19.3 billion.
Following the IPO pricing, Figma's stock opened at about $85 per share and climbed as high as $124.63 per share on its trading debut. This surge increased the company's market valuation to nearly $68 billion by market close on its first day of public trading.
Key IPO details include:
- A total of 36,937,080 Class A common stock shares were offered, raising approximately $1.2 billion from the IPO.
- The offering included shares sold by both Figma (12,472,657 shares) and existing shareholders (24,464,423 shares); Figma itself received proceeds only from its own shares, not from those sold by existing investors.
- The IPO was highly oversubscribed (40 times), reflecting strong investor demand.
Dylan Field, Figma's CEO and co-founder, remained CEO and chair of the board after the IPO. Field attended Brown University for 21⁄2 years before accepting a Thiel Fellowship and leaving school to work full-time on Figma.
Some of Figma's high-profile customers include streaming giant Netflix, travel lodging firm Airbnb, and language learning app Duolingo. Silicon Valley venture capital firms, including Kleiner Perkins and Sequoia, are among Figma's prominent backers.
However, intense competition in the design software space, particularly due to the rapid adoption of AI, could affect Figma's market share. This competition is evident in the case of stablecoin giant Circle, which is targeting a $6.7 billion valuation in its IPO.
Despite this competition, Figma's IPO could far exceed the $20 billion buyout deal with Adobe that fell through in December 2023. With its innovative design software platform and embedded AI, Figma is poised to continue lowering the participation floor and raising the ceiling for high-craft creations.
[1] Figma's IPO Pricing and Valuation (2025) - TechCrunch [2] Figma's Stock Soars on First Day of Trading (2025) - Bloomberg [3] Figma's IPO Details (2025) - Business Insider [4] Figma's IPO Offering (2025) - Wall Street Journal
- The capital raised from Figma's initial public offering (IPO) in 2025, as reported by Business Insider, amounted to approximately $1.2 billion.
- With a surge in stock price on its trading debut, Figma's market valuation reached nearly $68 billion on its first day of public trading in 2025, according to Bloomberg.
- Despite fierce competition in the design software market, particularly from the adoption of AI, Figma's IPO could surpass the $20 billion buyout deal with Adobe that fell through in December 2023, as suggested by TechCrunch.
