Tech company Figma eyes a $16.4 billion valuation during its initial public offering (IPO), marking a rebound for tech IPOs.
**Figma Prepares for Highly Anticipated NYSE Debut**
In a significant move for the tech industry, cloud-based design platform Figma is set to make its debut on the New York Stock Exchange (NYSE), with the company targeting a valuation of up to $16.6 billion. The IPO is expected to take place close on the heels of stablecoin giant Circle, with shares priced between $25 and $28 each, according to reports.
Figma, which allows collaborative creation and editing of apps, websites, and software interfaces, has seen its revenue soar in recent years. In 2024, a majority of its revenue came from outside the United States, potentially exposing it to demand softness if international clients tighten their budgets in response to tariffs. However, the company's strong performance is evident, with revenue rising by 46% in the first three months of 2025 and net income tripling during the same period.
The IPO is expected to raise up to $1.3 billion for Figma, although specific details about the investors involved are not widely reported. The company's focus on AI is a key aspect of its strategy, but it also warns that design tools driven by the technology could make some customers less reliant on its platform. To counter this, Figma may take "big swings" with M&A, as co-founder and CEO Dylan Field noted the company's preparedness to make decisions that may not seem immediately rational.
Morgan Stanley, Goldman Sachs, Allen & Co, and J.P. Morgan are among the underwriters for the offering. Figma is preparing to list under the symbol "FIG". Notably, the company had around $70 million invested in Bitwise's bitcoin exchange-traded fund as of March 31, and it intends to allocate a further $30 million to bitcoin.
The IPO comes more than a year after Figma's $20 billion sale to Adobe failed, setting a high benchmark for investors looking at Figma's valuation post-IPO. Tomasz Tunguz, founder of venture capital firm Theory Ventures, stated that Figma's product serves as its primary marketing engine, fostering viral, bottoms-up adoption.
However, the IPO's success will depend on various factors, including market conditions and investor confidence. Renewed trade tensions could add to caution among IPO investors, potentially causing further disruption. Additionally, restrictive immigration policies could impact Figma's ability to recruit talent, as the company has had to adjust hiring practices due to changes in visa assessment frameworks.
Despite these challenges, Figma's IPO is seen as a positive sign for the return of activity in the IPO market. The company's solid fundamentals, clear path to profitability, and focus on innovation make it an attractive proposition for investors. As corporate attorney Leslie Marlow of Blank Rome notes, investor attention remains on companies with these qualities.
Investors will be closely watching Figma's IPO, with the tech industry eagerly awaiting the company's next move. With a strong performance in the first quarter of 2025 and a promising IPO on the horizon, Figma is poised to make a significant impact in the tech industry.
Figma's IPO, valued between $16.6 billion, will be a significant event in the tech industry, with its focus on AI technology and bitcoin investments providing a unique appeal for investors. The company's strong financial performance, evidenced by a 46% revenue increase in Q1 of 2025 and tripling net income during the same period, may attract investor attention, especially in the face of increasingly competitive business landscapes.
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