Figma Relaunches IPO Plans: Valued at $19.3B After Adobe Acquisition Collapse

Figma, the design software developer once poised to be acquired by Adobe for $20 billion, has formally relaunched its plans for an initial public offering (IPO) following the collapse of the acquisition due to regulatory scrutiny. On the evening of July 30, the company announced a public offering priced at $33 per share under the ticker symbol “FIG” on the New York Stock Exchange, aiming to raise $1.2 billion and secure a market valuation of $19.3 billion.

According to Figma’s IPO prospectus, the proceeds from the offering will primarily go to existing shareholders, allowing major investors an opportunity to exit via the public markets. The move signals sustained investor confidence in Figma’s standalone prospects, even after the failed acquisition attempt by Adobe in 2023.

Founded in 2012 in San Francisco by CEO Dylan Field and Evan Wallace, Figma has focused on building a cloud-based collaborative design platform that enables users to design, prototype, and co-create directly through their web browsers. The product quickly gained traction among global design communities, and the company now maintains offices in France, Germany, Japan, Singapore, and the United Kingdom, serving a broad base of enterprise and individual users.

Adobe had originally announced the acquisition in 2022, emphasizing the strategic value of integrating Figma’s collaborative design capabilities into its creative cloud ecosystem. However, the deal faced intense scrutiny from regulatory bodies in the U.S. and Europe, ultimately leading to its termination in 2023.

Despite Adobe paying a $1 billion termination fee to Figma, the collapsed deal unexpectedly amplified Figma’s visibility in the marketplace, paving the way for its continued independent growth.

Financially, Figma reported quarterly revenue between $247 million and $250 million for the period ending June, marking a 40% increase from $177.2 million in the same quarter of the previous year. Operating income ranged from a modest $500,000 loss to a $2.5 million profit—an impressive improvement from the prior year’s $894 million loss driven largely by stock-based compensation.

In the March quarter, Figma posted year-over-year revenue growth of 46%, reaching $228.2 million, with net income surging to $44.9 million—nearly triple the profit from the same period a year earlier—highlighting the strength of its business model and the expanding momentum of its cloud subscription services.

As for its ownership structure, CEO Dylan Field remains the largest individual shareholder, holding 56.6 million shares and controlling voting rights for an additional 26.7 million shares. Among institutional investors, Index Ventures leads with a 17% pre-IPO stake (65.9 million shares), followed by Greylock Partners at 16%, Kleiner Perkins at 14%, and Sequoia Capital at 8.7%.

Figma’s successful IPO represents a much-needed boost for the tech IPO landscape, which has remained relatively cautious in recent years. Although companies like Circle and CoreWeave have recently gone public, the broader market has seen limited activity. Figma’s robust revenue growth, improving profitability, and distinctive position in collaborative design have positioned it as a standout representative of the new digital economy.

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