Figma

**Figma's IPO is poised to value the design software giant at approximately $16 billion, with a potential to stretch up to $16.5 billion including restricted stock units and options.** Here's a detailed analysis:

1. **Valuation and Fundraising**:
- Figma is seeking to raise approximately $1.03 billion in its IPO, which could value the company at $13.6 billion based on the offering of nearly 37 million shares priced between $25 and $28 each.
- The company's valuation is expected to reach $16.4 billion, which includes unvested stock options and all other outstanding equity.
2. **Financial Performance**:
- Figma reported a 48% increase in yearly revenue growth in the year after its proposed merger with Adobe was abandoned.
- For the first quarter of 2025, Figma posted a 46% year-over-year revenue increase, reaching $228.2 million.
- The company reported a net income of $44.9 million in the first quarter of 2025, returning to profitability after a net loss in the previous year.
3. **Market Position and Growth Prospects**:
- Figma's collaborative design tools are used by 95% of the Fortune 500 and 78% of the Forbes Global 2000, indicating widespread industry adoption.
- The company has expanded its product suite with features like Dev Mode for developers and FigJam for ideation, and it is introducing AI-powered tools.
- Figma's IPO is seen as a test of market demand for high-profile tech companies, potentially paving the way for other IPOs in the sector.
4. **Technical and Strategic Highlights**:
- Figma is a cloud-based platform that spends $300,000 daily on AWS, highlighting its heavy reliance on cloud computing for infrastructure.
- The company has authorized the issuance of "blockchain common stock," though it does not currently plan to issue this type of stock.
5. **Historical and Recent Events**:
- Figma's IPO comes after a failed acquisition by Adobe for $20 billion, which was blocked by regulatory concerns.
- The company has recently strengthened its books and generated free cash flow, indicating improved financial health.

Overall, Figma's IPO presents an opportunity for investors to participate in the growing design software market, driven by the company's strong revenue growth, expanding product offerings, and increasing adoption by large enterprises.