Design startup Figma completes secondary stock sale, valuing the company at $12.5 billion.
1min read An investment group including Coatue Management, Alkeon Capital Management and General Catalyst Partners has invested in design startup Figma, valuing it at $12.5bn, according to a person familiar with the matter. At the time of the deal, Figma’s annual recurring revenue was more than $700m, which is expected to exceed $1bn next year, said one of the people.
A spokesperson for Figma said the deal was a secondary stock sale, which has closed, but declined to comment on the identity of some investors or the company’s revenue. The secondary stock sale was also described as a tender offer involving current and former employees and other shareholders.
A spokesperson for Figma said other investors included hedge fund SurgoCap Partners, Atlassian Corp, Fidelity Management&Research Co, Franklin Templeton’s Franklin Venture Partners, Iconiq, Sequoia Capital, Thrive Capital, Greenoaks Capital Partners, Durable Capital Partners, Andreessen Horowitz and Kleiner Perkins. Apple executives Eddy Cue, Goanna Capital and XN also participated in the investment, according to a person familiar with the matter.
In December, Adobe (ADBE.US) and Figma jointly announced that they had agreed to terminate a merger agreement announced on September 15, 2022. The companies said in a statement that they remained convinced of the benefits of a merger and of promoting competition, and agreed to terminate the merger because they had jointly concluded that “no clear path to obtaining the necessary regulatory approvals from the European Commission and the UK’s Competition and Markets Authority (CMA)”.
This means that Adobe’s $20bn cash-and-stock acquisition of Figma has fallen through, and was one of the largest private software company deals to be “killed” in history. For that, Adobe will pay Figma $1bn in a termination fee.
