Figma's 333% IPO Surge Sparks Tech Listing Optimism

The recent initial public offering (IPO) of design software company Figma has reignited discussions about the broader IPO landscape for tech startups, particularly after the stock surged 333% in its first days of trading before settling back with a 27% drop on Monday [1]. The event has prompted industry insiders to speculate about whether Figma’s success could signal the end of the tech industry’s IPO drought and, if so, which companies might follow.

Many late-stage venture capital-backed tech firms, such as Databricks, Klarna, Stripe, and SpaceX, have long been considered potential IPO candidates. However, following conversations with investors, other names have emerged as more immediate prospects, including design platform Canva, fintech firm Revolut, AI company Midjourney, and defense technology company Anduril [1].

Canva, in particular, stands out as a compelling candidate. The design collaboration company has raised $589 million across 18 funding rounds at a $32 billion valuation—higher than Figma’s at the time of its IPO. With $3 billion in annual revenue and 35% year-over-year growth, Canva has demonstrated strong fundamentals. Investors suggest that Figma’s success could incentivize Canva to pursue an IPO as soon as possible [1].

Fintech companies like Revolut are also under consideration. PitchBook research director Kyle Stanford notes that only 18 venture-backed companies have gone public through June 30 of this year, a number he attributes to funding headwinds and policy uncertainties [1]. However, Figma’s performance, coupled with a market at an all-time high, has created strong demand from retail investors for new public companies, even if they are unfamiliar with the businesses involved [1].

Retail traders, according to some analysts, are being drawn into the market because of the novelty of new IPOs. As one investor put it, they “know it’s a new company,” and that alone is enough to prompt investment and social media visibility [1]. This dynamic could encourage more startups to pursue public listings in the coming months.

Cerebras, a chipmaker in the vertical AI space, is another potential IPO candidate. The company filed an S-1 in September 2024 but delayed its IPO due to regulatory concerns over a $335 million investment from UAE-based G42. Now cleared for listing, Cerebras has held off on an IPO as it raises $1 billion in additional funding [1].

Despite the possibility of more IPOs, many of the largest and most valuable private companies, including OpenAI, Stripe, and SpaceX, remain hesitant to go public. These firms have strong incentives to maintain their private status, avoiding public market scrutiny and retaining access to private capital for liquidity needs [1].

Some investors argue that the absence of these large private companies in the public market may have hidden costs. Kirsten Green of Forerunner Ventures noted that one of the original purposes of the public market was to allow broader participation in economic growth, not to concentrate gains among a few [1].

While many companies consider remaining private, Stanford from PitchBook believes the list of potential IPO candidates is extensive, with “probably about 300 other companies that it could be” [1]. As the IPO market continues to evolve, Figma’s performance has undoubtedly served as a catalyst, encouraging startups to reconsider their public market strategies.

Source: [1] Tech industry insiders share their picks for the next startups who will ride the IPO wave after Figma’s blockbuster debut (https://fortune.com/2025/08/04/figma-ipo-who-is-next-tech-industry-insiders-top-picks-startups-venture/)