Figma's IPO Celebrated as Victory for Antitrust Enforcement, Despite Criticism from Silicon Valley

Lina Khan, former FTC chair, celebrated Figma's IPO, nodding to Adobe's failed acquisition of Figma in 2023 under regulatory pressure. Khan drew criticism for her antitrust enforcement in Big Tech. The IPO valued Figma at $68 billion, a massive success attributed to the company's innovative growth, not the FTC or Khan.

Former FTC chair Lina Khan celebrated Figma's blockbuster Initial Public Offering (IPO) on July 31, 2025, with a nod to the larger movement to block major tech mergers. Figma's IPO, valued at $19.3 billion, closed at 250% above its asking price, valuing the design company at nearly $68 billion [1]. This significant success came less than two years after rival Adobe dropped its planned acquisition of Figma, valued at $20 billion, due to regulatory pressure from European and US officials [1].

Khan, who led the FTC from 2021 to 2025, drew criticism in Silicon Valley for her aggressive stance on antitrust issues, particularly in Big Tech. Her celebration of Figma's IPO was seen as an "I told you so" moment by some, highlighting the potential benefits of allowing startups to grow independently rather than being acquired by existing giants [1].

Figma's stock, trading under the ticker symbol FIG, surged 250% on its first trading day, closing at $115.50 per share. The company's valuation reached $56.3 billion, surpassing the potential $20 billion valuation it would have fetched in a now-scrapped merger with Adobe Inc. [2]. The IPO was led by Morgan Stanley, Goldman Sachs, and JPMorgan, raising $1.2 billion [2].

Figma's success is attributed to its innovative growth and the company's strong market reception. The company's software, designed for web and mobile app interfaces, has expanded its product suite to include AI technologies. Figma's revenue grew by 46% year-over-year in the first quarter of 2025, and it reported 13 million monthly active users, with 95% of Fortune 500 companies using its platform [2]. The company's profitability, with an adjusted gross margin around 92%, provides ample flexibility for future investments and product development.

While some analysts and industry experts acknowledge Figma's success, they also express a hint of schadenfreude in celebrating independent success while dismissing the potential upside of the Adobe-Figma merger. "Independent scaling and strategic acquisition aren't mutually exclusive—each can serve innovation and the public, depending on the context," said Louis Lehot, a Silicon Valley-based partner at Foley & Lardner who advises on M&A and venture capital financing [1].

Figma's IPO marks a significant milestone, signaling a potential revival in the tech IPO market. The company's co-founder, Dylan Field, led Figma to a $68 billion valuation following its IPO, highlighting the company's growth from a design tool to a connected, AI-powered platform [2].

References:
[1] https://www.businessinsider.com/lina-kahn-victory-lap-figma-ipo-after-fighting-adobe-merger-2025-8
[2] https://www.cnbc.com/2025/07/31/figma-fig-starts-trading-on-nyse-after-ipo.html