Figma's IPO: A New Dawn for SaaS Valuations and the Roadmap to Canva and Databricks

The SaaS sector has long been a magnet for high-growth speculation, but 2025 marks a pivotal inflection point. Figma's upcoming IPO—slated for July 31, 2025—has rekindled investor enthusiasm for software companies with AI integration, sticky user bases, and multi-product ecosystems. With a fully diluted valuation range of $14.6–$16.4 billion and a potential post-repricing $18.8 billion tag, Figma's offering isn't just a milestone for design software. It's a bellwether for the broader tech sector, signaling that public markets are once again willing to pay premium multiples for SaaS companies with strong unit economics and visionary leadership.

Figma's IPO: A Blueprint for SaaS Success

Figma's financials are a masterclass in SaaS scalability. In Q1 2025, the company reported 46% year-over-year revenue growth and a net dollar retention (NDR) of 132%. Its 95% gross margin and 17% EBIT margin demonstrate a rare blend of profitability and expansion. These metrics position Figma to command valuations closer to 20–30x EV/ARR—a range historically reserved for unicorns like CrowdStrike and Snowflake.

The company's product diversification—from design tools to whiteboarding (Figjam), app generation (Figma Make), and AI-powered prototyping—has been a key differentiator. By expanding beyond its core design niche, Figma has created a flywheel effect: enterprise clients now rely on its ecosystem for end-to-end digital workflows. This strategy mirrors ServiceNow's evolution from ITSM to a broader automation platform, a trajectory that has historically justified high multiples.

The Ripple Effect: Canva and Databricks in the Crosshairs

Figma's IPO sets a new benchmark for SaaS valuations, particularly for pre-IPO peers like Canva and Databricks. Canva, valued at $32 billion in late 2024, has already signaled its intent to go public by 2026. With $2.5 billion in annualized revenue and 220 million monthly active users, the design platform's freemium model and enterprise adoption (95% of Fortune 500 companies) make it a compelling IPO candidate. However, Canva's $32 billion valuation will need to justify its price-to-ARR ratio of ~13x, a number Figma's $16.4 billion valuation implies could rise to 20–30x in a bullish market.

Databricks, meanwhile, is quietly preparing for its own IPO, with a $62 billion private valuation as of 2025. The data and AI platform's 50% revenue growth and 140% NDR position it as a high-margin, high-growth story. Its recent acquisition of Neon and the launch of Lakebase—a hybrid data lakehouse—further solidify its market position. Databricks' IPO could follow Figma's playbook, leveraging AI integration and enterprise lock-in to justify a valuation in the $60–$80 billion range.

The AI Factor: SaaS's New Growth Engine

Figma's integration of AI tools—such as Figma Make, which allows users to generate app prototypes via natural language—has positioned it at the forefront of the AI-driven SaaS movement. This trend is not lost on investors. Figma's $1.56 billion cash reserves and strategic board additions (including Luis von Ahn, co-founder of Duolingo) underscore its commitment to AI-driven innovation. For SaaS companies, AI is no longer a buzzword but a revenue multiplier.

Canva and Databricks are already following suit. Canva's AI-powered design suggestions and Databricks' AI/ML platform for enterprises highlight the sector's shift toward AI-centric value propositions. Investors should watch for companies that can demonstrate clear ROI from AI integration, as these will likely outperform in 2025 and beyond.

Investment Implications and the Road Ahead

Figma's IPO is more than a funding event—it's a validation of the SaaS sector's resilience. After a post-2021 slump driven by inflation and interest rate uncertainty, the market is re-engaging with high-growth tech companies. The success of recent IPOs like CoreWeave and Circle has paved the way, and Figma's $30–$32 price range (post-repricing) suggests a market willing to reward innovation.

For investors, the key takeaway is to focus on companies with:
1. Strong unit economics (high NDR, low CAC, scalable margins).
2. AI-driven differentiation (tools that reduce friction or unlock new revenue streams).
3. Enterprise stickiness (long-term contracts, cross-selling opportunities).

Figma's $18.8 billion valuation (if it hits the top of its range) will likely embolden Canva and Databricks to accelerate their IPO timelines. The broader SaaS sector, currently trading at an average 8.6x EV/ARR, could see multiples expand to 12–15x if Figma's IPO is a success. This presents an opportunity to invest in pre-IPO SaaS companies now, particularly those with AI-driven product roadmaps.

Conclusion: A SaaS Renaissance on the Horizon

Figma's IPO is a catalyst for the SaaS sector, signaling that public markets are once again open to bold valuations for high-growth software companies. As Canva and Databricks prepare to follow, investors should prioritize companies that align with the “AI + SaaS” narrative. The next decade of SaaS will be defined by platforms that integrate AI into their core workflows, and Figma's $18.8 billion valuation is a clear signal that the market is ready to reward such innovation. For those with a long-term horizon, now is the time to position for the SaaS renaissance.