Figma IPO raises $1.2 billion exceeds price range signals market recovery

Figma, the design software unicorn led by Dylan Field, successfully completed its initial public offering (IPO) on the New York Stock Exchange, raising $1.2 billion in proceeds, with the potential to reach $1.4 billion including the over-allotment option [1]. The company’s shares were priced at $33, surpassing the initial $25–$28 range, reflecting strong investor demand [1]. This event marks a pivotal moment in the venture-backed IPO market, signaling a potential recovery after a prolonged period of subdued activity.

The IPO comes more than a year and a half after Figma’s planned $20 billion merger with Adobe collapsed, a deal that had underscored its strategic value [1]. Despite this setback, Figma’s IPO valuation of $19 billion demonstrates confidence in its standalone potential and market position. According to Derek Hernandez, an emerging technology analyst at PitchBook, Figma’s performance stands out even among recent high-growth software IPOs, thanks to its 50% year-over-year revenue growth and profitability in the first quarter of 2025, with a net income of $44.9 million [1].

Greg Martin of Rainmaker Securities noted that Figma’s failed Adobe merger itself was a validation of its strategic significance and market influence [1]. The company now faces the challenge—and opportunity—of potentially overtaking Adobe as the leading design software company, leveraging its cloud-native collaborative platform.

Interestingly, the IPO proceeds were largely directed to selling shareholders, with the Marin Community Foundation’s MCF Gift Fund selling 13.4 million shares for $441 million [1]. This underscores the broader trend of top venture capital firms cashing in, with four of the top VC firms—Index, Greylock, Kleiner Perkins, and Sequoia—holding stakes valued above $1 billion in Figma [1].

Figma’s successful IPO is being seen as a potential bellwether for the broader market, especially for other high-growth SaaS and AI companies [1]. PitchBook’s Hernandez emphasized that the number of IPOs this year has increased by 45% compared to the same period in 2024, suggesting a cautious but discerning investor appetite [1]. Rainmaker’s Martin added that while the current market environment is not as exuberant as in 2021, strong fundamentals and differentiation are enabling high-quality companies to test the waters successfully again [1].

Figma’s IPO reflects a broader trend of selective but growing investor interest in venture-backed technology companies with compelling growth narratives. As the market continues to evolve, Figma’s performance could provide critical insights into whether the IPO market is entering a new phase of recovery or merely experiencing a temporary upswing.

Source: [1] As Figma goes public, a turning point in the long-awaited IPO market recovery takes shape (https://fortune.com/2025/07/31/figma-venture-backed-ipo-circle-coreweave-high-growth-software-listings/)