Figma's IPO Surges 250% on First Day, Early Investors See 40x Returns

Figma, a design collaboration platform, made a remarkable debut on the New York Stock Exchange, surging 250% on its first day of trading. This impressive performance has generated substantial returns for its early investors, who have seen their investments multiply significantly. The company's initial public offering (IPO) has been a windfall for Greylock, one of its early investors. Greylock's total investment in Figma amounted to approximately 50 million dollars. At the time of the IPO, the value of Greylock's stake was around 2.03 billion dollars, representing a return on investment of over 40 times. Excluding the shares that had already been sold, Greylock's stake value rose to approximately 6.75 billion dollars by Thursday. This extraordinary return underscores the potential for high rewards in the tech investment landscape, particularly for companies that innovate in the design and collaboration space.

Figma's success story serves as a testament to the power of strategic investment and the potential for exponential growth in the technology sector. The company's journey from a startup to a 650 billion dollar valuation is a remarkable achievement. Three years ago, Figma's investors were on the brink of receiving significantly lower returns. In 2022, Adobe had planned to acquire Figma for 200 billion dollars, but the deal was terminated in 2023 due to regulatory issues. This week, Figma went public at a price of 33 dollars per share, with a fully diluted valuation of 185 billion dollars. By Thursday's close, its fully diluted valuation had soared to 650 billion dollars, far exceeding the proposed acquisition price from 2022.

Index Ventures, another major investor, led Figma's seed round in 2013 when the company's valuation was just 9 cents per share. By the time of the IPO, Index's stake was valued at 21.7 billion dollars. Excluding the shares sold during the IPO, Index's stake value climbed to 72.3 billion dollars by Thursday. Kleiner Perkins and Sequoia Capital were also early backers of Figma, recognizing the potential of the design collaboration platform from its early stages. Kleiner Perkins invested 90 million dollars in Figma during its B round in 2018, when the share price was 33 cents. By the IPO, these shares were valued at 1.82 billion dollars, and by Thursday, their value had risen to 60.5 billion dollars. Sequoia Capital, which led Figma's C round, invested approximately 150 million dollars. At the IPO price, Sequoia's stake was valued at 1.13 billion dollars, and by Thursday, it had increased to 37.5 billion dollars.

Other notable investors include Andreessen Horowitz, which led the D round when Figma's valuation was 20 billion dollars, and Durable Capital Partners, which led the E round when the company's valuation reached 100 billion dollars. Figma's total private funding exceeded 300 million dollars, highlighting the significant interest and confidence in the company's potential. The company's IPO has not only provided substantial returns for its investors but also underscored the importance of design in the tech industry. The founders' vision and the strategic investments made by early backers have propelled Figma to unprecedented heights, making it a standout success story in the tech investment landscape.