Figma Shares Surge 267% Above IPO Price, Valuation Tops $70 Billion

Figma Inc.'s shares pared gains on their second day of trading, trading at $121.23 after tripling above the IPO price. The company raised $1.2 billion in its IPO, priced at $33 per share, and has a market value of $59.1 billion. Figma's IPO made billions for its largest VC investors, including Index Ventures, which invested nearly $100 million and saw its stake worth $7.23 billion. The company had net income of $44.9 million and revenue of $228 million in Q1 2024.

Figma Inc.'s shares experienced a notable drop on their second day of trading, closing at $121.23, after tripling above their initial public offering (IPO) price of $33. The company raised $1.2 billion in its IPO, which was priced at $33 per share. This offering was the fourth-largest U.S. IPO of the year, and Figma's market value has since surged to $59.1 billion [2].

The company's impressive debut comes on the heels of a three-year freeze in the tech listings market. The strong reception of Figma's IPO has renewed hopes for a broader reopening of the pipeline, as private companies and investors look to capitalize on improving market conditions and strong demand for growth names [2].

Figma's shares rose another 10% in premarket trading on Friday, extending their debut-day gains. The company's shares closed at $115.50 on Thursday, compared to the IPO price of $33. This 250% surge lifted Figma's market value to nearly $68 billion, far exceeding the $20-billion valuation in a now-scrapped buyout deal with Photoshop maker Adobe Inc. [2].

The company's success has made billions for its largest venture capital (VC) investors, including Index Ventures, which invested nearly $100 million and saw its stake worth $7.23 billion [3]. Figma's first-quarter (Q1) 2024 net income was $44.9 million, and revenue was $228 million, highlighting the company's robust financial performance [3].

Figma's IPO was oversubscribed by more than 40 times, with over half the orders unfilled. The company sold 12.47 million shares, while early backers like Index Ventures, Greylock Partners, and Kleiner Perkins offloaded 24.46 million shares [3]. The pricing—initially marketed at $30 to $32 before nudging higher—proved conservative as the market bid it skyward.

The company's strong performance has been attributed to its focus on AI and cloud-based collaborative design tools. Figma provides real-time collaboration features that have won over designers from marquee clients like Google, Microsoft, Netflix, and Uber [3]. The company's Dev Mode and Figma Make features have further expanded its reach and capabilities, positioning it as a central player in the digital economy.

Despite the impressive debut, Figma faces challenges ahead. The company must balance growth with its stellar profitability, especially as it fends off AI upstarts and eyes acquisitions. CEO Dylan Field's new "moon-shot" compensation package, which starts vesting when Figma's 60-day average stock price hits $60, underscores the company's ambitious goals [3].

Figma's success is expected to deliver more wealth to more Silicon Valley firms than any offering since 2021. The company's auction-style order process, which allowed investors to name their price and quantity, fueled the frenzy and offers a potential blueprint for future listings [3].

References
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3TP12D:0-figma-expects-ipo-price-between-30-and-32-per-share/
[2] https://www.reuters.com/legal/transactional/design-software-maker-figma-extends-gains-after-blockbuster-nyse-trading-debut-2025-08-01/
[3] https://www.ainvest.com/news/figma-software-maker-surges-250-debut-1-2-billion-ipo-2508/