Figma the Software Maker Surges 250% in Debut After $1.2 Billion IPO

Figma Inc. has stormed onto the public stage, its shares rocketing 250% on their first day of trading after the design software maker and its shareholders raised $1.2 billion in an initial public offering.

The San Francisco-based company’s debut, which saw shares close at $115.50 after pricing at $33, marks the most explosive first-day pop for a U.S.-traded firm raising over $1 billion in at least three decades, according to Bloomberg data. By the closing bell, Figma’s market value stood at $56.3 billion—a figure that towers over the $20 billion it would have fetched in a derailed merger with Adobe Inc. in 2023. On a fully diluted basis, factoring in stock options and restricted units, that valuation balloons past $65 billion.

This isn’t just a financial milestone; it's a bold statement about the appetite for innovative software companies in a market hungry for growth stories. Figma’s ascent reflects a broader shift—design and collaboration tools are no longer niche; they’re critical infrastructure for the digital economy.

A Valuation Leap That Rewrites the Script

The numbers are staggering. Figma’s $56.3 billion market cap after its debut dwarfs the $20 billion valuation tied to its abandoned Adobe deal, a transaction scuttled by regulatory pushback. That merger’s collapse, which left Adobe footing a $1 billion termination fee, now looks like a dodged bullet for Figma. Investors have instead crowned it with a premium that speaks to its momentum: a 46% year-over-year revenue spike in the first quarter of 2025, paired with an adjusted gross margin near 92%. For context, that profitability rivals the titans of the software world, giving Figma room to reinvest aggressively.

The IPO itself was a masterclass in demand. Oversubscribed by more than 40 times, with over half the orders unfilled, it signaled a clamor that drowned out any whispers of caution. Figma sold 12.47 million shares, while early backers like Index Ventures, Greylock Partners, and Kleiner Perkins offloaded 24.46 million. The pricing—initially marketed at $30 to $32 before nudging higher—proved conservative as the market bid it skyward.

Dylan Field: The Visionary at the Helm

At the center of this whirlwind is Dylan Field, Figma’s 32-year-old co-founder and CEO. His stake, now valued at roughly $6 billion, underscores his outsized role in the company’s rise. But it’s his new “moon-shot” compensation package, inked just last month, that’s turning heads. The 10-year plan starts vesting when Figma’s 60-day average stock price hits $60—with shares already at $115.50, the highest target of $130 feels tantalizingly close. Through Class B shares carrying 15 votes each, Field retains 74.1% of the voting power, cementing his grip on Figma’s future.

Field’s story is classic Silicon Valley. He ditched Brown University for a Thiel Fellowship, teaming up with Evan Wallace to launch Figma in 2012. Their bet on a cloud-based, collaborative design platform paid off as companies flocked to its browser-based interface. “This isn’t the endgame,” Field told Bloomberg. “We have to keep sprinting. The public markets can’t distract us.” For him, the IPO is a “big brand moment”—a chance to spotlight design’s pivotal role in tech.

From Design Darling to Platform Powerhouse

Figma’s flagship product, a tool for crafting web and mobile interfaces, won over designers with its real-time collaboration chops. But the company isn’t stopping there. Recent years have seen it broaden its reach with Dev Mode, launched in 2023 to bridge designers and developers, and Figma Make, an AI-driven feature that spins natural language prompts into prototypes. This isn’t just expansion—it’s a bid to become indispensable across the workplace, from product managers to marketers.

The financials back up the ambition. First-quarter revenue leapt 46% year-over-year to $228 million, with net income of $44.9 million. That growth, though tempered by a $732 million net loss in 2024 due to rising operating costs, highlights a company scaling fast. Its subscription model—charging based on users and seat types—mirrors the software-as-a-service playbook, but Figma’s execution sets it apart.

AI is the next frontier. With rivals like Lovable and Bolt nipping at its heels, Figma is doubling down. “We’ve got so much room to explore AI products and experiences,” Field said. Sequoia Capital’s Andrew Reed, a board member, sees Figma evolving into a universal collaboration platform—a vision bolstered by its widening user base.

A Shot in the Arm for IPOs

Figma’s triumph reverberates beyond its own ledger. U.S. first-time share sales have hit $21 billion this year, edging past 2024’s $20.2 billion for the same stretch. The company’s auction-style order process—where investors named their price and quantity—fueled the frenzy, offering a potential blueprint for future listings. It’s a spark for an IPO market desperate to shake off its post-pandemic slumber.

Field’s gaze is already elsewhere. He’s vowed to pursue mergers and acquisitions “at scale,” targeting teams and assets that fit Figma’s culture and mission. “There’s so much out there that can supercharge our product design and development,” he said. With IPO proceeds and a lofty valuation, Figma has the firepower to play consolidator.

The Road Ahead

Figma’s debut is a triumph of vision and timing, but the public markets are a fickle beast. Balancing growth with its stellar profitability will be key, especially as it fends off AI upstarts and eyes acquisitions. For now, though, the spotlight is firmly on Field and his team. This isn’t just a win for Figma—it’s a signal that the tools shaping our digital world are finally getting their due.