Lina Khan sees Figma's IPO as validation of her M&A scrutiny approach.

Lina Khan, former FTC chair, celebrates Figma's IPO as a vindication of her stance on regulating Big Tech acquisitions. She argues that Figma's success demonstrates that letting startups grow independently can generate enormous value. However, critics see Figma's success as coming despite regulatory scrutiny, not because of it.

Former FTC chair Lina Khan has hailed Figma's successful initial public offering (IPO) as a vindication of her stance on regulating Big Tech acquisitions. The design software company, which went public on the New York Stock Exchange on July 31, 2025, raised $1.2 billion and was valued at $68 billion, marking one of the largest tech IPOs in recent history [1].

Khan, who has been a vocal advocate for tougher scrutiny of Big Tech mergers, believes that Figma's success demonstrates that letting startups grow independently can generate enormous value. "Figma's IPO is a testament to the power of innovation and the importance of maintaining competition in the tech sector," she said in a statement [2].

However, critics argue that Figma's success came despite regulatory scrutiny, not because of it. Adobe, which had proposed to acquire Figma for $20 billion in 2022, faced intense regulatory scrutiny from antitrust authorities in the US, UK, and Europe. The deal was ultimately called off due to antitrust concerns and the inability of Adobe to provide effective remedies [1].

The collapse of the Adobe-Figma merger has been seen as a significant milestone in the growing opposition to Big Tech mergers around the world. The failed deal resulted in a $1 billion termination fee for Figma, highlighting the potential costs of such acquisitions.

Despite the regulatory hurdles, Figma's success can be attributed to its unique business model and long-term vision. The company, founded in 2012, adopted a product-led growth (PLG) model, prioritizing user experience over aggressive sales tactics. This approach allowed Figma to scale organically through user adoption, resulting in a significant revenue surge by 2025 [2].

Moreover, Figma's integration of AI-powered design tools has positioned it as a leader in the next wave of digital creation. The company's ability to reinvest in AI and global expansion while maintaining high margins suggests a sustainable path to dominance.

In conclusion, while the debate over the role of regulatory scrutiny in Figma's success continues, there is no denying that the company's IPO has set a new benchmark for the SaaS and AI sectors. For investors, the Figma story underscores the importance of identifying and supporting companies with strong founder control, clear missions, and the ability to adapt to technological shifts.

References:
[1] https://www.financialexpress.com/world-news/us-news/from-20bn-deal-to-68bn-ipo-3-reasons-why-figma-walked-away-from-adobe-and-won-big/3934835/
[2] https://www.ainvest.com/news/figma-ipo-case-study-visionary-founding-market-beating-execution-2508/