San Francisco-based design application firm Figma has raised $1.22 billion in its U.S. IPO, pricing shares at $33, above the previously suggested range of $30–$32. The sale indicates rebounding investor interest in high-growth tech companies after a long IPO drought.
FIGMA raises $1.22 billion in IPO
The company and some of its early investors sold 36.9 million shares, marking a strong debut. Figma had earlier raised its price range this week, signalling growing demand among institutional investors. With this IPO, Figma is valued at $19.34 billion on a fully diluted basis — a notable rise from its $12.5 billion valuation in a secondary share sale last year.
Figma’s IPO debut follows months of turmoil over a collapsed plan by Adobe to acquire it in a deal valued at $20 billion, which was cancelled in December 2023 amid antitrust regulatory concerns in the U.S. and Europe. The choice to go public rather reflects a wider pattern of venture-backed companies heading back to capital markets as fortunes improve.
The offering is being regarded as a bellwether for other tech IPOs in 2025. Various companies, especially software and AI firms, are now gauging investor appetite, spurred by softening inflation, anticipated rate reductions, and more robust public market valuations.
“This is a turning point,” said Sam Kerr, equity capital markets head at Mergermarket. “The fact that IPOs such as CoreWeave and Circle have gone well has built a positive climate for tech listings, a lot of which have been held back since the start of 2022.”
What is Figma?
Figma, which was established in 2012, offers collaborative web-based design tools that are employed by product teams across the globe. The company has been growing its platform aggressively and is incorporating AI features to streamline design workflows and increase productivity.
Supported by leading venture companies including Sequoia Capital and Kleiner Perkins, Figma chose an auction-style IPO format, where investors could bid both price and number. This approach is designed to more accurately measure demand and distribute shares more effectively.
Figma’s good performance may inspire momentum for other high-profile tech IPOs, according to PitchBook senior analyst Derek Hernandez. “Its performance is likely to set the tone for unicorns like Stripe and Databricks, which are planning listings later this year.”
Figma’s stock will start trading on the New York Stock Exchange on Thursday under the symbol “FIG.” Morgan Stanley, Goldman Sachs, J.P. Morgan, and Allen & Company led the IPO as joint bookrunners.
