Figma’s Blockbuster IPO Signals a Rebound for Tech Start-ups

SAN FRANCISCO, CA – In a major win for the tech industry, design software giant Figma has successfully priced its Initial Public Offering (IPO), raising over $1.2 billion and achieving a fully diluted valuation of nearly $20 billion. The San Francisco-based company will begin trading on the New York Stock Exchange (NYSE) on Thursday, July 31, 2025, under the ticker symbol “FIG.” This highly anticipated listing is being closely watched as a bellwether for other venture capital-backed start-ups that have been waiting for years to go public amid a period of market volatility and rising interest rates.

Figma’s shares were priced at $33, a significant jump from its initial target price range of $25-$28, which had already been raised to $30-$32 due to strong investor demand. The IPO was reportedly several times oversubscribed, a clear indication of the high level of investor enthusiasm for the company. This valuation is notably close to the $20 billion that Adobe offered to acquire Figma for in 2022—a deal that ultimately fell through after a year of intense regulatory scrutiny.

The public listing is expected to provide a substantial windfall for Figma’s early investors, including prominent Silicon Valley venture capital firms such as Index Ventures, Iconiq Capital, Sequoia Capital, and Greenoaks Capital Partners. Index and Iconiq, who first backed the company in 2013 when shares were valued at a mere 9 cents, now hold positions worth hundreds of millions of dollars. A significant portion of the proceeds from the IPO will also go towards covering the tax liability from a prior sale of employee stock, providing liquidity for long-time team members.

Financially, Figma is coming into its IPO in a strong position. The company has demonstrated robust growth, with sales up 46% year-over-year in the first quarter of 2025. It reported a net income of $45 million on $228 million in revenue for that quarter. This performance contrasts with the company’s 2024 net loss of $732 million, which was largely due to a one-time decision to cover employee stock sale taxes. The company’s balance sheet was also bolstered by a $1 billion break-up fee from Adobe following the collapse of the acquisition deal.

Figma’s business model is centered on providing a collaborative, cloud-based platform for design and prototyping, a feature that has made it a favorite among designers and developers alike. The company’s co-founder and CEO, Dylan Field, will maintain control of the company post-IPO through the use of super-voting shares, ensuring his vision for the company’s future remains central.

The successful IPO of Figma, along with other recent listings like data center operator CoreWeave and stablecoin issuer Circle, offers a wave of encouragement for the broader start-up ecosystem. It suggests that public markets are once again open to high-growth, profitable tech companies with a clear path forward.