Figma publicly filed its S‑1 registration with the U.S. Securities and Exchange Commission, formally kicking off its IPO process. The company plans to list its Class A common stock on the New York Stock Exchange under the ticker FIG.
Size & Valuation
Share Offering: Up to 12.5 million Class A shares will be offered by Figma, with roughly 24.6 million additional shares sold by existing investors. Underwriters also have a 30-day overallotment option of around 5.5 million shares (MarketWatch, TechCrunch).
Price Range: Expected between $25 – $28 per share (Financial Times).
Capital Raise: If priced at the top, the company could raise over $1 billion (AInvest).
Valuation: On a fully diluted basis, Figma seeks up to $16.5 billion, with mid-range projections around $13.6–16.4 billion (Financial Times).
Net Income: Interestingly, Figma reported $45 million in Q1 profit, despite last year’s net loss of $732 million—largely due to a special tax-related equity event (Financial Times).
2024 Full-Year: $749 million in revenue (48% growth year-over-year) but net loss remained elevated due to one-offs (Barron’s).
Assets & Strategy Beyond Core Business
Crypto Holdings: Figma owns about $70 million in a bitcoin ETF, plus $30 million in USDC, with plans to increase its cryptocurrency exposure (Financial Times).
Blockchain Shares: The IPO prospectus mentions authorization to issue “blockchain common stock,” though no immediate plans have been announced (Financial Times).
Leadership & Board
CEO Dylan Field (co‑founder) will retain control via super‑voting Class B shares, holding around 74% of voting power post-IPO (Financial Times). He also plans to sell ~2.35 million shares, netting approximately $60–62 million (TechCrunch).
Board Additions: Notable additions include Mike Krieger (Instagram co‑founder) and Luis von Ahn (Duolingo co‑founder), boosting expertise in product & AI (Financial Times).
Market Context & Significance
Post‑Adobe Saga: After a failed $20 billion takeover bid by Adobe, blocked over antitrust concerns in 2022–23, Figma now defines its independence—trading on its own merits (Financial Times).
Tech IPO Revival: Seen as a test case for the tech IPO market’s comeback, joining recent successful listings like Circle and CoreWeave (Financial Times).
Robust Customer Base: 13 million monthly users and presence in nearly all Fortune 500 companies (Barron’s).
Underwriters & Structure
Managed by: Morgan Stanley, Goldman Sachs, Allen & Company, and JPMorgan (joint book‐runners); BofA, Wells Fargo, and RBC as additional managers.
Class A vs B Shares: Class A will be publicly available; super‑voting Class B ensures control remains with founders.
Outlook & Considerations
AI Ambitions: Figma’s filing stresses innovation in AI-driven design workflows, prioritizing deep tech integration but noting short-term efficiency trade-offs (Barron’s).
Risks: Cited uncertainties include competitive AI dynamics, macroeconomic pressures, and potential delays in regulatory approvals (Reuters, The Verge).
Use of Funds: The company will channel proceeds and existing reserves toward repaying approximately $330 million in debt and supporting general growth initiatives (Stocktwits).
Summary
Figma’s upcoming IPO aims to raise around $1 billion, with a possible $16.5 billion valuation, marking a major milestone for the industry. The filing unveils solid financial momentum, strong investor backing, crypto diversification, and governance strategies protecting founder control. As one of the first high-profile tech IPOs in the post‑2024 slump, Figma’s public debut under FIG will not only impact its own growth trajectory but also signal broader investor appetite for innovative SaaS and design platforms with AI-forward roadmaps.
