Figma IPO: Design Software Firm Goes Public with Nearly $20 Bn Valuation

Figma made its US Stock Market debut on July 31 with its IPO priced at $33 per share. The company said that Figma stock will begin trading on the New York Stock Exchange (NYSE) today, under the ticker symbol "FIG," and the offering is expected to close on August 1, but is subject to the satisfaction of customary closing conditions.

Figma’s IPO is the largest U.S. software listing since Snowflake in 2020, in terms of fully diluted valuation. The highly anticipated listing comes as investors warm up again to pure-play technology IPOs after nearly three years of market drought.

Let us break down why this startup’s IPO is important for investors, other peers alike.

Figma IPO: Fetches Valuation of Nearly $20 Billion

Figma raised $1.22 billion through the sale of 36.9 million shares priced at $33 each. The San Francisco, California-based startup exceeded its earlier target range of $30–$32. The IPO valued the collaborative design software company at about $16.1 billion based on the number of regular shares it has. 

But when you also include other forms of ownership like stock options given to employees and restricted shares, the total value of the company increases to roughly $18.5 billion, close to the $20 billion valuation it would have fetched if the acquisition by Adobe was not scrapped in December 2023 due to regulatory pushback.

Figma Stock Listing: A High-Profile Debut with Industry-Wide Implications

Figma stock's listing is being viewed as a litmus test for venture-backed tech startups, especially in the software and AI domain, that have been waiting for favorable IPO conditions since early 2022.

• Figma’s direct competitor listed in the US market, Adobe (ADBE), will be watching closely. Its success could shift competitive dynamics.
• Figma’s unlisted peers including Miro, Canva, and Sketch will also be eyeing the company’s stock market debut closely to see how the design firm is perceived by the investors.

Recent tech IPOs have attracted strong investor interest and performed well after listing, boosting confidence in upcoming launches from fast-growing and AI-focused companies.

A good listing for Figma shows that there is renewed investor confidence in cloud-based productivity software companies with strong SaaS fundamentals, and could open the floodgates for other tech companies like Stripe and Databricks, which are exploring public debuts in H2 2025.

Figma’s Core Business: Design Collaboration at Scale

Founded in 2012 by Dylan Field and Evan Wallace, Figma built its reputation on enabling real-time collaboration for UI/UX design, product prototyping, and developer handoffs, all in-browser. 

Figma’s flagship products include:

Figma continues to invest aggressively in AI-driven features across its platform, aligning with broader tech trends in productivity and creative automation. 

In recent quarters, the collaborative design firm has also started penetrating enterprise IT budgets, competing more directly with tools from Adobe Creative Cloud, Atlassian, and even Microsoft Teams (via FigJam integrations).

Figma’s Financials and Key Business Metric in a Snapshot

*The 90% figure is from secondary sources and refers generally to design professionals.

Source: Figma Filings

Structuring and Backing of Figma IPO

Figma used an auction-style IPO, where investors could choose how many shares they wanted and how much they were willing to pay. This approach shows that there’s rising interest in more flexible and investor-driven ways of going public.

Several leading banks including Morgan Stanley, Goldman Sachs, J.P. Morgan and Allen & Company played key roles in managing and supporting Figma's IPO, helping guide the process from start to finish.

Backed by Sequoia Capital, Kleiner Perkins, Index Ventures, and Greylock, Figma has been one of Silicon Valley's standout growth stories of the past decade. When it was still a private company, PitchBook and CB Insights ranked Figma among the top five most valuable design-focused SaaS startups in the world.

Why Does Figma IPO Listing Matter?

• Figma listing adds momentum to a tech IPO rebound in 2025 in the US, following strong market responses to some other names like CoreWeave and Circle.
• Changes in regulations and rapid advances in AI have turned design and productivity software into a competitive space for both established companies and new startups.

As Figma starts life as a public company under the ticker FIG, investors will be watching for:

• Figma’s Revenue growth and monetization across self-serve and enterprise segments
• Gross margins, particularly in light of growing AI infrastructure spend
• Figma’s ability to fend off incumbent pressure, especially from Adobe and the fast-evolving AI design space

Figma’s strong IPO highlights growing investor interest in essential, collaborative SaaS tools that have a clear product-market fit and the potential to shake up their industries. Its public debut could encourage more high-growth tech companies to go public in the months ahead, marking a clear reopening of the U.S. IPO market.

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