Figma files for IPO on Nasdaq, plans to ‘take big swings’ with M&A

Figma files for IPO on Nasdaq, plans to ‘take big swings’ with M&A


Design software company Figma filed for an IPO on Tuesday, and plans to trade on the New York Stock Exchange under ticker symbol FIG.

The offering would be one of the hotly-anticipated IPOs in recent years given Figma’s growth rate and its high private market valuation. In late 2023, a $20 billion acquisition agreement with Adobe was scrapped due to regulatory concerns in the U.K. That led Adobe to pay Figma a $1 billion termination fee.

Revenue in the first quarter increased 46% to $228.2 million from $156.2 million in the same period a year ago, according to Figma’s prospectus. The company recorded a net income of $44.9 million, compared to $13.5 million a year earlier. As of March 31, it had 1,031 customers contributing at least $100,000 a year to annual revenue, up 47% from a year earlier.

The company didn’t say how many shares it plans to sell in the IPO. The company was valued at $12.5 billion in a tender offer last year, and in April it announced that it had confidentially filed for an IPO with the SEC.

Wall Street banks predicted a rush of IPOs after Donald Trump won the U.S. presidential election in November following a dry spell dating back to late 2021, when soaring inflation and rising interest rates pushed investors out of risky assets. While President Trump’s announcement of sweeping tariffs in April roiled markets and led a number of companies to delay their plans, activity has been picking up of late.

Stablecoin issuer Circle doubled in value in its early June debut and is now up more than sixfold from its IPO price. Online banking company Chime also debuted on in June, following Hinge Health’s IPO in May. Artificial infrastructure provider CoreWeave, which went public in March, jumped 46% in June and has quadrupled since its offering.

Buy now, pay later company Klarna, based in the U.K., filed for a U.S. IPO in March, as did ticket marketplace StubHub.

Figma was founded in 2012 by CEO Dylan Field, 33, and Evan Wallace and is based in San Francisco. The company had 1,646 employees as of March 31.

Before establishing Figma, Field spent two and a half years at Brown University where he met Wallace. Field then took a Thiel Fellowship “to pursue entrepreneurial projects,” according to the filing. The two-year program that Founders Fund partner Peter Thiel established in 2011 gives young people a $200,000 grant along with support from founders and investors, according to an online description.

Field is the biggest individual owner, with 56.6 million Class B shares and 51.1% of voting power ahead of the IPO.

Field said in a letter to investors that it was time for Figma to buck the “trend of many amazing companies staying privately indefinitely.”

Several companies fit that bill, including Databricks, SpaceX and Stripe.

“Some of the obvious benefits such as good corporate hygiene, brand awareness, liquidity, stronger currency and access to capital markets apply,” he wrote. “More importantly, I like the idea of our community sharing in the ownership of Figma — and the best way to accomplish this is through public markets.”

Field added that as a public company, investors should “expect us to take big swings,” including through acquisitions.

The IPO will also mark another much-needed win for Silicon Valley venture firms, which are in need of returns after the multi-year slump. Index Ventures is the largest outside shareholder, with a 17% stake before the offering, according to the filing. Greylock owns 16%, Kleiner Perkins controls 14% and Sequoia has a stake of 8.7%.

Figma said it faces “intense competition” and that loss of market share would “adversely affect our business,” but didn’t name any specific competitors.

Morgan Stanley and Goldman Sachs leading the deal along with Allen and Co. and JPMorgan Chase.

This is breaking news. Please check back for updates.

— CNBC’s Ari Levy contributed to this report.

WATCH: Figma CEO on failed Adobe deal, startup landscape, big redesign with AI



Source

Tesla shares drop on Musk, Trump feud ahead of Q2 deliveries
Technology

Tesla shares drop on Musk, Trump feud ahead of Q2 deliveries

Elon Musk, chief executive officer of Tesla Inc., during a meeting between US President Donald Trump and Cyril Ramaphosa, South Africa’s president, not pictured, in the Oval Office of the White House in Washington, DC, US, on Wednesday, May 21, 2025. Jim Lo Scalzo | Bloomberg | Getty Images Tesla shares have dropped 7% from […]

Read More
Google promotes ‘AI Mode’ on home page ‘Doodle’
Technology

Google promotes ‘AI Mode’ on home page ‘Doodle’

Google CEO Sundar Pichai addresses the crowd during Google’s annual I/O developers conference in Mountain View, California on May 20, 2025. Camille Cohen | AFP | Getty Images The Google Doodle is Alphabet’s most valuable piece of real estate, and on Tuesday, the company used that space to promote “AI Mode,” its latest AI search […]

Read More
How a beer-making process is used to make cleaner disposable diapers
Technology

How a beer-making process is used to make cleaner disposable diapers

Disposable diapers are a massive environmental offender. Roughly 300,000 of them are sent to landfills or incinerated every minute, according to the World Economic Forum, and they take hundreds of years to decompose. It’s a $60 billion business. One alternative approach has been compostable diapers, which can be made out of wood pulp or bamboo. […]

Read More