In a stunning and widely anticipated market debut, the price for design software developer Figma skyrocketed on Thursday, closing at an astonishing $117 per share—a gain of more than 250% over its initial price range. The company’s initial public offering (IPO) raised a staggering $1.2 billion, validating its decision to go public after a failed acquisition bid by Adobe and instantly minting a new tech billionaire in its 33-year-old CEO, Dylan Field.
Vindication After Rejected Acquisition
Figma’s stock, trading under the ticker symbol “FIG” on the New York Stock Exchange, opened on Thursday afternoon at $85 per share, already well above the company’s projected IPO range of $30-$32. Investor enthusiasm was palpable from the outset, with the stock price quickly surging as high as $112 before closing the trading day at $117. This explosive performance gives Figma a new market capitalization of $50 billion, a figure that not only makes it one of the most valuable software companies in the world but also significantly exceeds the $20 billion bid from Adobe that was blocked by antitrust regulators in the U.S. and U.K. just two years ago.
The IPO’s success is a major vindication for Figma’s leadership and the regulators who rejected the Adobe deal. At the time, regulators expressed concern that the acquisition would give Adobe too much control over the market for design software and stifle competition. Figma’s successful public offering, with a valuation more than double the proposed acquisition price, demonstrates the company’s significant market potential as an independent entity and underscores the competitive threat it poses to established players like Adobe.
CEO Dylan Field Joins Billionaires’ Club
The windfall from the $1.2 billion IPO has had a dramatic effect on Figma’s founder and CEO, Dylan Field. A former Thiel Fellow and a Forbes 30 Under 30 alumnus, Field’s wealth has soared, making him a new billionaire with a net worth of at least $1.8 billion based on his share holdings. Field, who co-founded the company in 2012 with his Brown University classmate Evan Wallace, has maintained substantial control over the company.
A surprising fact is that Field and Wallace still control 99% of the company’s Class B shares, which carry 15 times the voting power of a standard Class A share. This unique structure gives Field about 74% of the voting rights, allowing him to maintain firm control over the company’s strategic direction even as it goes public. While some of Figma’s early backers, including prominent venture capital firms like Index Ventures, Greylock, Kleiner Perkins, and Sequoia Capital, sold a portion of their shares in the IPO, their remaining holdings are now worth a fortune.
A Warming IPO Market
The successful opening of Figma marks one of the biggest initial public offerings of the year and provides a significant boost to the IPO market, which has been in a multi-year retreat. Analysts at Charles Schwab attributed the market’s slowdown to years of high interest rates and economic uncertainty. However, the strong performances of several recent tech IPOs, including the successful public offering of AI startup CoreWeave in March, are seen as encouraging signs that the market is beginning to warm up. Figma’s blockbuster debut is the most substantial evidence yet that investors are once again willing to back innovative, high-growth technology companies with strong fundamentals and compelling growth stories.
The Power of Collaborative Design
Figma’s platform, which offers a suite of design products accessible directly in a web browser, has revolutionized the way designers and developers collaborate. The platform’s real-time collaborative features have made it a critical tool for product teams worldwide, from startups to large enterprises. The company’s unique value proposition and rapid growth have created a powerful brand and a loyal user base, which were clearly key factors in the market’s enthusiastic reception of its IPO. As the company begins its life as a publicly traded entity, all eyes will be on Field and his team to see if they can maintain their momentum and live up to the high expectations set by their spectacular debut.
