Reports suggest that Figma, the collaborative design platform with a reputation for changing product team practices and strategies, is about to go public in upcoming tech IPOs (Initial Public Offerings). The Information reports that Figma’s IPO has the potential to generate up to $1.5 billion, providing investors with renewed hope in the public markets for high-growth, design-focused startups.
If the listing happens this year as expected, it will not only be a significant liquidity event but also demonstrate the continued demand for productivity software among investors, given the pandemic and post-pandemic cooldown.
Why This Matters
Figma is no ordinary startup. In 2022, Adobe’s $20 billion acquisition deal was in the news, but it was ultimately scrapped in late 2023 due to pressure from antitrust regulators in both the U.S and Europe.
Figma’s impact on the design and developer ecosystem was emphasized once again, as the merger failed beyond regulatory obstacles. Figma, a company founded just over ten years ago, has redefined UI/UX collaboration by enlarging its workflow to include product managers, developers, and marketers.
Figma’s interface design is reminiscent of Google Docs, as it features cloud-based, real-time, and tailored to teams.
The IPO Signals More Than Just Growth
Figma has reportedly been in talks with investment banks and is contemplating a price tag of up to $10 billion, although that amount is still being determined. Considering the economic challenges and tighter venture capital climate, this valuation is significant not only for Figma but also for other design-oriented or SaaS-focused companies.
This is a wise decision, in my opinion. In light of the Adobe deal’s collapse, Figma may have gone silent or sought out another acquirer. It seems that the company is embracing its independence, which could be advantageous. Its user base is highly loyal, and it has a significant market share across tech companies and startups. Furthermore…
The market demands a growth company with effective usage, widespread enterprise adoption, and deemed essential for an IPO. Such a listing can help revive investor confidence in the tech industry.
What’s Next?
As of now, Figma has not officially announced any such plans and as with most IPO plans, the details could change depending on market conditions. The conversation is lively and the timing is opportune. Despite the decline in NASDAQ and the rise of other techIPOs like Stripe and Databricks, Figma could still lead the way in terms of technology listings.
However, the pressure will be on. Public markets don’t tend to always reward innovation, they reward profitability, growth, and predictability. Figma must demonstrate that its success is not solely focused on producing products, but also financially sustainable.
Final Thoughts
To me, the possibility of Figma going public through an IPO is more than just a financial milestone. It’s a cultural one. It demonstrates the growth of tools designed for designers and all stakeholders involved in product development. This proves that excellent design is no longer a luxury; it is an essential business asset.
If Figma pulls this off, it won’t just be a win for design-led startups, it’ll be a strong signal that product-first companies can thrive even in uncertain markets.
