San Francisco-based Figma, the collaborative design platform that has become a staple for designers and product teams worldwide, has increased the expected price range for its upcoming initial public offering (IPO). According to a regulatory filing, the company now expects its shares to trade between $30 and $32 each when it lists on the New York Stock Exchange (NYSE) under the ticker FIG on July 31.
The company initially proposed a range of $25 to $28 per share on July 21, aiming to raise about $1 billion. With the new price range, Figma now expects to raise approximately $1.2 billion, reflecting strong investor demand for the high-profile tech IPO.
At the updated share price range, Figma will achieve a valuation between $17.6 billion and $18.8 billion on a fully diluted basis, signaling continued confidence from the market in the company’s growth potential and dominance in the design collaboration space.
From Startup to IPO: Figma’s Journey
Figma emerged in 2012 as a cloud-based collaborative design tool founded by Dylan Field and Evan Wallace. Over the years, the platform has revolutionized digital product design by allowing teams to create, share, and iterate designs in real time. Unlike traditional desktop software, Figma operates entirely in the cloud, which enables seamless collaboration across geographies and devices.
The company has raised approximately $1.4 billion from top-tier venture capital firms, including Sequoia Capital, Andreessen Horowitz, Greylock, and Kleiner Perkins, according to Crunchbase. These investors recognized Figma’s potential to challenge entrenched design software like Adobe Illustrator and Photoshop by offering a collaborative-first approach.
Figma gained widespread adoption among startups and enterprises for streamlining the design workflow. The platform supports product designers, engineers, and marketers, creating an ecosystem of collaborative tools that drives productivity and innovation in design teams.
Adobe’s Failed Acquisition and Regulatory Hurdles
Figma’s rise to prominence attracted the attention of Adobe, which announced in September 2022 that it would acquire Figma for $20 billion in cash and stock. The proposed acquisition would have ranked as one of the largest ever for a venture-backed startup, signaling Figma’s massive strategic value to the creative software giant.
However, antitrust regulators in the U.K. and European Union raised concerns that the deal would stifle competition in the design software market. By December 2023, Adobe officially terminated the acquisition, walking away from the blockbuster transaction.
The failed acquisition turned into an unexpected advantage for Figma. It demonstrated the company’s independence and resilience, while also leaving the door open for further growth as a standalone entity. Investors remained confident in Figma’s trajectory, which led to additional funding rounds and the current IPO plans.
Strong Financial Performance and Growth
Figma’s S-1 filing provided the first public look at its financials, and the numbers reinforce the company’s growth story.
- In Q1 2025, Figma reported $228 million in revenue, a 46% increase year-over-year.
- The company returned to profitability in late 2024, reversing a temporary operating loss of $894 million linked to one-time employee stock compensation expenses.
- Revenue growth reflects increased adoption of its platform by both startups and large enterprises, showcasing its market penetration and pricing power.
Figma’s profitability milestone strengthens its IPO narrative. Investors favor tech companies that demonstrate a path to sustainable profits, especially in a market environment where valuation discipline has returned after the 2021-22 tech bubble.
Investor Interest and Secondary Market Activity
Even after the Adobe deal collapse, Figma attracted strong investor appetite. In July 2024, the company raised $700 million in a secondary market transaction that valued the company at $18.8 billion. Leading investors General Catalyst, Coatue, and Alkeon Capital co-led that financing round, reaffirming confidence in Figma’s future.
The secondary market transaction gave early employees and investors liquidity while strengthening the company’s financial flexibility. It also set the stage for the current IPO, which aims to raise primary capital for expansion and innovation.
The increased IPO price range indicates that institutional investors view Figma as a premier tech IPO in 2025, capable of commanding a premium valuation.
IPO Market Context and Strategic Timing
Figma’s decision to list in 2025 aligns with a resurgent IPO market for high-growth tech companies. After two years of market volatility and regulatory scrutiny, investors are cautiously re-engaging with technology listings, favoring companies that combine growth with clear profitability pathways.
By demonstrating revenue acceleration and renewed profitability, Figma positions itself as a credible, de-risked IPO candidate. The timing also capitalizes on renewed optimism in the SaaS and productivity software sectors, driven by cloud adoption and AI-enhanced workflows.
Competitive Position in the Design Industry
Figma dominates the collaborative design market and faces limited direct competition. Its core strength lies in real-time collaboration, a feature that sets it apart from traditional tools like Adobe XD and Sketch.
The company expands its ecosystem through FigJam, a collaborative whiteboarding tool that targets brainstorming and ideation workflows. This multi-product approach strengthens its enterprise appeal, making Figma a critical tool for digital product teams.
By building a strong network effect, Figma locks in teams and organizations that rely on its cloud-first architecture. This sticky user base drives recurring subscription revenue, which appeals to long-term investors.
Anticipated Market Reception
The tech community and Wall Street will closely watch Figma’s debut. Analysts expect strong demand for FIG shares, given the company’s growth trajectory and market leadership. If shares price at the upper end of the new $30-$32 range, Figma will raise $1.2 billion and secure a valuation near $18.8 billion, reaffirming its status as a premier design SaaS company.
Investors will evaluate Figma’s IPO not only as a standalone event but also as a barometer for the broader tech IPO market. A successful listing could encourage other high-growth SaaS companies to enter the public markets in 2025.
Looking Ahead: Post-IPO Strategy
Post-IPO, Figma plans to accelerate product innovation, expand global operations, and enhance its ecosystem. The company will likely invest in AI-driven design features, enterprise integrations, and workflow automation to maintain its competitive edge.
Additionally, capital from the IPO provides flexibility for strategic acquisitions or new product launches, allowing Figma to diversify beyond core design tools.
By maintaining independence, Figma retains control of its vision and culture, free from regulatory entanglements that derailed the Adobe deal. The IPO will solidify its position as a standalone SaaS leader in the collaborative design space.
Conclusion
Figma’s decision to raise its IPO price range reflects strong investor confidence and market momentum. The company navigated a failed $20 billion Adobe acquisition, returned to profitability, and proved its ability to grow revenue at a rapid pace.
As it prepares to debut on the NYSE under FIG, Figma stands as a symbol of resilience and innovation in the SaaS industry. By raising $1.2 billion at a valuation of up to $18.8 billion, the company cements its status as one of the most anticipated tech IPOs of 2025.
If Wall Street embraces FIG shares, Figma will enter a new chapter as a public company, ready to shape the future of collaborative design worldwide.
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