Figma (FIG) files for IPO as tech debuts gain steam

Design software company Figma submitted paperwork for an IPO on Tuesday, with intentions to trade on the New York Stock Exchange under the symbol “FIG.”

The IPO is highly anticipated due to Figma’s rapid growth and significant private market valuation. In late 2023, a planned $20 billion acquisition by Adobe was terminated due to regulatory issues in the U.K., resulting in Adobe paying Figma a $1 billion termination fee.

According to Figma’s prospectus, revenue in the first quarter rose by 46% to $228.2 million from $156.2 million a year prior. The company reported a net income of $44.9 million, compared to $13.5 million in the previous year.

As of March 31, Figma had approximately 450,000 customers, with 1,031 contributing at least $100,000 annually to revenue, marking a 47% increase from the previous year. Clients include Duolingo, Mercado Libre, Netflix, Pentagram, ServiceNow, and Stripe. ServiceNow CEO Bill McDermott has joined Figma’s board, as per the filing. McDermott also serves on Zoom’s board and remains chairman of ServiceNow.

Figma did not disclose the number of shares it intends to offer in the IPO. The company was valued at $12.5 billion in a tender offer last year, and in April, it confidentially filed for an IPO with the SEC.

Following Donald Trump’s victory in the U.S. presidential election in November, Wall Street banks predicted a surge in IPOs after a lull dating back to late 2021. However, President Trump’s announcement of significant tariffs in April disrupted the markets, causing several companies to postpone their plans. Nevertheless, IPO activity has been picking up recently.

Stablecoin issuer Circle saw a significant increase in value during its early June debut and has since grown over sixfold from its IPO price, resulting in a market cap of nearly $43 billion. Online banking company Chime also went public in June, following Hinge Health’s IPO in May. Artificial infrastructure provider CoreWeave, which went public in March, saw a 46% increase in June and has quadrupled since its offering.

UK-based buy now, pay later company Klarna filed for a U.S. IPO in March, along with ticket marketplace StubHub.

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

Prior to founding Figma, Field spent over two years at Brown University, where he met Wallace. Field then participated in the Thiel Fellowship to pursue entrepreneurial ventures,” according to the filing. The Thiel Fellowship, established in 2011 by Founders Fund partner Peter Thiel, provides young entrepreneurs with a $200,000 grant and support from founders and investors, as per an online description.

Field is the largest individual shareholder of Figma, owning 56.6 million Class B shares and 51.1% of voting power ahead of the IPO. In a letter to investors, he expressed that it was time for Figma to depart from the trend of many successful companies remaining private indefinitely.

Companies like Databricks, SpaceX, and Stripe are examples of high-value private companies that have not gone public.

“Some of the clear advantages such as good corporate practices, brand recognition, liquidity, stronger financial position, and access to capital markets apply,” he stated, elucidating the rationale behind the decision. “More importantly, I believe in the idea of our community owning a share of Figma — and the best way to achieve this is through the public markets.”

The IPO will also serve as a much-needed success for Silicon Valley venture capital firms, which are seeking returns after a prolonged period of stagnation. Index Ventures is the largest external shareholder with a 17% stake prior to the offering, according to the filing. Greylock holds 16%, Kleiner Perkins has 14%, and Sequoia possesses an 8.7% stake.

Figma acknowledged facing “fierce competition” and highlighted that a loss of market share could “negatively impact our business,” without specifying any competitors.

More than 13 million individuals use Figma monthly, with only one-third being designers, according to the filing. As of March 31, approximately 85% of monthly users were outside the U.S., yet 53% of revenue was generated internationally.

In March, the company introduced Figma Sites, a tool that converts designs into functional websites. This is one of several new products diversifying the company’s offerings beyond its collaborative service for designing applications and websites.

At the end of March, Figma held $1.54 billion in cash, cash equivalents, and marketable securities.

Field mentioned in the letter that as a public company, investors should anticipate bold moves from Figma, including through acquisitions.

In April, Figma acquired the assets and team of an undisclosed technology company for $14 million and purchased an unnamed company with content management system software for $35.5 million, according to the filing. In April, design software startup Modyfi announced it would be joining Figma, and in June, Figma disclosed in a blog post that it acquired Payload, a content-management software startup backed by Google and MongoDB.

Figma has also started investing in digital currencies. In 2024, Figma’s board sanctioned a $55 million investment into a Bitwise Bitcoin exchange-traded fund. By March 31, the holding was valued at $69.5 million, as per the filing. In May, the board approved a $30 million investment in Bitcoin, utilizing the funds on USD Coin, a stablecoin.

Morgan Stanley and Goldman Sachs are leading the deal, alongside Allen and Co. and JPMorgan Chase.

Correction: A prior version of this story had the incorrect stock exchange in the headline.

— CNBC’s Ari Levy and Jonathan Vanian contributed to this report.

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