San Francisco-based startup Figma, known for its application design and collaboration software, has confidentially filed for an initial public offering (IPO) in the U.S. This move comes over a year after its merger with Adobe, the developer of popular creative software like Photoshop and Illustrator, was canceled. Figma announced its IPO filing with the U.S. Securities and Exchange Commission (SEC) in a blog post. In 2024, the company was valued at approximately $12.5 billion during a funding round.
Figma's IPO could reignite global interest in the U.S. IPO market, potentially sparking renewed investment in tech stocks like Microsoft, Google, and Nvidia. The current U.S. IPO market has been sluggish due to global trade policies. Other tech companies like Klarna, Chime, Cerebras Systems, and eToro have paused their IPO plans.
Despite regulatory hurdles, Figma has continued to grow, enhancing its products for software engineers and designers. The company introduced "Dev Mode" to facilitate collaboration between developers and designers. Figma's workforce has expanded from 500 to 1,600 employees since early 2022.
Figma's suite of tools, including Figma Design, FigJam, Dev Mode, and Figma Slides, supports real-time collaboration and cloud-based platforms, offering a competitive edge in the design tool market. The company serves over 4 million users, including major tech firms like Microsoft, X, Dropbox, Stripe, Slack, and GitHub. By June 2024, Figma's annual recurring revenue (ARR) reached $700 million, marking a 35% year-over-year growth.
