Top Line
Figma, a design software company, saw its stock price soar over 250% on Thursday, reaching $117 per share after securing more than $1.2 billion through its IPO. Just earlier this week, the 33-year-old CEO, Dylan Field, became a billionaire.
Important facts
- Figma’s stock opened at $85, quickly rising to $112 per share during the day.
- While U.S. and U.K. antitrust regulators previously blocked Adobe’s $20 million acquisition bid in 2023, Figma’s market value now stands at $50 billion, surpassing Adobe’s valuation.
- The IPO proceeds contributed significantly to the company’s valuation, making Field and recent graduates involved with Figma collectively worth at least $1.8 billion.
- Investors, including Index Ventures, Greylock, Kleiner Perkins, and Sequoia Capital, sold part of their shares during the IPO.
Important background
Figma was founded by Field and Brown University classmate Evan Wallace during their time as Thiel Fellows. They launched a closed beta of the software in 2015. UK regulators have turned down Adobe’s attempts to purchase Figma, citing concerns over competition in the design software market.
Tangent
The successful launch of Figma is one of the more significant IPOs in recent times, as analysts noted a slight revival in the market for initial public offerings. According to an analyst, the prolonged downturn was likely due to high interest rates, yet this year has already seen successful tech IPOs, like the impressive debut of AI startup CoreWeave in March.
Amazing facts
Field and his co-founder Wallace, who departed in 2021, still control 99% of Class B shares, which offer 15 times the voting rights compared to Class A. This arrangement allows them to maintain around 74% voting power in the company.
