Dylan Subject, co-founder and CEO of Figma, seems on the Bloomberg Expertise Summit in San Francisco on Could 9, 2024.
David Paul Morris | Bloomberg | Getty Photos
Design software program firm Figma filed for an IPO on Tuesday, and plans to commerce on the New York Inventory Alternate underneath the ticker image “FIG.”
The providing could be one of many hotly anticipated IPOs in recent times given Figma’s development charge and its excessive non-public market valuation. In late 2023, a $20 billion acquisition settlement with Adobe was scrapped on account of regulatory considerations within the U.Okay. That led Adobe to pay Figma a $1 billion termination price.
Income within the first quarter elevated 46% to $228.2 million from $156.2 million in the identical interval a yr in the past, in response to Figma’s prospectus. The corporate recorded a web revenue of $44.9 million, in comparison with $13.5 million a yr earlier.
As of March 31, Figma had round 450,000 prospects. Of these, 1,031 had been contributing no less than $100,000 a yr to annual income, up 47% from a yr earlier. Shoppers embody Duolingo, Mercado Libre, Netflix, Pentagram, ServiceNow and Stripe. ServiceNow CEO Invoice McDermott has taken a seat on Figma’s board, in response to the submitting. He additionally sits on Zoom’s board and continues to function ServiceNow’s chairman.
Figma did not say what number of shares it plans to promote within the IPO. The corporate was valued at $12.5 billion in a tender supply final yr, and in April it introduced that it had confidentially filed for an IPO with the SEC.
Wall Avenue banks predicted a rush of IPOs after Donald Trump gained the U.S. presidential election in November following a dry spell relationship again to late 2021, when hovering inflation and rising rates of interest pushed buyers out of dangerous property. Whereas President Trump’s announcement of sweeping tariffs in April roiled markets and led various firms to delay their plans, exercise has been choosing up of late.
Stablecoin issuer Circle doubled in worth in its early June debut and is now up greater than sixfold from its IPO worth for a market cap of just about $43 billion. On-line banking firm Chime additionally debuted in June, following Hinge Well being’s IPO in Could. Synthetic infrastructure supplier CoreWeave, which went public in March, jumped 46% in June and has quadrupled since its providing.
Purchase now, pay later firm Klarna, based mostly within the U.Okay., filed for a U.S. IPO in March, as did ticket market StubHub.
Figma was based in 2012 by CEO Dylan Subject, 33, and Evan Wallace, and relies in San Francisco. The corporate had 1,646 workers as of March 31.
Earlier than establishing Figma, Subject spent over two years at Brown College, the place he met Wallace. Subject then took a Thiel Fellowship “to pursue entrepreneurial tasks,” in response to the submitting. The 2-year program that Founders Fund accomplice Peter Thiel established in 2011 provides younger entrepreneurs a $200,000 grant together with assist from founders and buyers, in response to an on-line description.
Subject is the most important particular person proprietor of Figma, with 56.6 million Class B shares and 51.1% of voting energy forward of the IPO. He mentioned in a letter to buyers that it was time for Figma to buck the “pattern of many superb firms staying privately indefinitely.”
Databricks, SpaceX and Stripe are amongst high-valued firms which can be nonetheless non-public.
“Among the apparent advantages such nearly as good company hygiene, model consciousness, liquidity, stronger foreign money and entry to capital markets apply,” he wrote, explaining the choice. “Extra importantly, I like the concept of our neighborhood sharing within the possession of Figma — and the easiest way to perform that is by public markets.”
The IPO will even mark one other much-needed win for Silicon Valley enterprise corporations, that are in want of returns after the multi-year stoop. Index Ventures is the biggest exterior shareholder, with a 17% stake earlier than the providing, in response to the submitting. Greylock owns 16%, Kleiner Perkins controls 14% and Sequoia has a stake of 8.7%.
Figma mentioned it faces “intense competitors” and that lack of market share would “adversely have an effect on our enterprise,” however did not title any particular opponents.
Over 13 million folks use Figma monthly, and solely one-third of them are designers, in response to the submitting. Round 85% of month-to-month customers had been exterior the U.S. as of March 31, however 53% of income got here from exterior the nation.
In March the corporate introduced Figma Websites, a instrument that turns designs into working web sites. It is one of some new merchandise that diversify the corporate away from its collaborative service for crafting app and web site designs.
Figma had $1.54 billion in money, money equivalents and marketable securities on the finish of March.
Subject mentioned within the letter that as a public firm, buyers ought to “anticipate us to take massive swings,” together with by acquisitions.
In April Figma purchased the property and crew of an unspecified expertise firm for $14 million and purchased purchased an unnamed firm with content material administration system software program for $35.5 million, in response to the submitting. In April design software program startup Modyfi mentioned it might be becoming a member of Figma, and in June Figma revealed in a weblog put up that it acquired Payload, a content-management software program startup with backed by Google and MongoDB.
Figma has additionally begun investing in digital currencies. In 2024, Figma’s board approved a $55 million funding right into a Bitwise Bitcoin exchange-traded fund. As of March 31, the holding was value $69.5 million, in response to the submitting. In Could, the board accepted a $30 million funding in Bitcoin, and Figma spent the cash on USD Coin, which is a stablecoin.
Morgan Stanley and Goldman Sachs are main the deal together with Allen and Co. and JPMorgan Chase.
Correction: A previous model of this story had the wrong inventory alternate within the headline.
— CNBC’s Ari Levy and Jonathan Vanian contributed to this report.
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