Figma Goes Public: Everything You Need to Know About the FIG IPO

It’s official. Figma, the widely loved cloud-based collaborative design tool, has filed to go public. With this S-1 filing, the company is setting the stage for one of the most anticipated tech IPOs of the year. This move comes after years of rapid user growth, funding rounds, and buzzworthy product releases. It's the kind of public debut that turns heads on both Wall Street and in the startup trenches.

In this article, we’ll walk through the details of Figma's IPO filing. We’ll look at share allocations, pricing strategy, leadership control, what this means for Figma users, and what risks potential investors should be aware of. Whether you're a seasoned investor, a Figma superfan, or just IPO-curious, there's something in here for you.

Figma’s IPO by the Numbers

Let’s get into the meat of the filing. Figma’s IPO includes a mix of company-issued shares and shares from existing stockholders looking to cash out part of their holdings.

Here’s how the numbers break down:

• Shares offered by Figma: 12,472,657

• Shares offered by selling stockholders: 24,464,423

• Total shares offered: 36,937,080

• Expected IPO price per share: $30.00 to $32.00

• Ticker symbol: FIG

• Listing venue: New York Stock Exchange (NYSE)

If priced at the high end of that range, the IPO could raise nearly $1.18 billion in gross proceeds. It's a hefty amount, giving Figma plenty of capital to invest in R&D, customer acquisition, and global expansion. And let's not forget the liquidity it provides for early employees and investors who’ve been holding on since the early days.

Understanding the Share Structure

Now here’s where things get a bit technical. Like many other tech IPOs, Figma is launching with a multi-class share structure to retain tight control at the executive level.

The three classes of stock are:

• Class A: One vote per share - this is what public investors will be buying.

• Class B: Fifteen votes per share - reserved for insiders like Dylan Field, with built-in conversion rights to Class A.

• Class C: No voting rights - convertible to Class A under certain conditions.

This setup allows the company to bring in outside capital without giving up control. In particular, Dylan Field, Figma's co-founder and CEO, will maintain the reins through Class B shares.

According to the filing, Field will control approximately 73.6% of the total voting power post-IPO. This essentially makes him a one-man boardroom when it comes to major decisions, even though the public will own a large chunk of equity.

This structure has become increasingly common in Silicon Valley, especially among companies that are product-driven or founder-led. But it's worth understanding that it creates a founder-favoring dynamic where public shareholders may have limited influence.

Why Figma Is Going Public Now

The timing of this IPO is no accident. After a few rough years for public tech stocks, market optimism is gradually returning. Several software and AI companies are gearing up for IPOs in 2025, and Figma is riding that momentum.

Here are a few possible reasons for the timing:

1. Favorable Market Conditions: Investor appetite for high-growth SaaS businesses is picking back up. Figma’s growth metrics and user base fit the profile perfectly.

2. Failed Adobe Acquisition: Adobe’s attempted $20 billion acquisition of Figma was blocked by regulatory hurdles. The IPO may be Plan B for delivering returns to shareholders.

3. Liquidity for Insiders: With over a decade of growth under its belt, there’s pressure to offer liquidity to early backers and employees.

4. Capital for Expansion: The proceeds will likely fund international expansion, advanced AI integration, and new verticals like enterprise workflow management.

By going public, Figma gets not only the funds but also the brand validation that comes from being listed on the NYSE.

A Look at Figma’s Financials

While the full financial breakdown is detailed in the S-1/A filing, Figma’s revenue trajectory reflects that of a fast-scaling SaaS company. Reports indicate annual revenue exceeding $400 million, with strong double-digit year-over-year growth. However, like many tech darlings, Figma is still operating at a net loss, primarily due to aggressive investments in product development, infrastructure, and global hiring. The company has signaled that profitability isn’t its short-term goal. Instead, it’s prioritizing market share, user adoption, and expanding into new enterprise segments.

This approach isn’t uncommon in the software world, but it does require investors to buy into the vision of long-term gains over immediate earnings. The IPO will offer the company a large capital infusion to reduce dependency on private equity and continue its growth trajectory, potentially without the pressure to slash costs or slow innovation.

Key Investors and Strategic Relationships

Figma’s cap table is packed with big names in tech investing. Notable investors include Andreessen Horowitz (a16z), Index Ventures, Greylock Partners, and Sequoia Capital, all of which backed the company during its earlier funding rounds. Their continued support not only validates the business model but also adds credibility as Figma enters the public sphere.

In addition to VC backing, Figma has built strong partnerships with major tech players. Its integrations with tools like Slack, GitHub, and Notion make it a central hub for product teams. Figma is also deeply embedded in the workflows of enterprise clients, including companies like Microsoft, Zoom, and Airbnb, who rely on its collaborative design capabilities for cross-functional product development. These relationships position Figma as more than a design tool, it’s becoming part of the connective tissue that powers modern product teams.

What the IPO Means for Users

Designers, developers, and product teams who use Figma daily might be wondering how the IPO will affect their experience.

In the short term, nothing is likely to change. Figma’s product roadmap, support system, and pricing plans will probably stay consistent. But longer term, public companies face shareholder pressure to generate returns, which could lead to:

• Increased pricing tiers or enterprise-only features

• Changes in free-tier access or limitations

• Shift in product focus toward profitability and business use cases

Many in the design community love Figma for its simplicity, accessibility, and collaboration-first mindset. As the company grows up on the public stage, it’ll need to find ways to balance user delight with investor demands.

Competitive Landscape

Figma isn’t entering the public market in a vacuum. It’s part of a much larger shift in design, development, and collaboration software. Its competitors include:

• Adobe XD: Adobe’s own UX/UI tool, which has taken a back seat recently as Adobe tried (and failed) to acquire Figma.

• Sketch: Once the go-to for Mac users, now losing market share.

• Canva: More geared toward non-designers, but expanding into collaborative editing.

Figma’s biggest advantage remains its real-time, browser-based collaboration. It was the first to crack the “Google Docs for design” model, and its community-driven ecosystem keeps users engaged.

Still, to keep up its momentum, Figma will need to innovate rapidly, which makes the IPO funds all the more important.

Potential Risks for Investors

No investment is without risk, and tech IPOs are particularly tricky. Here are some of the key concerns:

• Profitability Concerns: Figma is investing heavily in growth, and its path to sustained profitability remains unclear.

• Valuation Pressure: A high valuation at IPO can backfire if the market cools down.

• Product Dependence: The company still relies on a relatively narrow product suite. Any missteps in innovation could slow growth.

• Leadership Concentration: Dylan Field’s dominant voting power could deter investors who prefer checks and balances in corporate governance.

For long-term investors, the bet here is on Figma's ability to continue expanding its product suite and defending its market position.

Wrapping It Up

Figma’s IPO is more than just a financial event. It marks a shift in the company’s evolution from startup darling to public software powerhouse. With its product already embedded in the workflows of thousands of teams, and a strong community behind it, Figma is poised to become one of the defining tech stories of the year.

But the road ahead isn’t without bumps. The multi-class share structure, high valuation, and competitive market all pose real challenges. For designers, investors, and tech enthusiasts alike, the journey of “FIG” on the NYSE will be one to watch closely.

FAQs

What is Figma’s business model?

Figma operates a freemium SaaS model. Teams and individuals can use a free version, while organizations pay for advanced features, user seats, and support.

How much revenue is Figma generating?

While specific revenue numbers weren’t detailed in the excerpt of the S-1/A, previous reports have estimated Figma’s annual revenue to exceed $400 million, with strong year-over-year growth.

Why is the IPO important if Adobe tried to buy Figma?

Adobe’s $20 billion acquisition offer was blocked by regulators. An IPO gives Figma an alternative route to capitalize and expand without being absorbed.

How will Dylan Field's control affect corporate decisions?

With nearly 74% of the voting power, Field will have significant influence over company direction, board composition, and any potential acquisitions or leadership changes.

Can Figma’s stock be included in ETFs or index funds?

Yes. Once listed on the NYSE, Figma shares can be included in funds that track large-cap or tech-focused indexes, depending on their criteria.

Is this a good time to invest in Figma?

That depends on your investment goals, risk tolerance, and belief in Figma’s long-term growth potential. As with any IPO, consider doing your own research or speaking with a financial advisor.

Financial Disclaimer

The information in this article is for general informational purposes only. It does not constitute financial, investment, or legal advice. Any investment in securities, including initial public offerings (IPOs), involves risk. Always consult with a licensed financial advisor before making investment decisions, and do your own due diligence when evaluating any opportunity.