Figma's IPO: Strategic Leap After Adobe Deal Collapse

In the ever-evolving world of tech, some companies stand at pivotal crossroads. For Figma, that moment came when its $20 billion acquisition deal with Adobe fell through. What could’ve been one of the biggest software takeovers in history turned into an opportunity for independence, and now, a bold march toward a highly anticipated initial public offering (IPO).

Founded in 2012, Figma is no longer the underdog in the collaborative design space. With a meteoric rise in revenue, global user adoption, major product rollouts, and a growing enterprise footprint, the company is positioning itself not only to go public, but to do so as a symbol of resilience and innovation.

This post unpacks Figma’s IPO journey, its business performance, the aftermath of the failed Adobe deal, and what it all means for investors and the design-tech industry.

Confidential Filing: The First Step Toward a Public Debut

On April 15, 2025, Figma filed a confidential Form S-1 with the U.S. Securities and Exchange Commission (SEC). While this doesn’t guarantee a listing date, it marks the official beginning of the IPO process.

Confidential filings give companies the flexibility to explore a public offering without immediately disclosing sensitive financials. If things look good, they transition to a public filing and roadshow, typically within four to six weeks. However, given the current volatility in tech markets and interest rate sensitivity, Figma might play the long game.. waiting for the right moment to maximize valuation.

What’s worth noting is Figma’s choice of underwriters. Morgan Stanley will lead the IPO process, supported by Goldman Sachs and Allen & Co. This lineup shows the company’s intent to make a major splash once it hits the market.

Revenue Growth: From Modest Startup to $400M Powerhouse

Few companies in the SaaS world show the kind of revenue growth Figma has posted. In just six years, its annual revenue jumped from $4 million in 2018 to $400 million in 2024.

Year-by-Year Revenue Breakdown:

• 2018: $4 million

• 2019: $15 million

• 2020: $40 million

• 2021: $95 million

• 2022: $190 million

• 2024: $400 million

That’s an average growth rate of over 55 percent per year. No wonder investors are lining up.

Equally impressive is Figma’s customer base. The platform serves millions of users globally, with over 85 percent of its customer base outside the United States. Some of its marquee clients include Google, Microsoft, Netflix, Zoom, Airbnb, and Spotify. A mix of tech, media, and enterprise titans that prove Figma is no longer just a designer’s favorite tool; it’s become mission-critical software for teams across departments.

From Acquisition Target to Independent Giant

Figma’s name dominated headlines in 2022 when Adobe announced its intent to acquire the company for $20 billion. The deal raised eyebrows and concerns, both over the price tag and antitrust implications. Regulators in the European Union and the UK eventually blocked the merger, citing competitive risks.

That rejection could’ve been a setback, but Figma turned it into an inflection point. Adobe walked away with a bruised ego and Figma walked away with a $1 billion termination fee, essentially a cash injection that funded new product development and set the stage for its independent growth.

CEO Dylan Field’s response to the breakup was telling: “You either get acquired or you go public.” With the acquisition path closed, Figma doubled down on the latter.

Product Innovation: Targeting More Than Just Designers

The Figma of 2025 is a very different beast from what it was even two years ago. The company has expanded aggressively, launching new tools that move beyond traditional design use cases and appeal to marketing, product, and engineering teams.

Notable 2025 Product Launches:

• Figma Make: A prompt-to-code tool powered by AI that lets users prototype interfaces simply by describing them. Ideal for speeding up early-stage product development.

• Figma Sites: Allows teams to design and launch interactive websites with zero code, making it a direct challenger to platforms like Webflow and Wix.

• Figma Draw: A vector editing and illustration tool aimed at creative professionals and illustrators.

• Figma Buzz: Tailored for marketers and brand teams, this tool streamlines brand asset creation across large-scale campaigns.

AI-Powered Enhancements:

Figma has also integrated AI deeply into its core products. Features include intelligent image generation, auto-layout improvements, contextual design suggestions, and real-time content translation.

The company is serious about going global, too. It launched full localization for Brazilian Portuguese in early 2025, with more markets to follow. Considering that more than half its revenue already comes from international users, this strategy makes perfect sense.

A Closer Look at Figma’s Valuation: What’s It Really Worth?

While Adobe was willing to pay $20 billion in 2022, Figma’s latest private valuation was $17.84 billion in April 2025, up from $12.5 billion less than a year earlier. That jump reflects strong investor confidence driven by product growth and market traction.

Key Valuation Milestones:

• 2021: $10 billion (Series E)

• 2024: $12.5 billion (Tender offer)

• 2025: $17.84 billion (Private market valuation)

Investors fueling this growth include Sequoia Capital, Andreessen Horowitz, General Catalyst, Kleiner Perkins, Alkeon, Coatue, and new players like Thrive Capital and Franklin Venture Partners. The growing presence of crossover funds suggests that big institutional players are positioning themselves for the IPO.

Expanding Into Public Sector and Enterprise

Another under-the-radar development is Figma’s quiet move into the government and public sector space. In March 2025, the company secured FedRAMP Moderate certification, which is required to work with many federal agencies.

Recent Government Wins:

• U.S. National Library of Medicine: $16,500 contract for IT services

• UK Met Office: $85,000 license renewal for design and collaboration tools

While these deals are modest in dollar terms, they signal something much bigger: Figma’s product now meets the security and compliance requirements for large government contracts. This opens the door for bigger opportunities down the line.

IPO Timing and Market Conditions: Is Now the Right Time?

Tech IPOs have had a rocky road over the past couple of years. While the market showed signs of rebounding in early 2025, global instability, shifting interest rates, and regulatory noise have kept many companies on the sidelines.

Still, Figma’s move is being praised as “corporate courage.” According to reports, IPOs are up only 11 percent over 2024, with big names like Chime, Klarna, and StubHub holding back. Figma’s IPO could inject much-needed energy into public markets and possibly reignite the IPO engine for late-stage startups in the design and productivity space.

Final Thoughts: Figma Could Lead the Next Wave of Tech IPOs

Figma’s story is one of evolution. From startup darling to acquisition target to now IPO-ready powerhouse, the company has consistently found ways to grow, adapt, and stay ahead of the curve.

With a robust product portfolio, a growing international footprint, and massive investor confidence, Figma has positioned itself as one of the most exciting IPOs of the year, and possibly a bellwether for a tech IPO rebound.

If successful, this IPO won’t just be a financial win for investors. It will mark a turning point for design technology companies, signaling that innovation and independence can still thrive in a market filled with uncertainty.

Frequently Asked Questions (FAQ)

When will Figma go public?

Figma filed confidentially in April 2025. Based on typical timelines, the IPO could happen by late summer or early fall, depending on SEC review and market conditions.

How much is Figma worth before the IPO?

As of April 2025, Figma’s private market valuation stands at $17.84 billion, up from $12.5 billion in mid-2024.

What happened to the Adobe acquisition of Figma?

Adobe attempted to acquire Figma for $20 billion in 2022, but the deal was canceled in December 2023 due to regulatory concerns in Europe and the UK.

What products does Figma offer besides design tools?

Figma has expanded to include tools for developers (Figma Make), marketers (Figma Buzz), and no-code website creation (Figma Sites), along with AI-powered enhancements and international language support.

Who are Figma's biggest investors?

Sequoia Capital, Andreessen Horowitz, General Catalyst, Kleiner Perkins, Thrive Capital, and Coatue are among Figma’s top backers ahead of its IPO.

Is investing in Figma’s IPO a good idea?

That depends on your risk tolerance and investment goals. Figma shows strong growth and innovation, but IPO investing always comes with volatility. Consult a licensed financial advisor.

Financial Disclaimer

This article is intended for informational purposes only and should not be considered financial or investment advice. Please consult with a licensed financial advisor or conduct your own due diligence before making any investment decisions.