Design software company raises $1.2 billion in largest first-day IPO pop in three decades
Figma Inc. shares jumped 250% in their public debut after the design software maker and some of its shareholders raised $1.2 billion in an IPO, with shares closing at $115.50 each on Thursday, more than tripling the IPO price of $33 apiece.
The trading gives Figma the largest first-day pop in at least three decades for a US-traded company raising more than $1 billion, data compiled by Bloomberg show.
The San Francisco-based company began trading on the New York Stock Exchange under ticker symbol “FIG” on Thursday morning, opening at $85 per share and hitting an intraday high of $124.63. Investor demand for Figma proved to be incredibly strong, with shares reportedly oversubscribed by more than 30 times.
From Failed Acquisition to IPO Success
The spectacular debut marks a dramatic turnaround for Figma, which Adobe agreed to buy for $20 billion in 2022 but gave up after U.K. regulators said the deal probably would have harmed design software innovation. The collaborative design platform’s current market capitalization of approximately $47 billion now far exceeds what it would have received in the abandoned Adobe deal.
“This is a bellwether event for the tech sector,” said Derek Hernandez, senior analyst for emerging technology at PitchBook. The company’s strong financial performance has attracted significant investor interest, with Figma generating $749 million in revenue in 2024, up 48% year-over-year, and reporting net income of $44.9 million in the first quarter of 2025.
AI-Driven Growth Strategy
Figma’s success comes as design software firms race to integrate artificial intelligence tools. The company has positioned itself at the forefront of AI-powered design automation, competing with industry giants like Adobe and Microsoft.
“If this company didn’t have an AI strategy, it would not be seeing this level of demand,” said Matt Kennedy, senior strategist at Renaissance Capital. The firm noted that more than 1,000 clients were paying Figma upward of $100,000 annually as of March 31, with customers including Google, Microsoft, Netflix and Uber.
Market Recovery Signal
The IPO signals broader recovery in the tech listing market, with 123 IPOs priced this year through July 31, representing a 48% increase from the prior year. Other successful 2025 tech debuts include online bank Chime, stablecoin issuer Circle and AI infrastructure provider CoreWeave.
“Fast-growing software IPOs have been extremely rare during the past three years, so deals like this tend to get a lot of attention,” Kennedy added. “Because of this three-year bottleneck, tech IPO investors have been starved for new deals.”
Investor Windfall
Figma’s top shareholders include Index Ventures (16.8% pre-IPO stake), Greylock (15.7%), Kleiner Perkins (14%), and Sequoia Capital (8.7%). These early investors are now sitting on substantial returns, with Sequoia Capital’s initial investment at $1.10 per share during the company’s Series C round now worth approximately $33 per share at the IPO price.
Morgan Stanley, Goldman Sachs & Co. LLC, Allen & Company LLC, and J.P. Morgan served as joint lead book-running managers for the offering.
The company expects to close the offering on August 1, subject to customary closing conditions. With its successful debut, Figma joins the ranks of major software companies and sets the stage for other high-growth tech firms considering public listings in the second half of 2025.
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