Cloud-based design platform Figma confidentially filed for an initial public offering (IPO) in the United States, as reported by Reuters on April 15, 2025.

The filing comes more than a year after the collapse of a proposed US$20 billion acquisition by Adobe, which was blocked by antitrust regulators in Europe and the United Kingdom in December 2023.

This prevented what would have been one of the largest software startup acquisitions to date. This regulatory pushback positioned Figma for a potential public listing.

The US IPO market has seen volatility recently, with many companies delaying public listings amid market uncertainty.

However, Figma’s confidential filing suggests its intent to proceed despite these challenges.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Figma’s journey illustrates the power of product-led growth in design software

Figma’s path to IPO demonstrates how collaborative tools can capture market share by focusing on user experience before aggressive monetization.

The company spent years developing its browser-based design platform, raising $200 million in 2021 at a $10 billion valuation after initially facing skepticism from venture capitalists about the viability of WebGL technology for professional design 1.

Their tiered pricing model, starting with a free version and adding a “Pro” tier in 2017 and an “Org” tier in 2019, allowed them to build a massive user base (with 80% of users outside the US) before optimizing for revenue 2.

This patient approach yielded results, with annual recurring revenue projected to exceed $75 million in 2020 and expectations to double in 2021, proving that vertical integration in design tools could create substantial enterprise value 1.

Figma’s data-driven culture, emphasizing rigorous funnel analysis and experimentation, contributed to efficient user acquisition and growth despite competing against established players like Adobe 2.

2️⃣ Failed acquisitions can create unexpected paths to public markets

Figma’s IPO filing comes directly in the wake of its terminated $20 billion acquisition by Adobe, illustrating how regulatory intervention can redirect company trajectories.

The December 2023 termination due to opposition from European and UK regulators resulted in a substantial $1 billion breakup fee paid to Figma, significantly strengthening its financial position for an independent future 3.