Figma Inc., a design software company, has reportedly hired Morgan Stanley to lead its upcoming initial public offering (IPO).

Goldman Sachs is also expected to participate in the process, according to sources familiar with the situation.

The company filed for an IPO confidentially in April and could go public later this year. However, the exact timing is still uncertain.

If the IPO occurs this year, it could significantly impact the US IPO market, which has raised approximately US$19 billion in 2025.

Representatives from Figma, Morgan Stanley, and Goldman Sachs declined to comment on the matter.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Failed acquisitions are becoming tech’s billion-dollar buffer against market uncertainty

Figma’s rapid pivot to IPO planning after Adobe’s US$20 billion acquisition collapsed demonstrates how large breakup fees are creating financial safety nets for high-growth tech companies.

When regulators blocked the Adobe deal in December 2023, Figma received a US$1 billion breakup fee while retaining its independence, effectively creating a substantial cash buffer that strengthens its balance sheet heading into public markets 1.

This pattern extends beyond Figma. In 2022, Nvidia paid Arm a US$1.25 billion breakup fee when their US$40 billion merger failed due to regulatory challenges, similarly providing Arm with capital that helped fuel its successful 2023 IPO.

Despite Figma resetting its internal valuation to US$10 billion after the Adobe deal collapse (down from the US$20 billion acquisition price), the company’s financial position remains strong, having not utilized a significant portion of its US$290 million venture funding even before receiving the breakup fee 1.

The substantial cash reserves from both fundraising and the breakup fee give Figma significant runway and flexibility as it navigates the public offering process, potentially making it less dependent on immediate market conditions.

2️⃣ Enterprise software companies with strong ARR remain prime IPO candidates despite market volatility

Figma exemplifies the type of company attracting investor attention in today’s cautious IPO market: enterprise software with proven recurring revenue and market leadership.

The company’s annual recurring revenue growth has been exceptional, with Adobe noting during acquisition talks that Figma would add US$200 million in ARR, representing a significant portion of its business 2.