Figma’s shares surged 250% on their first day of trading at the New York Stock Exchange (NYSE) on July 31, 2025.

The spike gave the design software company a market capitalization of nearly US$68 billion.

Figma provides cloud-based design and collaboration software for teams.

The offering raised US$1.2 billion, with about two-thirds of the proceeds going to existing investors.

Most outstanding shares are under a 180-day lock-up.

The company’s largest outside investors, Index Ventures, Greylock, Kleiner Perkins, and Sequoia, are collectively holding around US$24 billion in Figma shares after the IPO.

The IPO is seen as a positive signal for venture-backed exits, following a period of slow tech IPO activity since 2021.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Failed acquisitions can create unexpected windfalls for shareholders

Figma’s blocked Adobe acquisition demonstrates how regulatory intervention can sometimes benefit shareholders more than the original deal.

Adobe’s proposed $20 billion acquisition in 2022 would have paid shareholders significantly less than the current market valuation of nearly $68 billion1.

The U.K. regulators’ competition concerns effectively saved Figma shareholders from accepting a deal worth roughly 70% less than today’s market price.

This differs from typical failed acquisition scenarios, where target companies often see their stock prices decline after deals collapse.

Figma used the additional time to strengthen its business fundamentals, achieving 50% year-over-year revenue growth and posting its first profitable quarter in Q1 20252.

The company’s revenue reached $749 million in 2024, with a strong Rule of 40 score of 63 and a net retention rate of 132%, metrics that likely supported the higher public valuation3.

Recent Figma developments