The cloud-based design platform Figma has quietly filed for a U.S. IPO, setting the stage for one of the most closely watched tech listings since the market cooled off in late 2021.
The move comes more than a year after Adobe’s $20 billion bid to acquire Figma collapsed under pressure from European and UK regulators. The deal would have been one of the largest ever for a software startup, but watchdogs weren’t having it, citing concerns over competition in the digital design space.
Since the high-profile breakup, Figma hasn’t faded into the background. The company, founded by Dylan Field in 2012, pulled in a $12.5 billion valuation last year in a secondary share sale and now counts major names like Google, Uber, Spotify, and ironically, Adobe, among its users.
While Figma’s confidential filing may stir hopes of a revived IPO market, it comes at a time when others are slamming the brakes. Klarna, StubHub, and Chime have all hit pause on their listings, worried by the recent tariff-induced market tremors following Donald Trump’s policy announcements.
“Sentiment for the IPO market is relatively low and has been dampened by heightened market volatility stemming from a lack of policy clarity. Over the past few months, we saw a string of tech startups filing to go public, but many subsequently put their IPO plan on hold,” said Kaidi Gao, senior VC analyst at PitchBook.
Still, Figma appears ready to buck the trend. The company is cash-flow positive, has expanded its collaborative design tools with AI-powered features, and reportedly hit $600 million in annual revenue as of early 2024. Backers include Andreessen Horowitz, Sequoia Capital, and Kleiner Perkins.