On April 15, 2025, Figma, the San Francisco-based collaborative design platform, took a significant step toward going public by confidentially filing a draft Registration Statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC).

This move, announced via a company blog post, signals Figma’s ambition to transition from a private tech darling to a publicly traded company, despite a volatile IPO market rattled by economic uncertainties.

Here’s a deep dive into what this filing means, Figma’s journey, and the broader context shaping its decision.

A New Chapter After the Adobe Saga

Figma’s path to an initial public offering (IPO) comes 16 months after its high-profile $20 billion acquisition deal with Adobe collapsed in December 2023.

The deal, which would have been one of the largest acquisitions of a software startup, faced intense scrutiny from antitrust regulators in Europe and the U.S., ultimately leading to its termination. Adobe paid Figma a $1 billion breakup fee, bolstering the startup’s cash reserves and fueling speculation about its next steps.

As Figma’s co-founder and CEO, Dylan Field, noted in a 2024 interview with The Verge, “There are two paths that venture-funded startups go down. You either get acquired or you go public. And we explored thoroughly the acquisition route.” 

With the Adobe deal off the table and regulatory hurdles making another acquisition unlikely, Figma has set its sights on the public markets.

Figma’s Rise to Prominence

Founded in 2012 by Dylan Field and Evan Wallace, Figma has revolutionized the design industry with its cloud-based, browser-first platform that enables real-time collaboration for designers, developers, and product managers. Its flagship product, Figma Design, alongside offerings like FigJam (an online whiteboard) and Figma Slides (a presentation tool), has attracted a global user base.

Over 85% of its weekly active users are outside the U.S., and more than half of its revenue comes from international markets.

Figma’s financial highlights underscore its strength:

• Valuation: $12.5 billion in a May 2024 tender offer, up 25% from its 2021 valuation of $10 billion but below the $20 billion Adobe offer.

• Revenue: Approximately $600 million in annual recurring revenue (ARR) as of May 2024, with a reported 35% year-over-year growth in 2024.

• User Base: Over 4 million users, with major clients like Adobe, Uber, Spotify, and Google.

• Cash Flow: The company is cash-flow positive, a rarity among tech startups, giving it a strong foundation for its IPO journey.

Figma has also expanded its offerings with AI-powered features and a broader platform for team collaboration, positioning itself as more than just a design tool. Its ability to appeal to non-designers—roughly two-thirds of its customers identify as non-designers, including a third who are software developers—has broadened its market reach.

Navigating a Choppy IPO Market

Figma’s filing comes at a precarious moment for the tech IPO market, which has been largely dormant since late 2021.

The U.S. IPO market saw a resurgence in 2024, with Renaissance Capital reporting a 62.5% increase in U.S. IPOs by April 1, 2025, compared to the prior year.

• However, recent market volatility, driven by tariff-related uncertainty under the Trump administration, has caused several high-profile tech companies to pause or withdraw their IPO plans.

• Fintech giant Klarna, online ticket marketplace StubHub, and digital banking service Chime have all delayed their offerings, while car-sharing service Turo withdrew its prospectus in February 2025.

• Kaidi Gao, a senior VC analyst at PitchBook, noted, “Sentiment for the IPO market is relatively low and has been dampened by heightened market volatility stemming from a lack of policy clarity.” 

Yet, Figma’s decision to file suggests confidence in its fundamentals and strategic timing, potentially capitalizing on expectations of lighter regulations under the current administration.

Why Now? Figma’s Strategic Play

Figma’s IPO filing is both a bold bet and a pragmatic move. Here are the key factors driving its decision:

• Liquidity for Investors and Employees: With the Adobe acquisition off the table, an IPO offers a path to provide liquidity for early investors (including Sequoia, Kleiner Perkins, and Andreessen Horowitz) and employees holding private shares. The 2024 tender offer, which valued Figma at $12.5 billion, allowed some shareholders to cash out, but an IPO would broaden access to liquidity.

• Capitalizing on Brand Strength: Figma’s dominance in the collaborative design space, coupled with its global reach and diverse customer base, positions it as a strong IPO candidate. Its ability to rebound from the Adobe fallout—raising $333 million from top-tier investors and achieving cash-flow-positive status—demonstrates resilience.

• Market Positioning: Going public could enhance Figma’s visibility and credibility, supporting its goal to expand beyond designers. An IPO would also provide capital to fuel further product innovation, such as its AI tools and new offerings like Figma Slides.

• Defying Market Fear: By moving forward despite market turbulence, Figma is signaling corporate courage and betting on its ability to weather economic challenges.