Enterprise design startup Figma, founded in 2012 by Dylan Field and Evan Wallace, offers an alternative. Now, it’s preparing to go public with an expected IPO to raise around $1 billion. As a result, it has garnered a tremendous amount of buzz in the tech community. To date, it has raised over $740 million in venture capital from notable investors such as Andreessen Horowitz, General Catalyst and Sequoia Capital.
For those interested, the IPO will be providing over 36 million shares of Class A stock. Some experts are predicting the price will be between $25 and $28 per share. If the shares reach the average of this range, Figma would have a market valuation of about $15.9 billion. This valuation puts the company at a major high point. That number represents a huge leap from the company’s last private valuation of $12.5 billion. It’s still a far cry from the $20 billion acquisition bid Adobe made, which Figma rejected.
Figma’s unique place in the existing design software ecosystem has allowed it to grow quickly and organically, especially with enterprise users. The company plans to use proceeds from its newly-public status to fortify its financials and continue adding to its existing suite of products. The IPO will have primary shares which will raise capital directly for the company. It will include secondary shares from existing investors.
Dylan Field, Figma’s CEO, struck an optimistic chord about the company’s new potential—as a wholly owned subsidiary of Adobe—at recent industry gatherings. Figma today With the upcoming IPO being accomplished by Figma, it’ll be a big accomplishment for the money. As it moves from a private company to a public entity, investors will have an opportunity to join the infrastructure’s growth story.