Figma’s Dylan Field Set to Cash Out Over $62 Million in Upcoming IPO

Dylan Field, CEO of Figma, stands to gain significantly from the company’s impending initial public offering (IPO), where he is projected to cash out more than $62 million. Despite this, Field will still have more than the majority control of the company post IPO. That, combined with the control shares, will give him 74% of…

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Figma’s Dylan Field Set to Cash Out Over $62 Million in Upcoming IPO

Dylan Field, CEO of Figma, stands to gain significantly from the company’s impending initial public offering (IPO), where he is projected to cash out more than $62 million. Despite this, Field will still have more than the majority control of the company post IPO. That, combined with the control shares, will give him 74% of the voting rights. This opens the door for him to have an enormous say in the long-term direction that Figma takes.

The firm expects to sell roughly 12.5 million shares as it makes its debut on the public markets. Field’s ownership includes supervoting rights, giving him 15 votes per share for the Class B stock he controls. Most strikingly of all, he will have the power to cast the Class B shares held by his co-founder, Evan Wallace. This setup is designed to flex Field’s lasting power over corporate choices. Even when Figma finally goes public, he’ll still have a ton of sway.

At the midrange estimate of the IPO, Field’s cash-out is projected to be more than $62 million. This figure is informed by consideration of his direct shareholdings and the overall context of the share offer. Current shareholders, on the other hand, will get a chance to exit from almost 24.7 million shares. IPO framework enables the existing shareholders to sell one extra round of total 5.5 million shares collectively. This route is only available if the IPO is successful.

Figma will not receive any monetary proceeds from the shares its existing stockholders elect to sell in connection with this process. This is a big, important caveat to remember though. The company’s existing investors have agreed to an over-allotment option. If demand is very strong, they will be able to sell the other 5.5 million shares. Under this provision, shareholders would be able to cash out between 1.7 million and 3.3 million shares apiece. The final amount is to be determined by interest on the market.

Field’s leadership and the structure of the IPO showcase a careful balancing act between ensuring substantial liquidity for existing investors and maintaining control over Figma’s strategic direction. As the public offering draws near, market analysts will be watching closely to see what the investor appetite is for Figma’s shares.