Figma, the collaborative design platform co-founded by Dylan Field and Evan Wallace, recently made headlines with its highly anticipated IPO. The company’s shares immediately soared, going from an opening price of $33 to an incredible closing price of $115.50. That extraordinary leap increased its market capitalization to $47 billion on the inaugural day of trading. The achievement of this milestone is the culmination of a labor of love for the founders. It’s an acknowledgement of the creative vision and dogged ambition that have driven Figma’s explosive growth from Day 1.
At only 19 years old, Dylan Field was willing to forgo his studies at Brown University to pursue an entrepreneurial path. That’s when he first encountered Will Griffith, a venture investor at Iconiq. Griffith was new to his position at the time, having only been appointed two months prior. Despite his limited experience, Griffith recognized Field’s potential and formed a partnership that would support Figma’s journey.
Figma had about $332 million in venture capital, with its very first seed shares valued at $0.0878 each. Iconiq had invested at several stages – the seed round, Series A and last year’s round of financing. Griffith noted, “We invested in the seed. We invested in the Series A. We invested further. We did some secondary and we invested more meaningfully a year ago.” This longterm commitment by Iconiq is a strong statement of confidence in Figma’s vision to make design collaboration extremely powerful and frictionless.
Unfortunately, not all investors had the same long-term vision for Figma in its early days. Alexis Ohanian, co-founder of Reddit, famously lamented having missed the opportunity to invest in Figma. It was a long time ago, but he first met the product in 2016. He called it his “embarrassing miss-list.” This unfortunate missed opportunity highlights the burden that rising startups frequently encounter when attempting to draw investment.
On IPO day, Figma was just as thrilled about the fervor surrounding its public debut, and that’s largely how the firm marked the special day. One of the ways that we celebrate is we predict what the closing day stock price will be on the first day. It’s an annual prediction contest on the basis surrounding the firm,” he said. This unique tradition fosters the fiercest camaraderie amongst rival investors. It does a great job portraying both the high stakes and thrilling excitement of going into public markets.
As Figma’s stock soared, Griffith expressed gratitude towards existing investors who decided to sell shares to create liquidity for the IPO. “I think it’s very generous that existing investors are willing to sell as much to create enough supply for this IPO,” he remarked, acknowledging the collaborative effort required for a successful public offering.
Despite the significant financial windfall generated from the IPO, Griffith emphasized that this moment is merely a stepping stone for Figma. “This is just a milestone and not an end,” he asserted, indicating that the company’s journey is far from over. For Griffith and her team, the journey with Figma started back in 2015. For one, he hasn’t sold a single share, which only deepens his strong conviction in the company’s future.
Figma’s founders have all along been driven by a singular willingness to rebel and vision their ecosystem, since their days at Figma. Griffith recalled his initial impression of Field: “I met a young, 19-year-old Dylan, and we forged a partnership.” Figma takes aim at the design establishment. This partnership has been a winning combination as Figma goes on to challenge conventional design workflows with its approachable platform.
Griffith emphasized the passionate community that has sprung up around Figma. Their user conferences have repeatedly wowed thousands of participants. Attendees have been known to sport tattoos of the brand. “You go to one of these user conferences and you’re like, there’s 15,000 people here and 5,000 have Figma tattoos,” he observed, illustrating the deep connection users have with the brand.