Figma IPO Set to Energize Tech Market with $16.4 Billion Target Valuation

Figma, a well-known design software firm, is preparing to go public with a target valuation of $16.4 billion. This move is grabbing attention because it’s one of the biggest tech listings of the year. After a slowdown in IPO activity during 2023 and 2024, tech listings are gaining momentum again, and Figma could be at the forefront of this revival.

We use Figma for more than just pretty graphics. It’s a favorite tool for design teams working together online in real time. Since launching in 2016, it has changed how designers and developers work. Now, the company is ready to grow even more, using public funding to push into AI, enterprise features, and maybe even crypto.

Why does this matter to us? Because Figma’s IPO could be a signal. A sign that the tech world is heating up again. It shows that investors still believe in creative tools, in software that connects people, and in platforms built for the future of work. We’ll study the full story, how Figma got here, what this IPO means, and why it could shift the direction of the entire tech market.

Background on Figma

Figma is widely recognized as a leading platform for collaborative design work. Dylan Field and Evan Wallace founded the company in 2012 during their time as students at Brown University. Its first public launch happened in 2016. Since then, it has added features like FigJam, Dev Mode, Figma Sites, and AI tools like Figma Make and Figma Buzz. Figma’s approach focuses on real-time teamwork. That has made it a favorite among design teams worldwide.

IPO Details

Figma filed its S-1 registration with the SEC at the beginning of July. It gave full details on the IPO. We’ll offer close to 37 million shares, split between 12.5 million primary (to raise money for the company) and 24.5 million secondary (for insiders).

The anticipated price per share falls between $25 and $28. This results in a base value of $13.6 billion, with a fully diluted maximum reaching $16.4 billion. Big names like Morgan Stanley, Goldman Sachs, Allen & Co., and JPMorgan are leading the deal. Trading under ticker “FIG” will start during the week of July 28.

CEO Dylan Field plans to sell 2.35 million shares, estimated to be valued between $60 and $62 million based on the midpoint price. Other early investors, such as Sequoia, Greylock, Kleiner Perkins, and Index Ventures, will also sell secondary shares. Field will still hold 74% of the voting power through Class B shares that carry extra voting rights. That move helps maintain his control over the company.

Financial & Operational Highlights

Figma is growing fast. In Q1 2025, revenues hit $228 million, up 46 % year-over-year, and net income jumped to $45 million, which is three times higher than last year.
In 2024, it generated $749 million in revenue but took a $732 million tax-related loss. Still, its full-year run rate is strong.
The platform serves top clients like ServiceNow, Workday, SAP, and boasts 13 million monthly users.

Strategic Positioning

We see Figma leaning heavy into AI. It launched new tools at Config 2025 like Figma Make, driving prototyping and code through AI.
It is also open to big mergers, according to CEO Field. This shows they want to scale cleverly, blending tech and design leadership.

Bitcoin & Web3 Angle

Figma currently owns $70 million in a Bitcoin ETF and intends to invest another $30 million soon. It even bought $30 million in USDC stablecoins to convert later.
This bet on crypto aligns with investors and suggests Figma is ready to embrace Web3 tools.

Market Context & Comparisons

Figma’s public offering follows recent successful tech listings like Circle, CoreWeave, and Chime. Although targeting a $16.4 billion valuation, it’s still below Adobe’s failed $20 billion buyout effort. It now ranks among the largest tech IPOs of 2025, showing renewed investor confidence in AI, SaaS, and design.

Risks & Challenges

We must note some risks. Design tools using AI from companies like Adobe and Canva offer strong competition. Tighter visa rules may slow hiring. With most of its revenue from outside the US, Figma is also exposed to global slowdowns and trade issues.
Lastly, its Bitcoin holdings could add crypto volatility to its playbook.

Investor Outlook & Implications

The IPO is expected to generate about $1 billion in new funding. We can expect this to fund AI development, new acquisitions, and global growth.
Investors backing Figma are looking at a mix of collaboration tools, AI innovation, and crypto exposure, a forward-looking strategy.
Future watchers should look at Figma’s AI adoption, its enterprise client expansion, and how it manages its crypto holdings.

Conclusion

We believe Figma’s IPO marks a turning point. It’s not just a stock offering, it’s a statement that hybrid tech models can thrive. Figma balances innovation with discipline. The challenge: delivering results while navigating competition and global risks. For those of us following the tech world, Figma’s stock market debut might mark the start of a fresh wave of IPOs focused on AI, SaaS, and blockchain.

FAQS:

Is Figma going to the IPO?

Yes, Figma filed for its IPO in early July. The company plans to sell nearly 37 million shares and will trade on the NYSE under the ticker “FIG.”

What is Figma Inc.?

Figma Inc. It is a business that develops design software hosted on the cloud. Teams use it to design, prototype, and collaborate in real time.

Can you buy Figma stock?

Not yet. Figma is still private. After the IPO, anyone with a brokerage account can buy shares under the symbol “FIG.”

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This content is for informational purposes only and not financial advice. Always conduct your research.