What are Figma IPOs? How it works and whether you should buy it
What are Figma IPOs? Simply put, a Figma IPO refers to the process by which Figma Inc., a collaborative web-based design software company, made its shares publicly available on the stock market for the first time.
In mid-2025, Figma launched its initial public offering (IPO), creating significant buzz across the tech and investment communities.
The company raised over $1.2 billion and saw its valuation skyrocket from around $20 billion to nearly $70 billion in just one trading session.
After a failed $20 billion acquisition deal with Adobe in 2023, Figma continued to grow independently, solidifying its position as a leader in real-time, cloud-based design tools.
This IPO not only marked a financial milestone but also represented a shift in how modern tech companies grow and transition into the public markets.
What are Figma IPOs and Why Are They So Important? 📊
The reason what are Figma IPOs is a trending question lies in the scale and impact of the company’s public debut. Figma’s IPO was the largest U.S.-based, venture-capital-backed tech IPO since Rivian in 2021.
With software solutions used by over 95% of Fortune 500 companies and 13 million monthly active users, Figma entered the stock market with strong fundamentals. Here’s why the Figma IPO matters:
- Market Timing: Figma went public during a period of relative market calm, where investors were cautiously optimistic about tech stocks rebounding.
- Investor Confidence: The IPO was oversubscribed more than 30 times, reflecting strong institutional and retail investor interest.
- Innovation-Driven Growth: Figma’s tools support real-time collaboration, a key driver in remote and hybrid work environments.
What are Figma IPOs Doing Differently Than Other Tech Giants? 🔎
One of the most interesting aspects of Figma IPOs is how the company approached its IPO differently than others in the tech space.
Most companies wait until they are highly profitable or rely heavily on forward projections. Figma, however, already had strong financials and steady revenue growth.
Key differences:
- Profitable Growth: Unlike many tech IPOs, Figma had reported profits prior to going public, with $44.9 million in net income in the first quarter of 2025.
- Massive Demand from VCs and Institutions: Top firms like Sequoia Capital, Index Ventures, and Greylock saw their early investments multiply rapidly.
- Brand Trust: Figma has positioned itself as a “Google Docs for design,” making it indispensable for designers, developers, and marketers worldwide.
What are Figma IPOs Offering to Investors Today? 🤔
So, what are Figma IPOs offering to investors in terms of returns and future outlook? After launching at $33 per share and closing the first day above $115, early investors saw a 250% gain.
While such gains are not sustainable long-term, analysts are cautiously optimistic about Figma’s future. Current investor benefits:
- Steady Revenue Growth: 40–46% YoY revenue increases indicate a healthy, scaling business.
- Product Expansion: With new AI-powered design tools and enterprise features, Figma is growing beyond its original market.
- Market Leadership: Dominating cloud-based design tools with limited competition at its level of integration.
Why are Figma IPOs are Important? 🎯
Understanding what are Figma IPOs is crucial for both seasoned investors and newcomers interested in tech stocks.
Figma’s IPO signals a new era for collaborative software companies. With a history of innovation, a strong user base, and impressive revenue metrics, Figma enters the public market from a position of strength.
If you’re considering investing in IPOs or expanding your tech portfolio, Figma offers a compelling story. Just make sure you understand the risks, do your own due diligence, and consider long-term strategies.
❓ Frequently Asked Questions
1. What are Figma IPOs in simple terms?
- A Figma IPO is when Figma Inc. offered its company shares to the public for the first time on a stock exchange, allowing anyone to invest in the company.
2. Is it a good idea to buy Figma stock now?
- It depends on your risk tolerance. The company is growing fast and has a strong market position, but the current stock price may reflect a high valuation.
3. How did Figma perform on its first day of trading?
- Figma shares opened at $85 and closed at $115.50, an increase of over 250% from the IPO price of $33.
