Figma Hits $65B Valuation After Blockbuster IPO Debut

Key Highlights

• Figma’s stock skyrocketed 250% on its first trading day
• The company reported 46% revenue growth in Q1 2025 with 91% gross margin
• Figma’s success is 2025’s biggest tech listing so far

In an impressive IPO debut, Figma, the cloud-based design giant, has taken the New York Stock Exchange (NYSE) by storm this week.

The IPO, priced at $33 per share, exploded to a 250% gain by the closing bell on July 31. This catapulted the company’s valuation over $65 billion, becoming 2025’s most explosive tech listing so far.

Figma’s Impressive Journey 

Founded in 2012 by then-teenage coder Dylan Field and Evan Wallace, Figma began as a scrappy challenger to Adobe’s design monopoly. 

Its browser-based, real-time collaboration tools caught fire with Fortune 500 companies. The tool eventually amassed 13 million monthly users. 

The failed 2022 Adobe acquisition, blocked by regulators over antitrust concerns, now seems a blessing as Figma’s IPO valuation nearly tripled Adobe’s scuttled $20 billion offer.

(Source: Boring_Business on X)

Field, who sold $77.5 million worth of shares at listing, retains a stake worth billions. On the other hand, early backers like Sequoia and Kleiner Perkins saw their bets paying off into a $24 billion windfall. 

Even the Marin Community Foundation, an unlikely shareholder, cashed out $440 million. This is proof that nonprofit investing can sometimes outpace hedge funds.

The Numbers Behind the Hype

Behind the euphoria and success of IPOs, the company’s impressive numbers speak for themselves:

• Revenue surged 46% YoY to $228 million in Q1 2025, with net income tripling to $44.9 million.
• 91% gross margins—a metric that would make SaaS rivals weep—thanks to its asset-light, subscription-driven model.
• 1,000+ clients paying over $100k annually, including 78% of the Forbes Global 2000.

Despite this growth, the risk factor is still there. The company’s eye-watering valuation with 50x forward revenue assumes Figma can maintain its solid growth while fending off AI-powered rivals like Lovable. 

Its 2024 net loss of $732 million, a hangover from the Adobe breakup fee, also reminds investors that unicorns aren’t always profitable fairy tales.

Figma Adds AI and Crypto to Its Strategy

Figma isn’t just sticking to its design strengths. The 2025 launch of Figma Make, an AI prototyping tool, and a $70 million bet on Bitcoin ETFs show its big ambitions beyond pixels and palettes. 

“They’re morphing from a design app into a full-stack productivity platform,” notes Bernstein’s Sarah Wang. “The question is whether developers and PMs will embrace it as warmly as designers have.”

The IPO also marks a turning point for tech listings. After a 2024 drought, 2025 has seen 123 IPOs raise $19.7 billion—with Figma, CoreWeave, and Circle leading a charge of AI-adjacent darlings.

But as Fed rate cuts fuel risk appetite, skeptics warn of déjà vu. “This feels like 2021’s SPAC mania with better fundamentals,” cautions Wedbush’s Dan Ives. “Not every company is Figma.”

With shares stabilizing around $110 in early August trading, all eyes are on Figma’s Q2 earnings and lock-up expirations. Can it justify its premium by expanding into enterprise workflows? Will AI competitors undercut its moat? One thing’s certain: after a decade of quiet disruption

After Figma, Will Canva Become the Next Big Thing?

After observing Figma’s IPO success, many experts believe that it could push Canva and these other software companies to go public.  

“There are a lot of private software company candidates that will look to go public over the next 12 months if the IPO market is as strong as it looks,” Gil Luria, head of technology research at D.A. Davidson, said in a statement. 

“Big congratulations to the Figma team – it’s great to see such strong validation for the market,” Canva co-founder Cliff Obrecht said. However, he revealed no clues on the timing of his own IPO.

“At Canva, we remain laser-focused on continuing to strengthen our product and build on the incredible momentum we’ve built so far.”