The design software pioneer moves forward with public offering after failed Adobe acquisition, positioning for one of 2025’s most significant tech IPOs
Enterprise design platform Figma officially launched its initial public offering roadshow on Monday, marking a pivotal moment for one of the software industry’s most closely watched companies. The San Francisco-based startup plans to offer more than 36 million shares of Class A stock with an expected price range between $25 and $28 per share, positioning the company to raise approximately $1 billion in what could become one of 2025’s largest technology debuts.
The company will list on the New York Stock Exchange under the ticker symbol “FIG,” with pricing expected during the week of July 28. The offering represents a strategic mix of primary shares for company growth capital and secondary shares for existing shareholders seeking liquidity.
Valuation Dynamics in Post-Adobe Era
If Figma prices its shares at the midpoint of its indicated range, the company would achieve a market valuation of approximately $15.9 billion, according to Renaissance Capital. This valuation sits strategically between two significant benchmarks: below the $20 billion that Adobe offered to acquire the company in September 2022, but meaningfully above the $12.5 billion valuation established during a 2024 tender offer that allowed employees and early investors to monetize portions of their stakes.
The pricing reflects the complex dynamics facing Figma following the collapsed Adobe acquisition. Regulatory opposition from both U.S. and European authorities ultimately forced Adobe to abandon the deal in December 2023, paying Figma a $1 billion termination fee and leaving the design platform to pursue independent growth strategies.
Market Leadership in Collaborative Design
Figma’s public market debut comes from a position of substantial market strength. The company commands a dominant 40.65% market share in the collaborative design space, capturing an estimated 77% of the UI design market as of 2021, with continued growth since then. This market position has been built on the platform’s cloud-native architecture that enables real-time collaboration—a fundamental departure from traditional desktop-based design tools.
The company’s financial performance supports its market leadership claims. Figma is expected to surpass $400 million in total annual recurring revenue (ARR), with best-in-class net dollar retention exceeding 150 percent. Recent reports suggest the company has achieved over $820 million in revenue, demonstrating accelerated growth following the failed Adobe acquisition.
Strategic Positioning Against Industry Giants
Figma’s independent path forward positions the company as a direct competitor to Adobe’s design ecosystem, particularly challenging Adobe XD and other Creative Cloud applications. In the collaborative design and prototyping category, Adobe maintains significant presence with multiple products, including Adobe Discover (21.04% market share), Adobe Premiere Pro CC (15.79%), and Adobe XD (10.58%), but none match Figma’s unified platform approach.
The competitive landscape reflects broader industry shifts toward collaborative, cloud-based design workflows. Industry analysts estimate a total addressable market of $16.5 billion by 2025, with Figma positioned to capture significant share through its integrated design, prototyping, and collaboration capabilities.
Founders’ Vision and Investor Backing
Founded in 2012 by Dylan Field and Evan Wallace, Figma has evolved from a browser-based design tool concept into a comprehensive enterprise platform. The company has raised more than $740 million in venture capital from prestigious firms including Andreessen Horowitz, General Catalyst, and Sequoia Capital, demonstrating consistent investor confidence in its vision and execution.
Field’s leadership through the Adobe acquisition attempt and subsequent independent strategy has positioned the company for sustainable growth. The company employs approximately 800 people and continues expanding its enterprise footprint, with major corporations including Microsoft adopting the platform across their design teams.
IPO Market Context and Timing
Figma’s public offering comes during a period of renewed interest in technology IPOs, following several years of market uncertainty. The company’s combination of growth and profitability could capture current investor enthusiasm similar to recent successful debuts like Circle Internet Group.
The timing also reflects strategic considerations around market conditions and competitive positioning. By going public independently, Figma maintains control over its product roadmap and competitive strategy while accessing public market capital for continued growth and potential acquisitions.
Growth Strategy and Market Expansion
The IPO proceeds are expected to fuel Figma’s expansion into adjacent markets and strengthen its competitive position against both established players and emerging AI-powered design tools. The company has indicated plans to “take big swings” with acquisitions, suggesting an aggressive growth strategy leveraging public market capital.
International expansion represents another significant opportunity, with over 53,579 companies globally using Figma for collaborative design and prototyping as of 2025. The platform’s cloud-native architecture provides natural advantages for global deployment and localization.
Risk Factors and Competitive Challenges
Despite its market leadership, Figma faces several strategic challenges as it transitions to public company status. Competition from Adobe remains intense, particularly as the design giant continues developing XD and other collaborative tools. Additionally, emerging AI-powered design platforms could potentially disrupt traditional design workflows.
The company must also navigate the complexities of public market expectations while maintaining its innovation velocity and company culture. Enterprise sales cycles and large customer concentration present additional risks common to B2B software companies.
Looking Ahead
Figma’s IPO represents more than a single company’s public market debut—it symbolizes the maturation of collaborative design as a fundamental business capability. As digital transformation continues across industries, design platforms that enable distributed teams to create and iterate effectively become increasingly strategic.
Success in the public markets will depend on Figma’s ability to continue expanding its platform capabilities while maintaining the user experience that drove its initial adoption. The company’s proven track record of innovation and market leadership provides a solid foundation, but public market performance will ultimately determine whether investors share management’s vision for the future of design collaboration.
The week of July 28 will mark a crucial milestone not just for Figma, but for the broader enterprise software sector’s assessment of collaborative productivity tools in an increasingly distributed work environment.
