San Francisco's tech scene may be witnessing another significant event as Figma, Inc., the design software firm that enables real-time collaboration among users, has officially thrown its hat into the IPO ring. The company has filed a registration statement with the U.S. Securities and Exchange Commission, marking a move to go public with its Class A common stock on the New York Stock Exchange under the symbol "FIG," according to an announcement given by Figma's Blog. The offering is contingent on market conditions, and specifics about share quantity and price range have not yet been disclosed.
Founded by CEO Dylan Field and former CTO Evan Wallace in 2012, Figma has emerged as a heavyweight in the design software arena. Aiming to democratize design through its platform, Field shared his perspective in his founder letter, as reported by San Francisco Business Times, stating, "More importantly, I like the idea of our community sharing in the ownership of Figma—and the best way to accomplish this is through public markets."
The attempt to become publicly traded comes after surviving regulatory pushback, scrapping what was supposed to be a $20 billion acquisition deal with Adobe in 2022. Now standing on its own, Figma, according to the Business Times, reported a $749 million revenue in 2024 and boasts a user base that includes 95% of the Fortune 500 companies. Despite these impressive numbers, the company does face challenges ahead, having reported a considerable net loss in 2024 primarily due to stock-based compensation.
While the Bay Area has seen a relatively slow stream of companies going public in recent years, Figma would be the fourth San Francisco company to join this exclusive club in 2025 alone, if and when their public offering gets the green light. This could signal a revitalization of IPO activity in the region, particularly within the tech sector. Adding to its stature, the company recently welcomed a new player to its board, ServiceNow Inc. CEO Bill McDermott, as reported by the Business Times.
Morgan Stanley, Goldman Sachs & Co. LLC, Allen & Company LLC, and J.P. Morgan are the lead book-running managers for the proposed offering. These financial giants testify to the scale of Figma's intended public market debut. Interested parties must watch for the prospectus, which will offer more substantial insights into the anticipated public offering.
