How Figma's VC Support Could Fuel IPO Recovery

Figma's IPO Set to Make a Strong Impact on the Market

Figma, a leading software company known for its cloud-based design tools, is preparing to make its debut on the stock market with an initial public offering (IPO) this week. According to regulatory filings, the expected price range for the Figma IPO is between $30 and $32 per share. The company will trade under the ticker symbol FIG. This highly anticipated event has been generating significant buzz on Wall Street, as investors await the potential impact of the IPO on the broader market.

The Figma IPO is projected to raise approximately $1.2 billion at the current pricing. This marks a notable milestone for the company, which has grown rapidly in recent years. It also comes in the wake of other major software IPOs, such as Snowflake’s $3.4 billion offering in 2020, which remains the largest by a software firm to date.

Figma provides collaborative design tools that are widely used for creating websites, apps, and other digital products. Its platform has gained popularity among designers and developers for its ease of use and real-time collaboration features. However, the company faced a setback when federal regulators blocked Adobe Systems’ $20 billion bid to acquire it in 2023. That move was seen as a strategic attempt by Adobe to strengthen its position in the design software market.

A Potential Rebound for the IPO Market

Analysts believe that a strong performance from Figma could signal a much-needed rebound in the IPO market. Matthew Kennedy, a senior strategist at Renaissance Capital, noted that a positive reception for Figma could encourage other pre-IPO companies to consider going public. He emphasized that Figma is the first software company since the 2021 boom to go public at over 20 times sales, making it one of the most highly valued enterprise software IPOs in recent years.

Kennedy also highlighted the potential ripple effects of Figma’s success. He mentioned that other high-profile software companies, such as Netskope, Avalara, and SymphonyAI, may follow suit in the near future. Additionally, he pointed out that Canva, a well-known private unicorn, could be a direct comparison to Figma. If Figma’s IPO performs well, it could set a favorable precedent for Canva and other similar companies looking to enter the public market.

Strong Financial Performance and Major Backers

In its S-1 filing for the IPO, Figma revealed impressive financial figures. The company reported $749 million in revenue for 2025, reflecting a 48% increase from the previous year. It also noted 13 million monthly active users and more than 11,100 customers that generate over $10,000 in annual recurring revenue. In the first quarter of 2025, Figma achieved a gross margin of 91% and an operating margin of 18%, showcasing its strong financial health.

The company has attracted backing from some of the biggest names in venture capital, including Kleiner Perkins, Greylock Partners, and Sequoia Capital. These firms have played a critical role in supporting Figma’s growth and development over the years.

Kennedy added that the return of VC-backed tech deals like Figma is a key indicator of a recovering IPO market. “The below-average deal activity since 2022 has coincided with a lack of VC-backed tech deals during the same time,” he said. “So the return of deals like Figma signals a rebound in the IPO market as a whole.”

Adobe's Struggles Amid Market Shifts

While Figma prepares for its IPO, Adobe has experienced a decline in its stock value, with shares falling by 15% in 2025. Despite posting a modestly better-than-expected fiscal second-quarter report, the company’s performance has not been enough to restore investor confidence.

Adobe reported adjusted earnings of $5.06 per share, a 13% increase year-over-year, on sales of $5.87 billion, up 11% compared to the same period last year. While these results were slightly above Wall Street’s expectations, the overall sentiment around Adobe remains cautious.

As the tech landscape continues to evolve, both Figma and Adobe represent different paths in the industry. Figma’s IPO is not just a milestone for the company itself but also a sign of shifting dynamics in the broader market. Investors will be closely watching how this new chapter unfolds.