Figma looks to raise $1 billion at $16 billion valuation in IPO filing

The San Francisco-based design software company filed for an initial public offering (IPO) with the US Securities and Exchange Commission (SEC) to raise up to $1 billion and secure a valuation of roughly $16.5 billion on a fully diluted basis. 

According to the IPO prospectus submitted Monday, Figma and its investors plan to offer nearly 40 million shares priced between $25 and $28 each. If the share price is at the top of that range, the company could raise slightly over $1 billion. 

Figma disclosed earlier this month that it holds over $69 million in Bitcoin via ETFs, and USDC reserves worth $30 million, all bought in March.

IPO filing spells valuation of over $16 billion

The prospectus noted that on a fully diluted basis, which accounted for employee stock options and restricted shares, Figma’s valuation would reach approximately $16.5 billion. Its market capitalization would reach $13.6 billion based solely on outstanding shares

The company’s IPO is expected to be priced by the end of the month, according to a source familiar with the matter. Morgan Stanley, Goldman Sachs, Allen & Co., and JPMorgan Chase will lead the offering. Figma plans to list its shares on the New York Stock Exchange under the ticker symbol “FIG.”

According to the IPO filing, Figma generated $228 million in revenue during the first quarter of 2025 and posted a net income of $45 million. Despite reporting a net loss of $732 million in 2024, the company said the shortfall was caused by a one-time tax-related expense tied to an employee stock tender offer.

The software company listed new members on its board of directors, including Mike Krieger, Instagram’s co-founder and Chief Product Officer at AI company Anthropic. He will join the board alongside Luis von Ahn, co-founder and CEO of language-learning platform Duolingo. 

Founder and CEO Dylan Field is still the largest individual shareholder, holding 56.6 million Class B shares, which grant him 51.1% of the company’s voting power. In a letter to investors, Field asserted that the IPO is imperative for the company and its user community.

“It’s time for Figma to buck the trend of amazing companies staying private indefinitely,” Field wrote, citing benefits such as liquidity, corporate transparency, and ownership among the reasons for going public.

Away from the IPO details, Figma also authorized the issuance of “blockchain common stock” via blockchain-based tokens. Still, it said there are currently no plans to issue these shares yet. 

During the second quarter, the company added new clients and expanded its operating margin to between 4% and 5%, up from 3% in the same quarter last year.

Tech firms open to public listing 

Technology institutions, particularly those backed by venture capitalists, are reportedly now more open to joining the public market. Some investors were disconcerted about buying stocks under President Donald Trump’s tariffs and protectionist policies, worried they could further delay listings from companies like Klarna and Stripe.

The public debut of CoreWeave in March helped change the sentiment around tariffs and their effect on the US economy. The data center operator lowered its valuation to go public but has since seen its stock surge over 200%, hitting a market capitalization of nearly $63 billion.

Other tech institutions disputed that public listings could be looking at how Figma’s offering evolves. If successful, several high-profile startups that have been privately held for years due to market volatility and high interest rates might consider offering shares on public stock exchanges.

Meanwhile, Adobe has seen its stock fall 18% year-to-date, dragged down by investor concerns over competition from generative artificial intelligence models. 

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