Software manufacturer Figma surged 250% after its initial public offering (IPO): How did the design darling become a platform powerhouse?

Software manufacturer Figma has seen its stock price soar by 250% after its initial public offering (IPO), reaching a market capitalization of 56.3 billion USD, far exceeding its abandoned valuation of 20 billion USD. Adobe's deal fell through due to regulatory resistance, and it seems that Adobe has narrowly escaped a disaster. Instead, Figma's investors have given it a premium, reflecting its strong growth momentum: Q1 2025 revenue increased by 46% year-over-year, with an adjusted gross margin close to 92%. In contrast, Figma's profitability is comparable to that of industry giants, providing significant room for reinvestment. The central figure in this whirlwind is Figma's 32-year-old co-founder and CEO Dylan Field. The stock he holds is currently valued at approximately 6 billion USD, highlighting his substantial role in the company's rise.

1. The Amazing Performance of Figma's IPO: The Design Darling in High Demand

This IPO itself is highly sought after. The oversubscription exceeded 40 times, and more than half of the orders remain unfilled, indicating a bustling market that drowns out any cautious whispers. Figma sold 12.47 million shares, while early supporters such as Index Ventures, Greylock Partners, and Kleiner Perkins sold 24.46 million shares. Figma's pricing—initially set between $30 and $32 and then slightly increased—appears relatively conservative amid the soaring market bids.

2. Dylan Field: The Visionary at the Helm

Field's story is a typical Silicon Valley story. He gave up Brown University to obtain the Thiel Fellowship and co-founded Figma with Evan Wallace in 2012. Their bet on a cloud-based collaborative design platform ultimately paid off, as many companies flocked to its browser-based interface.

The "Moon Landing Project" salary scheme signed by Field last month is also eye-catching. This 10-year compensation plan will begin to vest when Figma's 60-day average stock price reaches $60—currently, the stock price has reached $115.50, making the highest target of $130 seem out of reach. Field holds 15 votes per share of Class B stock, thus retaining 74.1% of the voting rights, solidifying his control over the future of Figma.

"This is not the ultimate goal," Field told Bloomberg. "We must continue to sprint. The public market cannot distract us." For him, the IPO is an "important branding moment" - an opportunity to focus on the critical role of design in the tech sector.

3. From Design Darling to Platform Powerhouse: Business Expansion and Artificial Intelligence Layout

Figma's flagship product is a tool for creating web and mobile interfaces, winning the favor of designers with its real-time collaboration features. However, the company has not stopped there. In recent years, it has continuously expanded its business scope, launching Dev Mode (released in 2023, aimed at connecting designers and developers) and Figma Make (an AI-driven feature that converts natural language prompts into prototypes). This is not just an expansion but a pursuit to become an indispensable tool across various professions, from product managers to marketers.

The financial data confirms this ambition. In the first quarter, revenue increased by 46% year-on-year, reaching 228 million USD, with a net profit of 44.9 million USD. Despite a net loss of 732 million USD in 2024 due to rising operating costs, this growth momentum has weakened, yet it still highlights the rapid expansion of the company. Its subscription model—charging based on user and seat types—is similar to the "software as a service" strategy, but Figma's execution sets it apart.

Artificial intelligence is the next frontier. In the face of competitors like Lovable and Bolt closing in, Figma is doubling down on its investments. "We have a lot of room to explore AI products and experiences," Field said. Andrew Reed from Sequoia Capital, a board member of Figma, believes that Figma will evolve into a universal collaboration platform—a vision that will be realized with the support of its growing user base.

IV. The Stimulant of IPO and the Future Path

The success of Figma has far-reaching implications. This year, the total amount of Initial Public Offerings (IPOs) in the United States has reached $21 billion, slightly higher than the $20.2 billion in the same period of 2024. The auction-style subscription process adopted by the company—where investors decide on the price and quantity themselves—has fueled this surge, providing a potential blueprint for future listings. For an IPO market eager to shake off the post-pandemic lull, this is undoubtedly a glimmer of hope.

Field's gaze has long turned elsewhere. He vowed to conduct "massive" acquisitions, targeting teams and assets that align with Figma's culture and mission. "There are many things in the market that can enhance our product design and development," he said. With the proceeds from the IPO and high valuation, Figma has the firepower to act as an integrator.

Conclusion:

Figma's debut is a victory of its vision and timing, but the public market is ever-changing. Striking a balance between growth and strong profitability is crucial, especially as it faces the impact of new artificial intelligence players and aims for acquisitions. However, for now, attention remains focused on Field and his team. This is not just a victory for Figma, but a signal that the tools shaping our digital world are finally receiving the recognition they deserve.