Figma goes public
Updated:
3 minutes
Remember when Adobe tried to buy Figma for $20 billion? Yeah… that didn’t happen. And honestly, Figma’s founders and employees are probably happier because of it.
Figma has gone public. The IPO priced Figma’s shares at $33 each, but the stock opened at $85 and closed the first day at $115.50—a staggering 250% jump and a market cap of around $70 billion. That’s way more than Adobe’s offer and a huge win for everyone who held stock options.
Founders and Employees: Winners All Around
CEO Dylan Field’s 9% stake? Around $6.6 billion. Employees with stock options? Many walked away with life-changing cash. Even those who sold early in a 2024 tender offer (valuation: $12.5B) might be wishing they had held on.
Independence Is Priceless
The failed Adobe deal wasn’t just a financial win—it kept Figma independent. No corporate chains, no slowing down. Now the company can innovate faster, especially in AI-driven design tools, with public markets cheering it on.
Figma has expanded aggressively over the past year. They’ve launched Figma Draw for illustrators, Figma Sites for building websites, Figma Buzz for interactive prototypes, and Figma Make, an AI-powered assistant. Figma is no longer just a collaborative UI/UX tool—it’s aiming to be a full design platform.
Adobe’s Missed Opportunity
From Adobe’s perspective, this is a bit of a sting. The $20B acquisition would have given them control over their fastest-growing competitor. Now, Figma remains independent, continues to attract users, and invests in AI and cloud-first design tools without constraints. Adobe missed out on a company now worth nearly triple its old offer.
Adobe continues to push its Creative Cloud suite, integrating Adobe XD and leveraging Adobe Sensei AI across applications. Creative Cloud remains the choice for professionals needing advanced photo, video, and graphics tools, with seamless workflows across apps.
Figma vs. Adobe: Who’s Winning?
Figma dominates in collaborative, web-first design, ideal for UI/UX teams and remote work. Adobe leads in advanced creative projects, such as photography, video production, and graphic design. The overlap is growing, but both have distinct niches.
The Figma stock has been volatile post-IPO. After the first-day surge, it hit highs near $142.92 but then fell nearly 60% from that peak. As of early October, it’s trading around $68, reflecting a 20% gain from the IPO price. Despite the ups and downs, the stock’s performance shows strong market confidence in Figma’s growth potential, fueled by AI integrations and new tools.
Takeaways
- Adobe’s $20B offer? Crushed by the IPO.
- Founders and employees? Clearly better off.
- Independence + IPO cash = freedom to innovate like crazy.
- Adobe? Competing against a well-funded, fast-moving Figma.
- Designers? Choice depends on project type, workflow, and ecosystem preference.