Strong IPO signals market confidence in design tech
Figma shares soared over 5% on Friday, building on a massive 250% gain during its New York Stock Exchange debut the previous day. The stock, listed under the ticker FIG, opened at $85 and closed Thursday at $115.50. On Friday, it traded above $120, marking one of the most successful tech IPOs in recent years.
This impressive debut comes after a prolonged IPO slowdown across the tech sector. Figma joins a growing list of private companies entering the public markets in 2025, including CoreWeave, Hinge Health, Circle, Omada Health and Chime. The strong investor appetite for Figma highlights renewed enthusiasm for SaaS and productivity platforms, especially those with a collaborative and design-focused edge.
Pricing momentum reflects high investor demand
Originally planning to price its shares between $25 and $28, Figma increased its range to $30–$32 earlier this week and ultimately priced shares at $33. This decision proved prescient, as demand on opening day far exceeded expectations. The IPO success signals that investors see long-term growth potential in Figma’s cloud-based design and collaboration tools, especially as remote and hybrid work models continue to thrive globally.
The company was founded in 2012 in San Francisco and has since evolved into a leading design platform competing with Adobe, Sketch and others. Figma’s freemium model and intuitive browser-based design environment have attracted a broad user base ranging from startups to enterprise clients.
Adobe acquisition collapse becomes a blessing in disguise
Figma’s public success stands in stark contrast to what could have been a quiet acquisition. Adobe had announced plans to buy the company for $20 billion in 2022, but regulatory pushback from U.K. competition authorities led to the deal’s cancellation in 2023. At the time, critics feared Adobe’s acquisition would stifle innovation and limit choice in the design software market.
The failed deal may have set the stage for Figma’s independent rise, with many now viewing the IPO as validation of its unique value proposition. By remaining independent, Figma continues to build its own ecosystem, innovate rapidly and capitalize on increasing demand for collaborative design solutions.
Outlook bright amid SaaS and design tech momentum
Figma’s success story signals more than just investor confidence in one company. It reflects broader optimism for design-centric software firms that enable distributed teams to collaborate seamlessly. With cloud-native architecture and a strong developer community, Figma is well-positioned to expand into adjacent markets such as product management, prototyping and AI-assisted design workflows.
Its inclusion on CNBC’s 2025 Disruptor 50 list, where it ranked 45th, underscores its growing influence in the SaaS landscape. As IPO activity picks up pace, Figma’s explosive debut could inspire other design and productivity startups to follow suit and test public markets.
