Figma files confidential IPO paperwork after unsuccessful Adobe acquisition

Figma, a collaborative design software startup, revealed today that it has submitted confidential S-1 paperwork to the U.S. Securities and Exchange Commission for its initial public offering. This move comes after Adobe Inc. abandoned its efforts to acquire Figma for $20 billion about 16 months ago.

Established in 2012, Figma provides a range of cloud-based tools aimed at simplifying the design and development process through real-time collaboration. The company’s various products, including Figma Design, FigJam, Dev Mode, and Figma Slides, cater to different elements of digital product creation.

Figma Design serves as a platform for creating user interfaces and experiences, offering features like Auto Layout that allow designers to develop responsive layouts adaptable to various screen sizes. Incorporating artificial intelligence tools, designers can efficiently generate mockups and prototypes, speeding up the design process. Moreover, Figma Design supports the creation of component libraries and high-fidelity, no-code interactive prototypes to establish consistent and scalable design systems.

In addition to Figma Design, FigJam serves as an online whiteboard enabling teams to engage in collaborative brainstorming and planning. With FigJam, users can sketch ideas, map user journeys, and organize thoughts using sticky notes, diagrams, and other visual aids.

Dev Mode provides access to design specs, code snippets, and assets to aid in the accurate and efficient implementation of designs, while Figma Slides allows users to develop and share slide decks directly within the Figma platform.

The decision to file for an IPO follows the failed acquisition attempt by Adobe, which was eventually withdrawn in December 2023 due to regulatory concerns and scrutiny from multiple agencies, including those in the U.K. and Europe. Figma subsequently secured undisclosed funding in July at a reported valuation of $12.5 billion, a considerable drop from Adobe’s proposed acquisition price.

While the exact valuation Figma will seek in its IPO remains unknown due to the confidential nature of the SEC filing, the $12.5 billion valuation sets a solid foundation. The company enters a potentially volatile market, with limited IPO occurrences in recent times. One notable IPO this year was CoreWeave Inc., which debuted on the Nasdaq on March 27.

No specific timeline has been provided for Figma’s IPO, and the company may choose to wait for market conditions to stabilize. Another firm, Klarna Group plc, recently delayed its IPO plans after filing paperwork in March, citing uncertainties arising from external factors like trade policies.

In conclusion, Figma’s decision to pursue an IPO reflects its commitment to growth and expansion, following the challenges faced during the attempted acquisition by Adobe. The company’s innovative suite of design tools continues to attract interest and investment, positioning it as a key player in the competitive landscape of digital product creation.