Dylan Field, co-founder and CEO of Figma, speaks at the startup’s Config conference in San Francisco on May 10, 2022.
Figma
Figma, a cloud-based design tool company, is making waves in the tech industry with its latest announcement. The startup revealed that it will be conducting a tender offer, allowing investors, including current and former employees, to sell their shares. This move values the company at an impressive $12.5 billion, marking a 25% increase from its previous valuation.
However, this valuation falls short of the acquisition offer made by Adobe in 2022, which was set at $20 billion. Despite the initial interest from Adobe, the planned acquisition was called off in December due to regulatory scrutiny.
The San Francisco-based startup anticipates the tender to amount to between $600 million and $900 million, with the backing of over 25 investors, both existing and new. Notable names such as A16z, Sequoia, and Kleiner Perkins are among the participants in this offer.
Figma has gained significant traction in the market, being utilized by tens of thousands of employees within tech giants like Microsoft, Google, Oracle, and Salesforce. Microsoft alone spends millions annually on Figma’s deployment, highlighting the software’s importance in the corporate world.
Back in June 2021, Figma reached a valuation of $10 billion during a funding round that saw investment from Morgan Stanley’s Counterpoint Global. The company’s growth was impressive until the market downturn of 2022 impacted cloud stocks severely, leading to a slowdown in pre-IPO funding rounds.
Adobe’s interest in acquiring Figma stemmed from the belief that the collaboration between the two companies could revolutionize the creative industry. However, with the deal falling through, Adobe now faces a $1 billion breakup fee.
Overall, Figma’s latest move signifies a milestone in its journey as a leading design tool company. With a growing list of high-profile clients and a valuation on the rise, Figma is poised for further success in the tech landscape.
— CNBC’s Jordan Novet contributed to this report.