Figma Stock: Will Figma IPO After the Failed Adobe Deal?
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Explore ways to own Figma stock before the Figma IPO. Get access to select pre-IPO startups via the Fundrise Innovation Fund.
Table of Contents
Figma Recent News
05/16/2024: Figma deal allows employees to sell shares
02/08/2024: NYT: A Start-Up Picks Up the Pieces
01/23/2024: Figma to boost employee equity packages
01/05/2024: InVision is shutting down in the era of Figma
Older news…
What is Figma?
Figma is a software platform for collaborative design and application development. The business is a software-as-a-service (SaaS) model, providing users with web-based tools for a recurring fee.
Founded by Brown University students Dylan Field and Evan Wallace in 2012, Figma empowers remote collaborative user-interface design and whiteboarding (akin to Miro).
The company inked a deal to be acquired by Adobe in September 2022. But the companies decided to end their merger in December 2023 due to regulatory roadblocks. Regulators perceived the deal as anti-competitive due to similarities to the Adobe XD product.
Now that Figma is operating as an independent company, we’re watching its next moves, which could include a new private funding round, fresh acquisition suitor, or Figma IPO.
Is Figma Publicly Traded?
No. Figma is a private company.
Who Owns Figma?
Figma is a venture-backed startup. Since the early days, Figma has exchanged company equity for cash to help it develop the platform and grow.
Startups do this when they don’t have enough capital to self-fund.
Figma’s founders and employees own a portion of the company, as do several well-known venture capital firms and investors.
The Figma investor list includes Index Ventures, Andreessen Horowitz, Greylock, Kleiner Perkins, Sequoia, Durable Capital, Haystack, Founders Fund, ICONIQ, Morgan Stanley’s Counterpoint Global, Adam Nash (LinkedIn), Mike Krieger (Instagram), Jeff Weiner (LinkedIn), Soleio Cuervo, and Soleio Cuervo (Facebook).
What is the Figma Valuation?
The Figma valuation is $12.5 billion based on the May 2024 tender offer that allowed employees to liquidate shares after the Adobe breakup.
The Adobe acquisition price was $20 billion. The Figma valuation before the acquisition was $10 billion, established at the end of its Series E funding round in June 2021.
Adobe investors were unreceptive to the September 2022 deal at first, but the stock recovered over the following months.
When the deal fell through at the end of 2023 due to regulatory hurdles, investors reacted mildly, indicating they were comfortable with the valuation.
We won’t get a fresh valuation estimate until Figma raises new private funds, leaks a private valuation to the press, or files for an IPO.
When is the Figma IPO Date?
There is no Figma IPO date estimate at this time.
Figma only recently abandoned its plans to be acquired by Adobe. IPO preparations were likely not a consideration as it was preparing for an acquisition.
Now that the acquisition is abandoned, Figma will continue as an independent company.
It may become an acquisition candidate for a new suitor like Microsoft or Salesforce. Or it may pursue an IPO.
I expect we’ll hear about the company’s future ambitions in 2024 when it raises more cash via a new private round or IPO.
What is the Figma Stock Price?
Figma is not publicly traded, so there is no public Figma stock price.
Private stock price information from pre-IPO marketplace data and other sources is becoming more available and reliable.
However, since the pending deal likely restricted private transactions, Figma stock price estimates are dubious until more shares change hands.
What is the Figma Stock Symbol?
Figma does not have a stock symbol yet because it is private and has not announced plans for an IPO.
We’ll learn what the Figma stock symbol is if and when it files for an IPO with the SEC.
Here are two suggestions that are available in the U.S.:
- FGMA
- FIGM
Where can I find the Figma S-1 Filing?
The company has not filed for an IPO publicly (or likely, confidentially). If the company chooses to list in the U.S., the S-1 filing will be the first documentation available for financial review.
How to Buy Figma Stock
Now that Figma and Adobe have abandoned their merger plans, investment opportunities may arise via pre-IPO investment platforms.
Furthermore, the takeover termination may put Figma on a path to an IPO.
Plaid, a fintech, experienced a similar merger cancellation and has not filed for an IPO or been acquired. That suggests it may take multiple years for Figma to recover from the Adobe merger.
In the meantime, investors can use the following outline to explore potential ways to buy Figma stock.
1. Access shares via pre-IPO investing platforms
Figma private direct investment shares may become available if early investors or employees want to cash out. Stock owners are likely frustrated they didn’t get the payout from the merger.
Shareowners have multiple options to offload shares if allowed.
A few platforms have evolved to allow these individuals to fund stock options or liquidate holdings before the IPO.
Notable pre-IPO exchanges include EquityZen, ForgeGlobal, Hiive, Equitybee, and Linqto.
Monitor these platforms for Figma share availability.
The SEC requires pre-IPO investors to be accredited, meaning a net worth above $1 million (not including primary residence) or an income above $200,000 (or $300,000 with a spouse).
Check out our list of the best pre-IPO investing platforms for current platforms that may have shares available.
Another option may be a venture capital fund such as the Fundrise Innovation Fund.
Fundrise purchased a $6.2 million stake in Figma competitor Canva in September 2023. The Fund does not own Figma, but the upcoming private availability of Figma shares could introduce an opportunity as employees look for ways to liquidate and Fundrise expands its portfolio of private companies.
All U.S.-based investors can own a small piece of Canva stock through the Fund for a minimum investment of $10. Non-accredited investors are welcome.
Read my Fundrise Innovation Fund review to learn more about the pre-IPO portfolio.
Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.
2. Buy Figma stock during the Figma IPO through a participating broker
Figma may IPO in the next 1-3 years after its failed attempt to be acquired.
Those interested in investing in a future IPO can look to online brokers offering free IPO investing to retail investors.
Here’s a list of the top brokers for IPO investing.
Large brokers such as Fidelity and Charles Schwab sometimes receive IPO shares but often distribute them to their wealthiest clients.
However, brokers such as the following sometimes offer retail investors the chance to acquire IPO shares:
If your broker offers IPO access, join the email and text alerts for upcoming IPOs. There are no guarantees you’ll receive shares, but shares may be worth pursuing for some deals.
3. Buy Figma stock after the IPO
Waiting for an IPO requires patience but offers advantages.
First, it allows investors to analyze multiple quarters of financials and company performance.
Second, IPO stocks tend to rise with high-demand companies, presenting an opportunity for IPO investors to benefit from the surge.
But if you can’t get access, waiting may be better.
Many IPOs experience an initial price increase (“the pop”), followed by a decline after quarterly earnings reports.
For example, in 2021, both Rivian and Robinhood saw significant IPO success, but their stock prices dropped over 80% within six months.
Post-IPO declines can serve as excellent entry points for long-term investors.
Caution is advised against buying overvalued shares immediately after the IPO, as prices often fall due to lock-up expirations and quarterly earnings disappointments.
Despite short-term fluctuations, disruptive companies tend to show higher value in the long run, rewarding patience.
Figma News Archive
12/18/2023: Figma and Adobe abandon merger
09/15/2022: A new collaboration with Adobe
06/24/2021: Figma’s Series E
04/30/2020: Figma Eyes Acquisitions, New Tools With $50 Million In Fresh Funding
04/20/2020: Figma’s Series D round
02/14/2019: Figma raises $40MM Series C round led by Sequoia
02/01/2018: Figma raises $25M Series B
12/03/2015: Design Collaboration Tool Figma Launches With $14M To Fight Adobe
06/26/2013: 21-Year-Old Thiel Fellow Raises $3.8 Million For Figma
Conclusion
Investors get excited when they identify companies riding extraordinary macroeconomic trends (productivity, collaboration, and SaaS). This can lead us to private companies positioning to profit from massive opportunities.
Buying the stock early on can often prove difficult for retail investors.
Figma’s availability is limited due to the recent abandonment of the Adobe acquisition. The new status quo may open new opportunities in the coming year.
Retail investors can own a similar company, Canva, via the Fundrise Innovation Fund. The minimum to invest is $10, and all U.S.-based investors 18+ are welcome. But we have yet to see Figma availability on pre-IPO platforms.
If you decide to pursue IPO shares or direct Figma shares (not via a venture capital fund), maintain reasonable expectations. An IPO, private share availability, or new acquisition could be years away as the company recovers from the Adobe saga.
If Figma stock is on your acquisition list, good luck. Invest in pre-IPO and IPO companies with caution.
Read more: Top SaaS Startups
* Disclosure: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own. The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long HOOD and the Fundrise Innovation Fund.
Craig Stephens is a former IT professional who left his 19-year consulting career at the IRS to be a full-time finance writer. A DIY investor since 1995, he started Access IPOs in 2016 to provide a resource for ordinary investors pursuing access to IPOs. Craig studied Finance at Michigan State University and lives in Northern Virginia with his wife and three children. Learn more about Craig.
