Figma has been the go-to tool for designers and product teams around the world. From startups to tech giants, millions rely on it every day to build sleek user interfaces and seamless prototypes. But now, the design software powerhouse is stepping into an entirely different arena—Wall Street.
With the company publicly revealing its financials, investors and analysts are buzzing. A potential $1.5 billion IPO could catapult Figma into tech-stock royalty. But is it all just hype, or does the data show that this could be the next big breakout in tech?
Let’s dive into what’s happening behind the scenes at Figma, from its founders to its mind-blowing numbers, and why this IPO could shake up the tech world.
What Is Figma? (In Case You’ve Been Living Under a Rock)
Let’s start at square one.
Figma is a cloud-based design platform that allows teams to collaborate in real time. Think Google Docs—but for interface design. It’s fast, intuitive, and doesn’t require any software downloads.
Designers love it. Developers love it. Even marketers and product managers are jumping on board. It’s a one-stop shop for building modern digital experiences.
The Focus Keyword: Figma’s Journey to IPO Stardom
The journey from a design startup to one of the most anticipated tech IPOs in recent memory didn’t happen overnight. Figma’s rise is a classic Silicon Valley story: two founders, a disruptive idea, some smart funding, and years of laser-focused product innovation.
The buzz is real—especially now that Figma has filed its S-1 document, offering an in-depth look at the company’s financial health, product adoption, and market vision.
Breaking Down the $1.5 Billion IPO Buzz
So why are analysts expecting Figma’s IPO to raise $1.5 billion?
According to Renaissance Capital, if Figma hits this number, it will match or beat CoreWeave’s IPO, which has been the largest tech IPO of 2025 so far.
That’s a huge deal. Why? Because IPOs of this scale don’t just happen. They indicate massive confidence in the company’s future growth.
Inside Figma’s Financials: Numbers That Matter
Let’s talk numbers. Because investors live and breathe data—and Figma has some impressive digits to show off:
- 2024 Revenue: $749 million (up 48% from 2023)
- Rolling 12-Month Revenue (2025): $821 million
- Gross Margin: 91%
- First Quarter 2025 Revenue Growth: 46% year-over-year
That’s not just solid—it’s elite. For a private tech company, these numbers signal stability, scalability, and a product-market fit that’s hard to beat.
Profitability: What’s the Real Story?
Sure, the revenue numbers are great. But is Figma profitable?
Yes… and no.
- 2023: Profitable
- Later in 2023: A massive $732 million loss
Wait, what? Hold on—it’s not as bad as it sounds.
That loss was due to a one-time employee stock compensation event. Figma issued 10.5 million stock options at $8.50 per share. That’s a classic pre-IPO maneuver to retain talent and reward early contributors.
By Q4 2024, Figma bounced back into profitability—and that streak continued into Q1 2025. So yeah, the books are looking good.
Zero Debt? Almost Too Good to Be True
Figma also reported something that will make any investor smile: zero total debt. While the company does have a revolving line of credit, it hasn’t tapped into it yet.
This puts Figma in a rare category of late-stage startups with high revenue, strong margins, and no significant liabilities. That’s a green flag if there ever was one.
Dylan Field: The Visionary at the Helm
Dylan Field, Figma’s co-founder and CEO, is a name you’ll be hearing a lot more of.
In 2024, he cashed out $20 million worth of shares in a secondary offering—a sign of confidence, not exit. Field remains deeply committed to the company and, according to the S-1, controls about 75% of the voting rights. That’s huge.
This kind of leadership control is rare and gives Field the ability to keep Figma aligned with his long-term vision—even under the pressures of being a public company.
Evan Wallace: The Co-Founder You Might Not Know
While Dylan Field is the public face, there’s another key figure behind the scenes: Evan Wallace.
Wallace left Figma back in 2021, but he still holds Class B super-voting shares through a family trust—equivalent to around one-third of those special 15-vote-per-share stocks.
However, the S-1 confirms that Wallace has ceded full voting rights to Field. That means Figma remains laser-focused under one clear leader.
The VC Powerhouse Behind Figma
Figma’s growth didn’t happen in a vacuum. Some of Silicon Valley’s biggest venture capital firms had their backs:
- Greylock
- Kleiner Perkins
- Sequoia
- Index Ventures
These aren’t just any investors. These are the VCs who backed companies like Airbnb, Google, and LinkedIn. The fact that they’re all-in on Figma says a lot.
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What Makes Figma Stand Out in a Crowded Market?
Figma isn’t the only design tool out there. Adobe, Sketch, and upstarts like Lovable are all vying for market share.
But Figma has one major advantage: it’s built for collaboration. While competitors focus on solo design workflows, Figma has nailed the “team sport” of product design.
And that’s a big reason why it continues to win.
AI and the Future of Figma
Now let’s talk about the elephant in the room: AI.
Figma knows it can’t rest on its laurels. Upstarts like Lovable are leveraging AI-powered design features that make traditional design workflows look clunky.
Figma’s S-1 acknowledges this risk. But it also highlights their investment in generative AI, hinting at big product releases ahead.
The company is betting big on AI—and that could be the X-factor in its post-IPO success.
Challenges on the Horizon
Not everything is smooth sailing. Here are a few concerns potential investors should keep in mind:
- Increased competition from AI-first startups
- Market saturation in the UX/UI design space
- High expectations from going public
But if any company is well-positioned to navigate these waters, it’s Figma.
Why Retail and Institutional Investors Are Watching Closely
With clean books, strong growth, and heavy VC backing, institutional investors are already circling Figma.
Retail investors, too, are looking at it as the next big tech stock. And for good reason—Figma combines the appeal of a loved consumer product with the margins of a SaaS powerhouse.
What Happens Next?
The final IPO details—like number of shares and pricing—haven’t been released yet. But the momentum is real.
If Figma hits its projected $1.5B raise, it will become one of 2025’s defining tech IPOs.
Conclusion: Should You Keep Figma on Your Radar?
Absolutely.
From a rock-solid product to impressive financials, strong founder leadership, and savvy venture backing, Figma is more than ready for its moment in the spotlight.
Whether you’re an investor, a designer, or just a tech nerd who loves a good underdog story, this is one company worth watching.
We’ll be keeping an eye on that ticker symbol when it drops—because Figma might just be the next crown jewel of the public markets.
FAQs
1. What is Figma’s primary business model?
Figma earns revenue via a freemium SaaS model, offering both free and paid plans for design collaboration and prototyping tools.
2. Who are the founders of Figma?
Figma was co-founded by Dylan Field and Evan Wallace. Field remains CEO and controls 75% of the voting rights.
3. How much revenue did Figma generate in 2024?
Figma reported $749 million in revenue in 2024, marking a 48% year-over-year increase.
4. Who are the key investors in Figma?
Figma is backed by Greylock, Kleiner Perkins, Sequoia, and Index Ventures, among others.
5. Why did Figma report a loss in 2023?
The $732 million loss was due to one-time stock compensation expenses, not operational issues.
6. Does Figma use AI in its products?
Yes, Figma has acknowledged heavy investments in AI and generative technologies to remain competitive in the design software market.
