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Figma Files for IPO, Valuation Could Hit $1.5 Billion

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AI D-A-M-N/Figma Files for IPO, Valuation Could Hit $1.5 Billion

Figma Files for IPO, Valuation Could Hit $1.5 Billion

Figma Takes Key Step Toward IPO with S-1 Filing

Design software company Figma publicly released its S-1 financial filing this week, marking a significant milestone toward its initial public offering. While the document doesn't disclose share quantities or pricing, it provides the most comprehensive look yet at Figma's financial health and growth trajectory.

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Financial Performance Signals Strong Market Position

According to Renaissance Capital estimates, Figma's IPO could raise up to $1.5 billion, which would match CoreWeave's tech IPO record set earlier this year. The company reported:

  • $749 million in 2024 revenue (48% YoY growth)
  • 46% revenue increase in Q1 2025 vs. prior year
  • $821 million rolling 12-month revenue
  • 91% gross margin

The company turned profitable in 2023 but recorded a $732 million loss due to employee stock compensation expenses. By Q4 2024, Figma had returned to profitability.

Leadership Structure Revealed in Filing

The S-1 discloses that CEO Dylan Field holds approximately 75% of voting power through a combination of his shares and those controlled via former co-founder Evan Wallace's family trust. Field cashed out $20 million worth of shares in a 2024 buyout offer.

Major venture backers include:

  • Index Ventures
  • Greylock Partners
  • Kleiner Perkins
  • Sequoia Capital

AI Competition Presents Market Challenge

While Figma's financials appear strong, the company acknowledges emerging threats from AI-powered design tools like Lovable. In its filing, Figma stated:

"We cannot guarantee that our products will remain competitive as new AI technologies develop and integrate into software solutions."

The company is actively investing in AI capabilities but faces significant R&D competition in this rapidly evolving space.

Key Points:

  1. Figma files S-1 with $749M annual revenue and 91% gross margins
  2. Potential $1.5B IPO would match largest tech offering of 2025
  3. CEO Dylan Field controls 75% of pre-IPO voting power
  4. Company returned to profitability after stock compensation charges
  5. AI competition identified as primary market challenge