Figma, maker of a popular design collaboration tool, has disclosed its initial public offering (IPO) target price range that could raise $1 billion for the AI startup.
Figma is targeting an IPO price of $25 to $28, according to a prospectus filed with the Securities and Exchange Commission (SEC) on Monday (July 21).
The artificial intelligence (AI) firm is planning to sell 37 million Class A shares — 12.5 million shares from its own coffers and 24.5 million from selling shareholders, usually investors who want to cash out.
Figma will list its shares on the New York Stock Exchange, under “FIG.”
The IPO underwriters are Morgan Stanley, Goldman Sachs, Allen and Co., JPMorgan, BofA Securities, Wells Fargo Securities, RBC, William Blair and Wolfe/Nomura Alliance.
After the firm goes public, Co-founder and CEO Dylan Field will control 73.6% of the company. Class A shares, which are being listed on the NYSE, carry one vote per share. Class B and C shares, which are not being listed, carry 15 votes per share, and no voting rights, respectively.
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According to the prospectus, Figma has 13 million monthly active users that include designers, developers, product managers, researchers, marketers and writers.
The startup said 95% of Fortune 500 companies use its product and 78% of the Forbes Global 2000 do so as well, as of March 2025.
Figma’s AI collaboration tool not only lets project stakeholders work together in real time, but also allows developers to extract code directly within the platform. It is also rolling out features that generate functional prototypes and application code from designs or prompts, streamlining the shift from design to development — all without leaving the platform.
Read also: 5 Productivity Tips to Raise Your Work Game Using AI
Founded at Brown
Field and Evan Wallace founded Figma in 2012, after they met as students at Brown University. Back then, designers worked by themselves in silos across different tools and products. Even if they wanted to design with others, the process was fragmented and made it hard to collaborate.
So designers resorted to just emailing huge, marked up files to each other with file names like “Draft_Final_V2_FINAL_v13,” Field said. In the process, there’s often miscommunication among the project’s team.
Figma consolidated the process onto one platform. In 2023, it rolled out Dev Mode, which lets developers translate designs more easily into coded products. Nearly a third of Figma’s monthly users are developers.
Figma makes money through subscriptions.
Last year, Figma booked revenue of $749 million, up 48% year-over-year, but incurred a net loss of $732.1 million. In 2023, revenue was $504.9 million with net income of $737.8 million – including a $1 billion termination fee Adobe paid for the collapse of its proposed $20 billion merger due to regulatory roadblocks.
In the first quarter of 2025, revenue came to $228.2 million, up 46% from the same quarter a year earlier. Net income was $44.9 million.
Figma said its four-year compounded annual growth rate (CAGR) was 53% as of December 2024.
See also: OpenAI Gaining Market Share in AI Tools, With Google a Far Second
CEO: Don’t Expect Share Price Growth
In a letter to shareholders, the CEO explained why Figma is seeking to go public when many “amazing” AI startups chose to stay private.
Aside from the “obvious benefits” such as good corporate hygiene, brand awareness, liquidity and access to the capital markets, “more importantly, I like the idea of our community sharing in the ownership of Figma.”
But Field warned that people who buy the stock shouldn’t expect quick riches. “To be clear, that’s not a promise of share price growth” because markets go up and down, Field wrote. In addition, “our primary goal is not efficiency.”
Rather, Figma is aiming for long-term growth by supporting its designers. This could mean taking “big swings” when top management sees investment or M&A opportunities come up, Field said.
“At times we will make decisions that may not seem immediately rational,” Field warned. “Sometimes, we will make the wrong calls.”
As if those admissions weren’t enough to discourage investors, Field added Figma will “bias towards long-term compounding (measured in decades) over quarterly share price appreciation.”
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