Figma, the San Francisco-based design software maker, is set to launch the largest tech IPO of the year today, raising $1.2 billion at a share price of $33. The offering, which was 40 times oversubscribed, values the company at approximately $19.5 billion on a fully diluted basis—a valuation just shy of the $20 billion Adobe had agreed to pay before their proposed acquisition collapsed under regulatory pressure in 2023.

Strong investor demand led Figma to raise its price range twice—from an initial $25–$28 per share to $30–$32, and finally pricing at $33. The IPO marks a significant milestone for venture-backed tech companies, many of which have delayed public listings since 2022 due to market volatility and rising interest rates.

Figma’s shares will begin trading on the New York Stock Exchange under the ticker “FIG.” The company, which specializes in collaborative design tools for apps and websites—and has also collaborated with Claude on the AI design side—is now being closely watched as a potential bellwether for the reopening of the tech IPO market.

The company has demonstrated impressive financial momentum. Revenue for the March quarter jumped 46% year-over-year to $228 million, with gross margin above 91%, delivering net income of $45 million—a threefold increase from the same period a year earlier. For the June quarter, Figma projected revenue between $247 million and $250 million—up about 40%—with a potential swing to operating profitability of up to $2.5 million, compared to a prior loss of $894 million driven largely by stock-based compensation expenses.

Figma’s strength lies in its deep enterprise integration. As of March 31, 2025, the company had 1,031 paying customers with over $100K in annual recurring revenue (ARR), up 47% year-over-year. Customers with over $10K in ARR reached 11,107, up 38%.

The majority of proceeds from the IPO will go to existing shareholders, including CEO and co-founder Dylan Field, who is selling a significant portion of his stake. Field holds 56.6 million shares, along with voting control over an additional 26.7 million shares, ensuring he retains control post-listing through super-voting rights.

Early venture backers—including Index Ventures, Iconiq Capital, Sequoia Capital, Greenoaks, Greylock, and Kleiner Perkins—are also among the biggest beneficiaries. Index Ventures leads the institutional group with 17% of shares prior to the IPO, followed by Greylock (16%), Kleiner Perkins (14%), and Sequoia (8.7%). Index and Iconiq were among Figma’s earliest backers, having invested when shares were valued at just 9 cents.

Figma’s listing adds momentum to a cautiously reviving IPO market, following strong debuts from companies like CoreWeave and Circle. The company also benefited from a $1 billion breakup fee paid by Adobe, which bolstered its balance sheet after the failed merger.

With robust demand, strong revenue growth, and a high-profile cap table, Figma's IPO is being heralded as a potential "iPhone moment" for design software—and a hopeful sign for other tech startups eyeing a public debut.