Design software company Figma Inc. has confidentially filed for an initial public offering in the United States, selecting Morgan Stanley as the lead underwriter. This move positions the San Francisco-based firm as a significant test case for investor appetite in technology listings during a period of market volatility driven by geopolitical tensions and fluctuating economic policies.
Figma’s decision to proceed with an IPO follows the collapse of a proposed $20 billion acquisition by Adobe Inc. in December 2023, which was abandoned due to antitrust concerns raised by regulators in the European Union and the United Kingdom. The termination of the deal included a $1 billion reverse termination fee paid by Adobe to Figma.
In April 2025, Figma confidentially submitted a draft registration statement to the U.S. Securities and Exchange Commission , signaling its intent to go public. While the company has not disclosed the number of shares to be offered or the anticipated price range, it was valued at $12.5 billion in a secondary share sale in 2024. This valuation was supported by investments from firms such as Fidelity, Franklin Venture Partners, Sequoia Capital, and Andreessen Horowitz.
Founded in 2012 by Dylan Field, Figma has developed a cloud-based design platform that enables real-time collaboration among users. Its tools are widely used for designing and testing digital products, with a client base that includes major companies like Google, Uber, Spotify, and Adobe itself. The platform’s emphasis on accessibility and collaborative features has distinguished it in the competitive design software market.
Figma’s financial health appears robust, with reports indicating that the company is cash-flow positive. It has also expanded its offerings to include artificial intelligence features and enhanced team collaboration tools, aiming to cater to a broader range of users beyond traditional designers.
The broader IPO market, particularly for technology firms, has been subdued due to economic uncertainties, including trade policies and tariff-related disruptions. Several high-profile IPOs have been delayed or scaled back in response to these conditions. Despite this, Figma’s move to pursue a public listing suggests confidence in its business model and growth prospects.
Morgan Stanley’s role as the lead underwriter underscores the significance of Figma’s IPO. The investment bank’s involvement is expected to provide strategic guidance and support as Figma navigates the complexities of going public in a challenging market environment.
Figma’s journey to this point has included multiple funding rounds, with significant investments from prominent venture capital firms. The company’s ability to attract substantial investment and maintain a strong valuation reflects investor confidence in its long-term potential.