On Thursday, the valuation of the design tool creator Figma saw a stunning and significant rise of more than 250% to close at over $117 per share. This increase followed the successful fundraising of the company, which was more than $1.2 billion through its IPO (initial public offering), therefore exceeding the Figma’s stock predicted range of $30 to $32 given in SEC documents earlier this week. Dylan Field, the 33-year-old CEO of the firm, has thus achieved the status of a billionaire.
Field, a former Thiel Fellow, started working on the project with his Brown University friend Evan Wallace in 2012 to create Figma. In 2015, the firm debuted a closed beta release of its offering. Through its web browsers, Figma intends to offer users a complete set of design tools that are accessible to them. Nevertheless, UK authorities have stopped Adobe’s bid to buy Figma’s stock, citing worries that such a merger would give the design software industry too much market dominance and stifle competition.
As experts at Charles Schwab see a possible rebound in the IPO market, the successful launch of Figma is among the most notable first public offerings of this year. They have also emphasized other successful technology IPOs this year as indications that the market may be on the verge of recovery, noting that years of high interest rates have contributed to the protracted decline in IPO activity. Especially successful has been the artificial intelligence firm CoreWeave, which debuted on the market in March.
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Still in charge of 99% of Class B shares is Field, along with his co-founder Evan Wallace, who left the firm in 2021. These Figma’s stocks have fifteen times the voting strength of Class A shares. Holding nearly 74% of the total voting rights lets the founders have a hold and keep considerable control over the business.