For years, designers and developers have struggled with siloed tools and frustrating workflows that slowed down creativity. Figma changed that. By launching a browser-based platform that supports real-time collaboration, Figma made designing and prototyping as seamless as working in a shared Google Doc. Now, the company is headed for what could be one of 2025’s biggest tech IPOs, with analysts expecting it to raise up to $1.5 billion.
Backed by strong financials, Figma reported $749 million in revenue for 2024, up 48% year over year. In Q1 2025 alone, the company posted $228.2 million in revenue, a 46% annual increase, while net income tripled to $44.9 million. These figures, combined with its 91% gross margin and return to profitability, position Figma as one of the most attractive public debuts in the design-tech space.
Founder-Led Vision and a Transparent IPO Strategy
Figma’s S-1 filing offers a closer look into the company’s strategy and structure. CEO Dylan Field will retain control post-IPO through a dual-class share setup, with Class B super-voting shares giving him about 75% of voting power. Though co-founder Evan Wallace’s family trust owns a third of these shares, Field controls the votes, ensuring alignment and fast decision-making in the years ahead.
Notably, the S-1 discloses a large 2024 tender offer, where Field sold $20 million worth of shares. While this liquidity move helped reward employees and boost morale, it could raise investor questions around insider confidence.
Still, Figma maintains a healthy balance sheet with minimal debt, holding only a revolving credit line. The company signaled potential future debt activity, but its current financial discipline is likely to reassure IPO investors.
How Figma Redefined Design Collaboration
Figma started in 2012 when Field and Wallace, both computer science students from Brown, set out to fix what they saw as a broken design process. Traditional tools were clunky, offline, and built for solo work. Figma’s mission was bold but clear: make design accessible, collaborative, and cloud-based.
Their solution was a game-changer. Figma allows designers, developers, and stakeholders to work on the same file in real time, no downloads needed. It promotes creativity while removing barriers like file version conflicts and tool switching. Over time, the company built a rich platform with:
- Real-time multi-user editing and commenting
- Built-in prototyping and developer handoff tools
- Reusable design systems for consistency
- Robust version control
- A thriving community and plugin marketplace
This collaborative approach has reshaped how teams build digital products — from startups to enterprise giants.
AI Ambitions and the Competitive Edge
To stay ahead, Figma is betting big on AI. Its recent acquisition of Modyfi, a motion design and generative AI startup, reflects the company’s push toward AI-powered design automation. These tools will help users speed up workflows, generate creative assets, and even translate designs directly into usable code.
The design tool space is heating up, with rivals like Sketch, Adobe XD, Framer, and AI-native platforms like Lovable all vying for attention. Figma acknowledges in its IPO filings that maintaining its edge will be tough as AI evolves rapidly — a rare moment of transparency that adds credibility to its public pitch.
Yet, Figma’s early adoption of cloud-native collaboration and quick integration of AI give it an undeniable head start. Investors still recall Adobe’s failed $20 billion acquisition attempt in 2022, which not only validates Figma’s long-term potential but also helps define market expectations.
What to Expect Post-IPO
With more than half of its revenue already coming from outside the U.S., Figma plans to expand internationally, especially into sectors like government contracts, where it’s pursuing FedRAMP certification. The company is also eyeing new markets such as no-code website builders and AI-driven design-to-code platforms, making clear that it sees itself as more than just a design tool.
The IPO proceeds will help fund R&D, fuel M&A, reduce existing liabilities, and support global growth. Field’s continued control ensures a steady hand at the wheel as Figma enters a new era of scale and independence.
Though the S-1 doesn’t confirm an exact valuation, estimates suggest a $15–$20 billion post-IPO market cap — a figure that aligns with investor excitement and secondary market chatter.
