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Economic Times
01-08-2025
- Business
- Economic Times
Figma IPO and stock reaction: All you need to know
Agencies Figma has become the latest major tech company to go public. On its first day of trading on the New York Stock Exchange, the stock surged 250%.The design software company and some of its existing investors sold 36.9 million shares at $33 each, beating the expected price range of $30-32. The price range had been raised from $25 to $28 earlier in the week due to strong demand. This IPO comes more than a year after Figma's planned $20 billion acquisition by Adobe was blocked by regulators, who said the deal could reduce competition in the market. Now trading under the ticker 'FIG', Figma's shares closed at $115.50 on Thursday (US time), giving it a market valuation of $67.7 billion. This is more than three times what Adobe had the Adobe deal, Danny Rimer, partner at Index Ventures and a member of Figma's board, wrote in a blog post: 'The world got to know Figma on a whole new level in 2022, when Adobe announced plans to acquire the company for $20 billion. That moment came with intense pressure and a spotlight few founders ever face.''Dylan remained his usual grounded, transparent self,' he wrote. Dylan Field is Figma's CEO and cofounder, and now holds a stake valued at over $6 billion.'When the deal fell through a year later, he didn't flinch. He turned the page and got right back to building,' Rimer public offering brought in $1.2 billion, though two-thirds will go to existing investors. Most of their shares are now subject to a lock-up period of 180 days, meaning all of the current value is just on paper, and the big stock sales can't happen until the quarter that ended in March, Figma's revenue rose by 46% to $228.2 million, while net income tripled to $44.9 million, according to a report by CNBC. Company profile Figma is best known for its cloud-based platform, which allows teams to collaborate on interface designs in real time, much like using Google Docs. But it has since expanded its services beyond design to include tools for website creation, AI programming, branded marketing, and digital in 2012 by Field and Evan Wallace, Figma has major global brands, including Netflix, Duolingo, Mercado Libre, Stripe, ServiceNow, and Pentagram Design, as its customers. Top Indian companies such as Zomato, Swiggy, Cred, and Groww also use the platform. Last November, Field told ET that the company is very interested in expanding its presence in India. He said around 85% of Figma's weekly active users are based outside the US, with a significant portion in India. 'There is a real revenue opportunity in India. It is a myth that you cannot monetise India,' Field had said. He added that the more time Figma spends in India, the better it will be at improving its services for the country's users. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. US tariff hike to hit Indian exports, may push RBI towards rate cuts Is Bajaj Finance facing its HDFC Bank moment? Tata Motors' INR38k crore Iveco buy: Factors that can make investors nervous Trump tariffs: End of road or a new journey ending Russia reliance? Stock Radar: PI Industries stock showing signs of momentum; takes support above 50-DEMA – time to buy? Long-term investing: Volatility, even threats, have limited shelf life; 5 large-caps from different sectors with upside potential of up to 38% These large- and mid-cap stocks can give more than 21% return in 1 year, according to analysts Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus
Time of India
01-08-2025
- Business
- Time of India
Figma IPO and stock reaction: All you need to know
Academy Empower your mind, elevate your skills Figma has become the latest major tech company to go public. On its first day of trading on the New York Stock Exchange , the stock surged 250%.The design software company and some of its existing investors sold 36.9 million shares at $33 each, beating the expected price range of $30-32. The price range had been raised from $25 to $28 earlier in the week due to strong IPO comes more than a year after Figma's planned $20 billion acquisition by Adobe was blocked by regulators, who said the deal could reduce competition in the trading under the ticker 'FIG', Figma's shares closed at $115.50 on Thursday (US time), giving it a market valuation of $67.7 billion. This is more than three times what Adobe had the Adobe deal, Danny Rimer, partner at Index Ventures and a member of Figma's board, wrote in a blog post: 'The world got to know Figma on a whole new level in 2022, when Adobe announced plans to acquire the company for $20 billion. That moment came with intense pressure and a spotlight few founders ever face.''Dylan remained his usual grounded, transparent self,' he wrote. Dylan Field is Figma's CEO and cofounder, and now holds a stake valued at over $6 billion.'When the deal fell through a year later, he didn't flinch. He turned the page and got right back to building,' Rimer public offering brought in $1.2 billion, though two-thirds will go to existing investors. Most of their shares are now subject to a lock-up period of 180 days, meaning all of the current value is just on paper, and the big stock sales can't happen until the quarter that ended in March, Figma's revenue rose by 46% to $228.2 million, while net income tripled to $44.9 million, according to a report by is best known for its cloud-based platform, which allows teams to collaborate on interface designs in real time, much like using Google Docs. But it has since expanded its services beyond design to include tools for website creation, AI programming, branded marketing, and digital in 2012 by Field and Evan Wallace, Figma has major global brands, including Netflix, Duolingo, Mercado Libre, Stripe, ServiceNow, and Pentagram Design, as its Indian companies such as Zomato Swiggy , Cred, and Groww also use the platform. Last November, Field told ET that the company is very interested in expanding its presence in India. He said around 85% of Figma's weekly active users are based outside the US, with a significant portion in India.'There is a real revenue opportunity in India. It is a myth that you cannot monetise India,' Field had said. He added that the more time Figma spends in India, the better it will be at improving its services for the country's users.
CNBC
31-07-2025
- Business
- CNBC
Figma's top VCs are sitting on $24 billion worth of stock after massive IPO pop
You can almost smell the bubbly wafting across Silicon Valley. Following Figma's blockbuster market debut on Thursday, four of the most iconic names in venture capital — Index Ventures, Greylock, Kleiner Perkins and Sequoia — are collectively sitting on roughly $24 billion worth of the design software vendor's stock. Until recently, there's been little reason to celebrate. From late 2021, when soaring inflation and rising rates pushed investors out of risky assets, until the middle of 2025, tech IPOs were few and far between, and many of the companies that managed to make it out failed to impress Wall Street. That's left venture firms with scarce returns for the pension funds, endowments and foundations they rely on for funding. The mood is noticeably brighter these days as the Nasdaq trades near a record. Figma is the latest, and perhaps most high-profile, tech company to hit the market, and Wall Street appears to want more. After raising its price range this week and then pricing $1 above the top of that range, Figma shares soared 250% in their first day on the New York Stock Exchange. Investors will admit they got lucky. Figma was supposed to get acquired for $20 billion by Adobe, an agreement the two companies forged in 2022. But the following year, the transaction collapsed after U.K. regulators said the tie-up would harm competition. Figma is now worth more than three times what Adobe was going to pay, closing on Thursday with a market cap of almost $68 billion. CEO Dylan Field, who co-founded the company in 2012, owns a stake worth over $6 billion. Danny Rimer, a partner at Index Ventures and Figma board member, wrote in a blog post on Thursday that the failed acquisition came with "intense pressure and a spotlight few founders ever face." "Dylan remained his usual grounded, transparent self," wrote Rimer, whose firm first bet on Figma in 2013 and is the biggest shareholder, with $7.2 billion worth of stock in the company. "When the deal fell through a year later, he didn't flinch. He turned the page and got right back to building." Figma's offering raised $1.2 billion, with two-thirds of the proceeds going to existing investors. Other than the small slug of stock each of the venture firms sold at $33, the rest of their holdings are subject to a lock-up period, meaning all of the current value is currently just on paper. The vast majority of outstanding shares are locked up for 180 days, so big stock sales can't happen until January. Stablecoin issuer Circle went public in June, and is the other tech IPO that's generated hefty returns for VCs recently. The shares were initially sold at $31 each and are now trading at over $183, leaving investment firms IDG Capital, General Catalyst, Accel and Breyer Capital with a combined stake of close to $12 billion. Circle doubled on its first day of trading. While IPO pops generate a lot of buzz and dramatically lift the value of investors' holdings, they're not universally celebrated. Bill Gurley of Benchmark has for years been a critic of such first-day gains, arguing that bankers leave money on the table for the company while handing deeply discounted stock to new investors. In a series of posts on X on Thursday, Gurley described the Figma outcome as "expected & fully intentional." "Who benefits?" Gurley wrote, shortly after the stock began trading. "The large clients of the investment banks (who return the favor paying for other services). They bought it at $33 last night and can sell it today for over $90." Still, the exuberance in the market is welcome news for most VCs. After a record year in 2021, which saw 155 U.S. venture-backed IPOs raise $60.4 billion, every year since has been relatively dismal, according to data from University of Florida finance professor Jay Ritter. There were 13 such offerings in 2022, followed by 18 in 2023 and 30 last year, collectively raising $13.3 billion, Ritter's data shows. The slowdown followed the Federal Reserve's aggressive rate-hiking campaign in 2022, meant to slow crippling inflation. As the lower-growth environment extended into years two and three, venture firms faced increasing pressure to return cash to investors. Earlier this year, the exit environment was still looking ominous. After President Donald Trump's announcement of sweeping tariffs in April, companies including online lender Klarna and ticket marketplace StubHub delayed their IPO plans. The Nasdaq plummeted 10% in a week, as investors fretted over the potential of rising import costs and supply chain disruptions. But Trump later walked back his threats and the trade deals he's landed have resulted in lower tariffs than previously feared. CoreWeave, a provider of artificial intelligence infrastructure, went public just before Trump's initial plans were announced. The stock is now almost triple its IPO price, closing on Thursday at $114.13, though that's down about 38% from its high in June. CoreWeave and Circle have both been big wins for investors, with their market caps now at about $56 billion and $41 billion, respectively. Figma is worth even more. Lynn Martin, president of the NYSE, told CNBC's "Squawk on the Street" on Thursday that she thinks the Figma offering "will open the floodgates." Figma's early investors and big financial winners all published glowing blog posts about Field and the journey he's been on with the company that he started after dropping out of college in 2012. "Figma's relentless focus on product, community, and craft has reshaped how the world designs," wrote Greylock's John Lilly in a post on Thursday. His firm led the $14 Series AI investment in 2015 and now owns a stake worth about $6.7 billion. Kleiner Perkins led the $25 Series B, which was announced in 2018. Its holdings are now valued at $6 billion. "The product was still early, but the love from its small community of users was unmistakable," wrote Kleiner partner Mamoon Hamid, in his post after the IPO. "We were convinced that Figma had the potential to fundamentally reshape how digital products would be designed, and knew we had to be part of it." Two years later, venture powerhouse Sequoia stepped in to lead Figma's $40 million Series C round. Sequoia's Andrew Reed wrote at the time that the company had "the talent and culture to build an enduring, fundamental company." On Thursday, with his firm's stake in Figma approaching $3.8 billion, Reed took to X for his congratulatory remarks. "Congrats to the incredible @Figma team," Reed wrote. "The most creative, determined, imaginative, and positive group of people. I'm just so happy for all of your success."
BBC News
06-05-2025
- Business
- BBC News
Deliveroo deal shows UK still can't hang on to big firms
The takeover of Deliveroo by its US counterpart DoorDash is an illuminating example of the differing fortunes and attractions of US and UK stock and DoorDash are similar started out as food delivery services offering customers convenient and speedy access to their favourite restaurants and offering restaurants the ability to more fully utilise the capacity of their extended their offerings to include other convenience shopping items – like nappies, flowers and pet raised money by selling shares to the public in an initial public offering (IPO) around the same time – Deliveroo on the London stock market, DoorDash on the New York Stock then their fortunes have dramatically Deliveroo listed its shares in London, DoorDash was worth five times as much as its UK counterpart. Four years later DoorDash is now worth 35 times as much. This is not a perfect comparison as DoorDash has issued more shares to raise money to expand over time which would boost its total value – its market capitalisation. But the appetite for shares in the US company meant that it could successfully raise that money on US look at another measure – the price of each investor who bought a share of DoorDash has seen its value rise 84%.An investor who bought a share of Deliveroo has seen its value fall 56%.What this means is that DoorDash is now in a position to use its greater financial heft to take over its UK rival – just as Deliveroo is finally turning a of Deliveroo's first backers, Danny Rimer of Index Ventures, told the BBC in 2023 that if he had his time again he would have voted for a US listing, and people close to the company agree that the current takeover bid was partly enabled by DoorDash's access to US capital markets. This is just one example which helps explain a wider problem. Companies are increasingly shunning the London stock market in favour of a US are many valuation. The 500 largest publicly traded US companies (S&P 500) are worth, on average, 28 times the profit they make in a year. The 100 largest publicly traded UK companies (the FTSE 100) sell for 12 times their yearly earnings. Less than can there be such a huge disparity?Partly because the US is home to most of the world's most successful and profitable companies – the so-called Magnificent Seven (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla)Take those out and shares trade at 20 times earnings – still a massive premium to the of the other reasons UK valuations lag is old-fashioned lack of investors' appetite for UK stocks has the last 30 years, the share of the UK market owned by UK financial institutions has shrunk from 50% to less than 5%. This is partly because financial regulation has encouraged pension funds to buy less risky investments like government it's also partly because the managers of those pension funds think they will get better returns investing in US markets – and they have been dead just the last five years, the total return including dividends on investing in US shares has been 116% while the same number for the UK is 45%. Positive comments But there are changes government's so-called "Edinburgh Reforms", designed to make listing in the UK more attractive, included reducing the proportion of a company available for sale to the public and retaining more voting power for founders who wanted to keep control of the company even as they sold stakes to have also been positive comments on the attractiveness of the UK from financial giants like Larry Fink of BlackRock and Jamie Dimon of JP both noted the UK looks undervalued and the UK market has outperformed the US so far this secret that UK stocks are cheap has been out there for some time. That is precisely why private buyers from the US and elsewhere have swooped on UK-listed companies meaning they disappear from the UK stock some of the biggest ones left are considered candidates for a move. Shell boss Wael Sawan told the BBC that while he had "no immediate" plans to move, he and his company "got a very warm welcome" when they held their big reception for investors in New York. Shell trades at a 35% discount to its US-listed peers and many of its shareholders aren't happy about the DoorDash swoop on Deliveroo seems to highlight once again is that companies listed in the US can summon greater financial firepower with which to expand or acquire their will join the likes of Arm Holdings, Morrisons, CRH Holdings, Ultra, Meggitt and many others as companies who used to be listed on the London Stock Exchange. Does it matter? Pension funds, or individual investors, can buy shares whether they are listed in the UK, US or one of the European a UK listing generates significant ancillary business for a UK financial services industry that still makes up more than 10% of the UK's entire economy and contributes more than 10% of all taxes paid lawyers, financial PR firms and others feed off the fees that UK listings on the London Stock Exchange is dwarfed by the trading of currencies, bonds and complex contracts but it has always been a centre of gravity for financial activity and one which many argue has lost its power to attract.
