Cloud-based design tool company Figma has announced a tender offer that will allow investors, including current and former employees, to sell their shares. The company’s valuation currently stands at $12.5 billion, which is a 25% increase from its 2021 fundraising valuation. However, this figure is lower than the $20 billion acquisition offer that Adobe made in 2022, which was eventually called off due to regulatory scrutiny. The tender is expected to range between $600 million and $900 million, with support from over 25 current and new investors, including A16z, Sequoia, and Kleiner Perkins.
Figma’s software is widely used by tens of thousands of employees within companies such as Microsoft, Google, Oracle, and Salesforce, with Microsoft reportedly spending millions per year on Figma’s deployment. In June 2021, Figma was valued at $10 billion during a funding round that included participation from Morgan Stanley’s Counterpoint Global. However, following the market plunge in 2022, which saw many cloud stocks decline by more than half, the company’s valuation and fundraising activity were affected.
Adobe initially expressed interest in acquiring Figma, writing that the combination of the two companies would bring about a new era of collaborative creativity. However, the planned acquisition was called off in December, with Adobe agreeing to pay Figma a $1 billion breakup fee. Despite not moving forward with the acquisition, Figma continues to operate independently, offering its cloud-based design tools to a wide variety of companies and users. The company’s decision to hold a tender offer reflects its ongoing growth and strategy for providing liquidity to its investors and stakeholders.
Figma’s latest valuation of $12.5 billion demonstrates strong investor interest and confidence in the company’s cloud-based design tools. The support from both current and new investors, including well-known firms like A16z, Sequoia, and Kleiner Perkins, indicates a bright future for the startup. The widespread adoption of Figma’s software by major companies such as Microsoft further underscores its significance in the design and collaboration space. Despite the setback of the failed acquisition by Adobe, Figma remains focused on innovation and expansion in the industry.
The tender offer by Figma, with an expected range of $600 million to $900 million, will provide an opportunity for investors to liquidate their shares and realize their investments in the company. This move reflects Figma’s commitment to its stakeholders and its willingness to provide liquidity and support to its investors. As the company continues to grow and expand its offerings, the tender offer signals a new phase of growth and potential for Figma in the competitive design software market. With the backing of major investors and a valuation of $12.5 billion, Figma is poised for continued success and innovation in the industry.
