Figma IPO could value design software maker at $16 billion

Company Overview - Figma, a design software company, has published an updated prospectus for its initial public offering (IPO) [1] - The company plans to sell approximately 37 million shares at a price range of $25 to $28 each, potentially generating up to $1 billion in proceeds [1] Valuation Insights - The IPO could result in a fully diluted valuation for Figma between $14.6 billion and $16.4 billion [2] - Co-founder Dylan Field intends to sell 2.35 million shares, which could be valued at as much as $65.8 million [2] - In a 2024 tender offer, investors valued Figma at $12.5 billion, while Adobe previously agreed to acquire the company for $20 billion in 2022 before the deal was halted by regulatory objections [2] Industry Context - The flow of technology companies going public in the U.S. has slowed since late 2021 due to concerns over inflation and recession, leading to decreased investor interest in fast-growing but unprofitable companies [3] - Despite the slowdown, some technology stocks have recently gone public, including CoreWeave in March and Circle and Chime in June [3]