Wall Street’s appetite for high-growth tech stocks is heating up again, and one rising star has taken full advantage.
A fast-growing AI-powered platform, widely used by product development and design teams, wrapped up the roadshow for its proposed IPO last week — and the market response has been anything but ordinary.
Only a few days ago, the company raised its initial public offering range from between $25 and $28 to between $30 and $32 per share, in a clear signal that investor demand was surging.
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Ultimately, the stock priced at $33 per share, $1 per share above even the revised range.
That company? Figma (FIG), a collaborative design and product development platform that has transformed from a sleek web-based design tool into a powerful, AI-enabled software engine for product teams.
On July 31, Figma made its public market debut on the New York Stock Exchange. Shares opened at an incredible $85, quickly surged past $112, and ultimately closed at $115.50, marking a 250% gain on its first day as a public company and pushing the company’s market capitalization to nearly $68 billion.
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Figma: from acquisition target to market darling
Figma’s journey to the public markets has been anything but conventional. Back in 2022, Adobe agreed to acquire the company for $20 billion. But that deal was scrapped a year later following pushback from UK antitrust regulators, who warned the merger would stifle competition and hurt innovation in the design software market.
Rather than folding, Figma doubled down on product development and growth. The company now boasts over 13 million monthly users, with a customer base that includes Google, Microsoft, Netflix, and Uber.
Its appeal extends far beyond traditional designers, with more than two-thirds of its users being non-designers, including engineers, marketers, and product managers who collaborate using the platform’s connected toolsets.
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In its S-1 filing, Figma revealed second-quarter revenue of $247 million to $250 million, representing 40% year-over-year growth, and up to $12 million in operating income.
More than 1,000 enterprise customers pay the company over $100,000 per year, underscoring its momentum at the high end of the market.
Collaborative design and product development platform Figma made its public market debut on the New York Stock Exchange.
Image source: Weiss/Getty Images
Figma’s IPO could rejuvenate the market
The offering raised $1.2 billion, though the majority of proceeds went to existing shareholders, including venture capital backers like Greylock Partners, Index Ventures, Kleiner Perkins, and Sequoia Capital.
Still, the size and enthusiasm surrounding the IPO are being seen as a watershed moment for tech listings in 2025.
New York Stock Exchange President Lynn Martin said Figma’s stunning performance could be a catalyst for a wave of new public offerings. “Given that Figma did so well with their pricing last night, and there is so much demand that has persisted in the order book this morning for this company, I think this will open the floodgates,” she stated in a recent CNBC interview.
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Why Figma is more than just a design tool
Founded in 2012 and based in San Francisco, Figma has evolved into a full-stack collaboration engine. Its platform covers everything from digital whiteboarding to prototyping, interface design, and even developer handoff.
With AI tools now embedded in the product experience, Figma is helping teams effectively transition from ideas to product launches faster and more cohesively.
If the company’s IPO is any indication, investors are betting that Figma is far more than a design startup. Time will tell whether it proves to be the next great software infrastructure company in the age of collaborative, AI-driven product development.
But after its stellar public debut, it now has plenty of cash, visibility, and momentum to prove it.