Figma’s (FIG) IPO wasn’t just huge; it effectively torched the playbook.
A massive 50% first-day pop in the current stock market was remarkable, and in many ways, it has supercharged the IPO market.
That kind of breakout rarely goes unnoticed, especially not by a design giant quietly sitting on a whopping $42 billion private valuation.
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Though it hasn’t yet pulled the trigger on an IPO, fresh investor demand and in-house share sales show that the wheels are turning.
Hence, Figma cracked open the IPO window, and another heavyweight is getting ready to push through with purpose.
A design giant quietly raises its valuation to $42 billion, fueling fresh IPO speculation.
Image source: Bloomberg/Getty Images
What’s an initial public offering (IPO)?
An IPO is essentially a company’s big debut, when a private business looks to tap into the public market, letting anyone buy shares. It’s the moment the doors open and the public can get in on the action.
However, IPOs aren’t always smooth rides.
Early trading could be volatile, especially as the stock’s price is based on demand expectations, not on a trading history.
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For this reason, shares are typically limited with a tight float, and hype can lead to day-one “flipping,” where early buyers sell swiftly to lock in quick gains.
Add in future lock-up expirations (typically 90 to 180 days post-IPO), and you get more waves ahead as insiders jump ship. The “3-day rule” isn’t law, but it’s common wisdom whereby you let the stock settle for a few sessions before jumping in.
Canva’s $42 billion valuation hints at growing IPO readiness
Australia-based Canva just launched a new employee share sale, which effectively takes its valuation to a massive $42 billion, up from $32 billion in 2024 (a sharp 30% bump).
The offer, which its management deems “significantly oversubscribed,” has attracted healthy demand from top-tier institutional investors, including Fidelity and JPMorgan Asset Management.
For perspective, this isn’t Canva’s first run at a liquidity event.
It facilitated a $1.5 billion secondary sale last year with Goldman Sachs and Morgan Stanley, but this time opted to run the deal in-house, signaling growing financial maturity.
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Additional signals stack up, too, with the software design giant hiring ex-Zoom CFO Kelly Steckelberg, who’s a seasoned public-market operator. Also, its co-founders have maintained that an IPO will come “at the right time.”
Canva at a glance
Canva is an incredibly popular browser-based design platform built for non-designers and professionals alike.
Canva’s popular, easy drag-and-drop tools handle everything from Instagram posts to pitch decks. And now, with a shot of AI with tools like Magic Design and Magic Edit, it has become a must-have for teams, startups, and solo creators alike.
It currently boasts 40 million monthly active users (220 million monthly visitors) with $3.3 billion in annualized sales, along with a deep penetration across global enterprise clients.
2025 IPO market snapshot
After a couple of sluggish years, the U.S. IPO window is officially on the comeback trail in 2025.
We’ve already seen 137 deals, which is inching close to last year’s full count of 150, with proceeds sitting at $22.6 billion, steady with last year.
What’s got people excited isn’t just volume, but also quality. Bigger deals, valued at $100 million plus, are popping 19% on day one, the best stretch since 2020.
Moreover, Q2 IPOs have surged 16% year-over-year, pulling in $8.1 billion, as healthy momentum builds into Q3, with tariff noise cooling off somewhat.
The three IPOs defining 2025’s comeback run
Three IPOs have effectively done most of the heavy lifting in 2025.
First up, we have Nvidia-backed CoreWeave (CRWV) , which has raised about $1.5 billion at a $23 billion valuation in March and turned out to be the biggest raise of the year, even with terms dialed back.
Then we had Figma in July, pulling in $1.22 billion with a monster software debut, which lit up interest in high-growth tech.
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Rounding it out was Circle (CRCL) , a stablecoin giant that issued 34 million shares at $31, scooping up $1.05 billion in June and marking crypto’s return to public markets.
Collectively, you’ve got AI infrastructure, flagship SaaS, and crypto plumbing, drawing tremendous investor heat, despite a tricky investing environment.
Figma’s IPO: what happened and why it matters
Figma’s IPO was wild, to say the least.
The browser-based design juggernaut hit Wall Street on July 31, 2025, and came out swinging for the fences.
Priced at $33, it opened at an eye-catching $85, closing out Day One at $115.50, a monster 250% pop.
To be fair, Figma had the numbers to back the hype, boasting $749 million in sales last year, up 48% year-over-year, with 13 million monthly users.
Also, it posted a clean $45 million Q1 profit, shaking off one-time losses from its scrapped Adobe deal.
The stock has cooled off since then, sitting at around $69.40 currently, but that’s still +110% above the IPO price.