Table of Contents
- Figma's IPO: A Cash-Out, A Power Play, and a Signal to the Tech World
- What happened at Figma?
- Why is this significant?
- Why UX designers should care about this IPO
- The industry’s mixed reactions
- Some hailed it as a triumph:
- Others were more skeptical:
- What Figma's IPO tells us about founder control
- Liquidity-starved VCs are breathing again
- The ripple effect: Who’s next?
- What this means for the rest of the market
- Takeaways for design founders and investors
- Figma's IPO is a mirror
Figma's IPO: A Cash-Out, A Power Play, and a Signal to the Tech World

What happened at Figma?

- CEO Dylan Field sold 2.35 million shares, netting over $62 million at the midrange IPO price.
- Field will retain 74% of voting control post-IPO, thanks to supervoting shares and voting rights tied to co-founder Evan Wallace’s stock.
- VC firms like Sequoia, Index, Greylock, and Kleiner Perkins are also cashing out, selling millions of shares each.
- Existing shareholders are offloading almost twice as many shares as the company itself is selling (24.7M vs 12.5M).
- If the demand continues, an additional 5.5 million shares might also hit the market from insiders.
Why is this significant?
Why UX designers should care about this IPO

- Design roles will likely see increased investment
- More design tools and UX software startups will pop up
- Enterprise design spending will grow as companies see design as strategic
The industry’s mixed reactions
Some hailed it as a triumph:
- "Figma’s IPO is the spark the tech IPO market needed," said one venture partner who wished to remain anonymous. "It gives late-stage startups hope again."
- For Forerunner Ventures founder Kirsten Green, it signals a mindset shift: "An IPO is the Series A of being in the public market" (Fortune).
Others were more skeptical:
- The float (shares available to trade) was tiny compared to total outstanding shares, just 42.5M out of 400M+. That scarcity, some argued, artificially inflated the stock.
- The IPO pop felt eerily similar to Snowflake’s 2020 IPO, which skyrocketed early but then lost ground and never fully recovered.
What Figma's IPO tells us about founder control
- 15x supervoting shares give him a near-monopoly on company decisions.
- He can vote not just his own shares, but also co-founder Evan Wallace’s.
Liquidity-starved VCs are breathing again
- Sequoia and others are taking money off the table while keeping their larger stakes intact.
- That provides a partial exit, allowing firms to return capital and show paper gains.
The ripple effect: Who’s next?
- HeartFlow, a med-tech company, filed an S-1 just days after Figma’s debut.
- Chime recently went public with a 37% first-day pop.
- Investors point to Canva as the most obvious candidate.

- $3B annual revenue
- 35% YoY growth
- Recently valued at $37B during a share buyback
What this means for the rest of the market
- The IPO market is back, but cautiously. Demand exists, but it’s selective.
- Founders are designing their terms. Control matters more than ever.
- AI sells. Figma’s integrated AI capabilities made it more attractive.
- Float manipulation is a double-edged sword. Scarcity can drive hype and volatility.
- Liquidity events are survival mechanisms. VCs aren’t just celebrating, they’re recovering.
Takeaways for design founders and investors
- Control your narrative. Figma used a high-control, low-float structure to tell the story they wanted.
- Think liquidity. An IPO isn’t just about capital. It’s about giving investors and employees some return.
- Leverage AI, if you have it. Investors are hungry for software with an AI edge.
- Prepare for volatility. The initial pop may fade. Snowflake’s story proves that.
- The window is open. If you’ve dreaming of your design tool to go public, Figma just made it a little easier.
Figma's IPO is a mirror
- A thirst for liquidity after years of drought
- A new normal where control outweighs cash
- A market hungry for AI, clarity, and growth
- Bloomberg, “Figma’s $1.2 Billion IPO Approaching 40 Times Oversubscribed,” July 29, 2025.
- Fortune, “Figma’s IPO Resurrects IPO Pop Debate,” August 4, 2025.
- TechCrunch, “Figma’s Dylan Field Will Cash Out $60M in IPO,” July 21, 2025.
- The Motley Fool, “Figma’s IPO Was a Blockbuster—Should You Chase the Surge?” August 5, 2025.
- Fortune, “Who’s Next After Figma? The IPO Pipeline is Heating Up,” August 4, 2025.