“To make design accessible to everyone”

Figma is a cloud-based design and prototyping tool widely used for user interface (UI) and user experience (UX) design. It is known for its real-time collaboration, allowing multiple team members to work together on the same project from any device with a web browser. Figma offers powerful vector editing, prototyping, design systems, and developer handoff features, making it a preferred choice for designers and teams working on websites, apps, and digital products. Its ease of use, versatility, and platform independence have helped revolutionize the design process for both individuals and organizations.

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Business Model

Figma uses a subscription-based, freemium business model for its core design platform and FigJam, offering free and paid tiers with flexible seat management. Users can choose from three seat types viewer, viewer-restricted, and full, but only full seats are billed, while viewers and viewer-restricted users are free. The free plan provides basic design and collaboration features with limitations, while paid plans (Professional, Organization, Enterprise) unlock advanced capabilities such as unlimited files, team libraries, and enhanced admin controls. FigJam follows a similar structure, with its own free and paid plans. Figma also generates revenue through its community marketplace, where it takes a percentage of sales from paid assets and offers discounted plans for students and educators. This model allows Figma to attract a broad base of individual users and scale up to serve large enterprises, making it a leading collaborative design platform globally

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Scale and Growth

Figma has grown rapidly to become a global leader in collaborative design software, surpassing $700 million in annual revenue and 13 million monthly active users by 2025. Its user base extends well beyond designers to include product managers and engineers, and it is widely adopted by major enterprises like Microsoft and Google. Continuous innovation, especially in AI-powered tools, has fueled Figma’s expansion and strong market presence, with an anticipated IPO set to further boost its industry influence.

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IPO and Future Outlook

Figma has filed for its IPO in July 2025, aiming to raise up to $1.5 billion and list under the ticker FIG. The company boasts strong financials, with $749 million in 2024 revenue and industry-leading margins. Figma’s rapid growth is fueled by product innovation, especially in AI-powered design tools, and a diverse, global customer base. The IPO follows the collapse of Adobe’s acquisition and positions Figma for further expansion. Analysts expect Figma’s public debut to be one of the most significant tech IPOs of the year, with a strong outlook for continued market leadership.

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Competitive Edge

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Figma’s competitive edge comes from its real-time, cloud-based collaboration, allowing seamless teamwork from anywhere and any device. Its rapidly expanding suite including AI-powered tools and integrated features for design, prototyping, and developer handoff centralizes the entire product creation process. Combined with a strong community ecosystem and continuous innovation, Figma remains the leading choice for modern, collaborative digital design.

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Targeted Impact

Figma’s evolution and strategic milestones have created a broad, transformative impact across a diverse set of audiences, fundamentally changing how design and collaboration happen in the digital age.

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What Comes Next?

Figma’s next chapter is defined by AI-powered creation, seamless web publishing, advanced illustration tools, and a unified platform that brings together design, development, and marketing all aimed at making digital product creation faster, more collaborative, and accessible to everyone.

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Who will benefit?

Figma’s platform continues to broaden its impact, making modern, collaborative design accessible and valuable for professionals, teams, educators, and creative communities across diverse sectors.

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Figma's Timeline

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Prominent News

Figma files for IPO: What you need to know, July 2, 2025 - Figma (FIGM.PVT), a web design platform that operates in the cloud and facilitates collaboration, has submitted paperwork for an initial public offering (IPO) on the New York Stock Exchange (NYSE). Click here to read more.

When CMS Meets UX Design: What Figma’s Payload Deal Really Means, July 2, 2025 - Figma has revealed its purchase of Payload, an open-source headless content management system and application framework based in the United States. Click here to read more.

Figma launches AI tool for building apps and websites, May 09, 2025 - The design application Figma has unveiled a variety of new features, including an AI tool known as Figma Make that is capable of creating websites and apps. Click here to read more.

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Revenue

Figma's revenue in 2024 reached $749M, marking a 48.02% increase from $506M in 2023.

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Return on Investment (ROI)

ROI computed as of July 7, 2025 based on PM Insights' composite price.

PM Insights computes composite price based on institutional-sized broker contributions within the last 90 days if there are at least two qualified contributions.

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Funding Round in USD

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Series E Valuation

<span class="date">2021-06-23</span>
<span class="value">$10B</span>

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Implied Valuation

<span class="date">2025-07-07</span>
<span class="value">$14.50B<span>

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Change Since Last Round

<span class="date"> 2021-06-23 → 2025-07-07</span>

<span class="value green">45%</span>

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Quarterly Bid:Ask Volume Ratio

PM Insights highlights the quarterly bid and ask volume ratio where there were at least three institutional-sized broker contributions within that period.

During Q3 2024, Figma reached its highest combined bid and ask volume of $112M. In Q1 2024, 57% of Figma's volume shifted to the ask side, whereas in Q4 2024, 93% of Figma's volume was driven by the bids.

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Volatility of Composite Price

The volatility of the composite price is calculated based on price movements within a 90-day rolling window ending on each respective date.

Figma experienced high volatility from December 2024 till March 2025, reaching a peak of 27.01%. Following this peak, volatility declined by approximately 17% and continued to rise gradually over the subsequent months reaching 19.53% by July 7, 2025.

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