UI UX design collaboration software company Figma officially listed on the New York Stock Exchange (stock code FIG) on Thursday (7/31), with its stock price rapidly soaring 250%, leading to a hundredfold return for venture capital investors, expected to bring in billions of dollars. Figma's market capitalization on its first day reached $56.3 billion, easily exceeding the $20 billion in the sale agreement Figma reached with Adobe in 2023.
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Figma's stock surged 250% on its first day, with a market value of $56.3 billion easily surpassing Adobe's acquisition price.
The San Francisco-based company closed at $115.50 per share in New York on Thursday, up 250% from the $33 IPO price. Data compiled by Bloomberg shows that Figma's stock price set a record for the largest first-day increase for a company listed in the U.S. with funding exceeding $1 billion in at least thirty years.
According to the outstanding shares listed in the documents, Figma's market capitalization on its first day of listing reached $56.3 billion. When including employee stock options and restricted stock units, as well as CEO Dylan Field's restricted stock units, Figma's fully diluted value is estimated to be over $65 billion.
This valuation easily surpasses the $20 billion sale agreement Figma reached with Adobe in 2023.
CNBC host Jim Cramer commented on Figma before its IPO. While he expressed optimism about Figma's core business, he was reluctant to recommend the stock immediately, as its price could quickly become too high. He correctly anticipated Figma's surge but also missed out on a significant gain. Figma's stock continued to rise in after-hours trading, climbing nearly 25% to $143, more than four times the IPO price, according to CNBC data.
Early venture capital supporters made a huge profit, yielding returns of up to a hundred times, bringing in billions of dollars.
According to reports from Bloomberg, Figma's largest venture capital supporter, Index Ventures, invested nearly $100 million in Figma when it was still a startup in its seed round. As of Wednesday, based on Figma's IPO price, the shares held by Index Ventures were valued at $2.17 billion. Based on yesterday's closing price of $115.5, the value has increased to $7.23 billion.
Figma's second-largest supporter, Greylock Partners, led Figma's Series A funding in 2015 when Figma was valued at $0.20 per share. According to a knowledgeable source, Greylock Partners has invested about $50 million in Figma. The source stated that at the time of Figma's IPO, the shares held by Greylock Partners were valued at $2.03 billion, more than 40 times its investment amount. The shares held by Greylock Partners (excluding those sold) rose to about $6.75 billion on Thursday, translating to a hundredfold return.
In addition to these companies that made billions of dollars in profits, there are other well-known investors, including Kleiner Perkins and Sequoia Capital, who backed the company when it was still a startup. These windfalls are particularly important for the venture capital industry, which has experienced a long period of stagnation in the IPO market until recently.
Other major shareholders include Andreessen Horowitz, which led the Series D funding round, and Durable Capital Partners, which led the Series E round.
Further Reading
Design giant Figma enters the scene! Reveals it has $70 million in Bitcoin and plans to buy another $30 million.
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Original title: (The IPO wave rises again, Figma's stock surges 250% on the first day of listing, early venture capital profits exceed a hundred times)
Original author: Florence
The article 'Design giant Figma IPOs! First-day surge of 250%, early venture capital profits exceed a hundred times' was first published in 'Crypto City'.