Figma's IPO success is ‘a little bit of a meme stock,' says Sapphire Ventures' Jai Das

Figma successfully navigated a post-failed Adobe acquisition IPO, with its offering 40x oversubscribed and shares settling near $90 after an initial surge to $125. While financially strong, industry expert Jai Das notes its performance was partly influenced by market hype, contrasting with the broader 2025 startup exit landscape. The current trend, particularly in AI, favors 'acqui-hires' prioritizing talent over technology, exemplified by Google's reported $2.7 billion acquisition for Character.AI's team, signaling a significant shift in M&A and exit strategies for startups.

Analysis

Figma's recent IPO presents a nuanced view of the current startup exit environment. Despite a failed acquisition by Adobe, the company achieved a notably successful public offering, which was 40x oversubscribed and saw its share price briefly surge to $125 before stabilizing near $90. However, expert commentary suggests this performance was not driven solely by fundamentals like cash flow and earnings, but was significantly amplified by hype and "human behavior," labeling it a "meme stock." This contrasts sharply with the broader M&A landscape in 2025, particularly within the AI sector. The dominant trend has shifted towards "acqui-hires," where large technology firms prioritize talent acquisition over product integration. This is exemplified by Google's reported $2.7 billion payment for the Character.AI team, a strategy also being pursued by Microsoft and Amazon, signaling that specialized human capital is currently viewed as a primary strategic asset in high-growth tech.

Key Decisions for Investors

• Investors should treat high-profile tech IPOs with caution, as demonstrated by Figma's volatile debut, by distinguishing between fundamental valuation and speculative hype which can cause significant initial price swings.
• The 'acqui-hire' trend in AI, highlighted by Google's deal for Character.AI's team, indicates that the primary M&A driver for tech giants is acquiring talent, a factor that should be weighed heavily when assessing their long-term competitive advantages.
• For investors with exposure to private markets, the current M&A landscape suggests that startups with exceptional talent may represent more valuable acquisition targets than those with just a strong product, altering the calculus for late-stage venture investments.