Figma’s IPO seeks a $13 billion valuation, with a bitcoin investment as a sweetener

Figma has set terms for its IPO, targeting a market capitalization of $12.92 billion at $26.50 per share, aiming to raise nearly $1 billion with a substantial portion allocated to selling shareholders. The design software firm, which saw 48% revenue growth to $749 million in FY2024 and recent Q1 2025 net income of $44.88 million, notably holds $69.5 million in Bitcoin on its balance sheet with further investment planned. This highly anticipated offering, coming after the termination of its $20 billion Adobe acquisition, reflects a robust valuation in a strengthening IPO market.

Analysis

Figma is capitalizing on a strengthening IPO market with an offering that targets a valuation of $12.92 billion, equivalent to approximately 17.2 times its full-year 2024 revenue. The company exhibits a robust growth profile, with revenue increasing 48% to $749 million in fiscal 2024 and continuing momentum into Q1 2025, which saw revenue of $228.2 million and net income of $44.88 million. This recent profitability is a key data point, as it follows a significant net loss of $732.1 million for the full fiscal year 2024. A critical detail of the offering is the allocation of proceeds, with the majority of the nearly $1 billion raised going to selling shareholders, including the co-founder and prominent venture capital firms, while the company itself will receive about $330.5 million. Unconventionally, Figma has integrated cryptocurrency into its balance sheet, disclosing a $69.5 million investment in a Bitcoin ETF and plans for further purchases, introducing a layer of digital asset volatility to its corporate treasury strategy. This IPO follows the termination of a $20 billion acquisition by Adobe, providing a high-value anchor for comparison.

Key Decisions for Investors

• Investors should weigh the company's compelling 48% annual revenue growth and recent quarterly profitability against its premium 17.2x sales valuation and the fact that a majority of IPO proceeds are designated for selling shareholders.
• Acknowledge the unconventional balance sheet risk, as the company's significant investment in Bitcoin introduces cryptocurrency market volatility, which is unrelated to its core SaaS operations.
• Monitor post-IPO earnings closely to confirm if the Q1 2025 return to profitability is sustainable, particularly following the substantial net loss reported for the full fiscal year 2024.
• Use the prior $20 billion Adobe acquisition offer as a valuation benchmark, recognizing that the current IPO price is substantially lower, which may signal either a value opportunity or a reflection of changed market conditions since the deal's termination.