Have you ever wondered what it feels like to strike gold in the heart of Silicon Valley? For a handful of venture capitalists, that dream became reality on July 31, 2025, when Figma, the design software darling, exploded onto the New York Stock Exchange. The air buzzed with excitement as shares skyrocketed, transforming paper wealth into staggering billions for some of the biggest names in tech investing. This wasn’t just another IPO—it was a seismic shift, a signal that the tech world is roaring back to life.
The Figma Phenomenon: A Game-Changer for VCs
Figma’s debut wasn’t just a win for its founders or employees—it was a lifeline for venture capital firms that had been navigating a parched IPO desert. For years, tech startups struggled to go public, leaving investors with portfolios full of promise but little cash to show for it. Figma’s blockbuster IPO, alongside other recent successes like Circle, has flipped the script, proving that big exits are back on the table.
The tech IPO market is finally thawing, and Figma’s debut is the spark we’ve been waiting for.
– Silicon Valley investor
So, what makes Figma’s story so compelling? It’s not just the numbers—though those are jaw-dropping. It’s the resilience, the near-miss with a failed acquisition, and the sheer audacity to keep building. Let’s dive into the details and unpack why this moment matters.
A Billion-Dollar Payday for Top Investors
Figma’s IPO didn’t just make headlines—it made billionaires. Four powerhouse venture firms—Index Ventures, Greylock, Kleiner Perkins, and Sequoia—now hold stakes collectively valued at a staggering $24 billion. Index Ventures, the largest shareholder, is sitting on a $7.2 billion fortune in Figma stock alone. Greylock and Kleiner Perkins aren’t far behind, with holdings worth $6.7 billion and $6 billion, respectively. Sequoia, a latecomer to the party, still walked away with a $3.8 billion slice of the pie.
These numbers are mind-boggling, but they’re more than just bragging rights. For venture firms, liquidity events like this are the lifeblood of their business. They provide the cash needed to return to limited partners—pension funds, endowments, and foundations—who bankroll their bets on the next big thing.
- Index Ventures: $7.2 billion in Figma stock, a bet placed as early as 2013.
- Greylock: $6.7 billion, fueled by a $14 million Series A in 2015.
- Kleiner Perkins: $6 billion, thanks to a $25 million Series B in 2018.
- Sequoia: $3.8 billion from a $40 million Series C in 2020.
These firms didn’t just get lucky—they saw something special in Figma early on. Perhaps the most fascinating part is how their patience paid off, even when the odds seemed stacked against them.
From Acquisition Flop to IPO Triumph
Figma’s road to the NYSE wasn’t a straight line. In 2022, Adobe swooped in with a $20 billion offer to buy the company, a deal that would’ve been a tidy win for investors. But the U.K.’s competition regulators had other plans, spiking the deal in 2023 over concerns it would stifle innovation. At the time, it felt like a gut punch. Yet, in hindsight, it was a blessing in disguise.
Figma’s CEO, Dylan Field, didn’t skip a beat. Instead of wallowing, he doubled down on building. The result? A company now valued at $68 billion—more than triple Adobe’s offer. Field himself is sitting on a personal stake worth over $6 billion, a testament to his vision and grit.
When the acquisition fell apart, we didn’t panic. We just kept building the best product we could.
– Figma leadership
This resilience is what sets Figma apart. It’s not just a story of financial success—it’s a reminder that setbacks can be springboards. For VCs, it’s a case study in why betting on strong founders matters.
Why This IPO Matters for Silicon Valley
Silicon Valley has been through a rough patch. From late 2021 through mid-2025, the IPO market was a ghost town. Soaring inflation and rising interest rates scared investors away from risky tech bets, leaving venture firms with portfolios full of “unicorns” that couldn’t cash out. According to finance experts, U.S. venture-backed IPOs plummeted from 155 in 2021 to just 13 in 2022, with only modest upticks in the years after.
| Year | Venture-Backed IPOs | Funds Raised |
| 2021 | 155 | $60.4 billion |
| 2022 | 13 | $2.1 billion |
| 2023 | 18 | $3.5 billion |
| 2024 | 30 | $7.7 billion |
Figma’s IPO, coupled with Circle’s $41 billion debut in June, signals a turning point. The Nasdaq is flirting with record highs, and investors are hungry for fresh tech offerings. Could this be the start of a new golden age for tech IPOs? I’m inclined to think so, though only time will tell.
For venture firms, the stakes are high. They’ve faced mounting pressure to deliver returns to their limited partners, especially after the Federal Reserve’s aggressive rate hikes in 2022. Figma’s success offers a glimmer of hope that the exit drought is finally easing.
The Double-Edged Sword of IPO Pops
Not everyone’s popping champagne over Figma’s 250% first-day surge. Some industry voices argue that massive IPO pops—like Figma’s leap from $33 to over $90—leave money on the table. Why? Because the company could’ve priced its shares higher, raising more capital for itself rather than handing windfalls to new investors.
Big IPO pops benefit Wall Street’s big clients, not the company. It’s a rigged game.
– Veteran VC
This critique isn’t new. For years, investors like Bill Gurley have called out the IPO pricing game, arguing that underwriters intentionally lowball prices to favor their institutional clients. In Figma’s case, the $1.2 billion raised was a drop in the bucket compared to the $68 billion market cap. Still, for VCs holding locked-up shares, the paper gains are a welcome sight, even if they can’t cash out until January 2026.
Personally, I find this debate fascinating. On one hand, companies like Figma deserve to maximize their haul. On the other, the buzz of a big pop can supercharge a stock’s momentum. It’s a trade-off, and not an easy one to navigate.
What’s Next for Tech IPOs?
Figma’s triumph isn’t an isolated event. Circle’s doubling on its debut day and CoreWeave’s near-tripling since March point to a broader trend: investors are ready to bet big on tech again. CoreWeave, an AI infrastructure provider, now boasts a $56 billion market cap, while Circle’s stablecoin business is valued at $41 billion.
- Figma: $68 billion market cap, 250% first-day pop.
- Circle: $41 billion, doubled on debut.
- CoreWeave: $56 billion, nearly tripled since IPO.
These successes have sparked optimism that more startups will follow suit. NYSE president Lynn Martin recently predicted that Figma’s debut could “open the floodgates” for tech IPOs. But there are hurdles ahead. Earlier this year, fears of sweeping tariffs under a new U.S. administration spooked markets, delaying IPOs for companies like Klarna and StubHub. Thankfully, those fears have eased, and the Nasdaq’s resilience suggests smoother sailing.
What’s the takeaway? The tech IPO market is heating up, but it’s not a free-for-all. Companies need strong fundamentals, visionary leadership, and a compelling story—just like Figma’s.
Lessons from Figma’s Rise
Figma’s journey offers a masterclass in startup success. From its scrappy beginnings in 2012 to its $68 billion valuation, the company has shown what’s possible when you combine innovation, resilience, and community. Early investors saw the potential in Figma’s collaborative design platform, which reshaped how teams create digital products.
Greylock’s John Lilly summed it up best: Figma’s focus on product, community, and craft changed the game. Kleiner Perkins’ Mamoon Hamid noted the “unmistakable love” from Figma’s early users, while Sequoia’s Andrew Reed praised the company’s talent and culture. These aren’t just platitudes—they’re insights into what makes a startup unstoppable.
Figma’s success lies in its relentless pursuit of excellence and community-driven growth.
– Early Figma investor
For aspiring entrepreneurs, Figma’s story is a reminder to stay focused, even when the world throws curveballs. For investors, it’s proof that backing the right team can yield outsized returns. And for the rest of us? It’s a front-row seat to the tech world’s next chapter.
The Bigger Picture
Figma’s IPO is more than a financial milestone—it’s a cultural moment. It signals a shift in Silicon Valley’s mood, from cautious to celebratory. After years of drought, the venture capital ecosystem is buzzing again, fueled by blockbuster exits and renewed investor confidence. But let’s not get carried away. The road ahead will have its bumps, and not every startup will be a Figma.
Still, there’s something undeniably exciting about this moment. It feels like the start of something big, a renaissance for tech innovation. As I reflect on Figma’s rise, I can’t help but wonder: which startup will be next to light up the NYSE? And what lessons will they teach us?
For now, the champagne is flowing, and Silicon Valley is smiling. Here’s to the dreamers, the builders, and the investors who bet on them. The future looks bright.
