Figma Sets $12.5B Valuation in New Equity Offering, Falling Short of Adobe's Acquisition Offer

Figma announced on Thursday that it will conduct a tender offer allowing investors, including current and former employees, to sell shares at a valuation of $12.5 billion. 

This marks a 25% increase from its 2021 fundraising valuation, yet falls short of Adobe Inc’s ADBE $20 billion acquisition offer in 2022. 

Following regulatory hurdles, Adobe and Figma terminated their acquisition deal last December.

The San Francisco-based startup anticipates the tender size will range between $600 million and $900 million, backed by over 25 existing and new investors, including A16z, Sequoia, and Kleiner Perkins, CNBC reports.

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Figma’s design tools are widely adopted within significant corporations such as Microsoft Corp MSFT, which invests millions annually in the software. Other users include Alphabet Inc GOOG GOOGL Google, Oracle Corp ORCL, and Salesforce Inc CRM.

In the prime of mega financings in June 2021, Figma reached a valuation of $10 billion during a funding round with contributions from entities like Morgan Stanley’s Counterpoint Global. This valuation came before a significant market downturn in 2022.

Meanwhile, Adobe is developing an AI model capable of generating video content and is competing with OpenAI and Google.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Dmitry Demidko on Unsplash.