An IPO is more than a company’s first day on a stock exchange. It is a financing decision, a public test of valuation, and a new set of reporting obligations. Figma’s future became a point of interest for investors after Adobe’s proposed acquisition fell apart, leaving the design-software company independent and keeping a possible public offering in the conversation.
The episode also offers a useful lesson for anyone following technology stocks: when a large acquisition fails, the target company must decide how to fund growth, reward employees, and demonstrate value without the buyer’s resources. Those choices can shape whether an IPO makes sense—and when.
Why the Adobe deal mattered
Adobe announced plans to acquire Figma in 2022 in a transaction valued at approximately $20 billion. The deal would have brought Figma’s collaborative design tools into Adobe’s creative-software portfolio. But regulators in the United Kingdom and European Union raised competition concerns, and the companies ended the agreement in December 2023.
For Figma, the failed acquisition did not automatically make an IPO the next step. It meant the company remained independent, with the chance to pursue its own strategy and the challenge of meeting that strategy’s financial demands. The company had also agreed to pay Adobe a termination fee, an example of how a deal’s collapse can have direct costs beyond the time and effort spent negotiating it.
For a closer look at the deal and its aftermath, read this analysis of Figma and Adobe. The broader takeaway is that regulatory risk can alter even a high-profile transaction, and investors should not treat an announced acquisition as a guaranteed exit.
Why an IPO could appeal to an independent company
A public offering can raise capital for product development, international expansion, acquisitions, or other priorities. It can also give early investors and employees a path to sell some shares over time, subject to lockups and other restrictions. Publicly traded shares may help a company compete for talent, too, because equity compensation has a visible market value.
Those benefits come with trade-offs. Public companies face recurring reporting requirements, audits, investor scrutiny, and the cost of maintaining compliance systems. Executives must explain performance on a regular schedule, while share-price movements can put pressure on decisions that require a longer horizon. An IPO is therefore not simply a fundraising event; it changes the company’s operating environment.
For a software business like Figma, investors would likely examine revenue growth, customer retention, margins, competition, and the efficiency of sales and marketing spending. They would also want to understand how the company plans to keep its product distinctive as design and collaboration software evolves. A strong brand or popular product alone does not settle questions about valuation or sustainable profitability.
What investors should watch
There is no guaranteed timetable for a Figma IPO. Before interpreting any signs of a listing, investors can focus on the fundamentals that tend to matter for software companies:
- Growth quality: Is revenue expanding through durable customer demand, or does growth rely heavily on discounts and costly acquisition?
- Retention: Do customers continue using and paying for the product, and can the company expand its relationships with existing accounts?
- Financial discipline: Is the business improving its margins while still investing in product and infrastructure?
- Competitive position: Can it defend its place against established software firms and newer tools?
- Market conditions: Are investors receptive to new technology listings, and are comparable companies trading at valuations that support an offering?
These questions apply beyond Figma. Private companies weighing an IPO must balance the value of raising public capital against the expense and scrutiny that come with it. They may also consider private funding, strategic partnerships, or simply remaining independent for longer.
Costs matter before a company goes public
Financial readiness starts well before a roadshow. A growing company needs dependable accounting, clear budgeting, reliable security, and systems that can support a larger customer base. Even businesses outside software face similar planning questions: an online retailer, for example, must account for development, integrations, payment systems, and ongoing maintenance when it expands its digital operation. A practical breakdown of e-commerce development costs can help founders understand how technical choices affect budgets. Osdire is one place businesses can use to find freelancers for programming, design, and other project work, with pricing set for each order.
For a company considering public markets, these are not minor administrative details. Investors expect financial information they can trust, and weak internal processes can create delays, surprise expenses, or questions about management’s readiness. Building those capabilities early can make a company stronger whether it ultimately lists or stays private.
The larger lesson from Figma’s next chapter
The failed Adobe acquisition put Figma’s independence back in focus, but independence does not dictate a single outcome. The company can continue investing privately, explore other strategic options, or eventually pursue an IPO if the business and market conditions support it. For investors, the most useful approach is to separate the news of a potential transaction from the underlying economics of the company.
In the end, an IPO is a milestone, not a verdict on a business. Figma’s story highlights how regulation, financing, operating costs, and product strength can all influence a company’s path. Watching those factors offers a more grounded perspective than trying to predict a listing date from the acquisition’s collapse alone.