Dylan Field, co-founder of Figma Inc. FIG, witnessed his company’s remarkable debut on the New York Stock Exchange on Thursday, marking the largest U.S. venture-capital-backed tech IPO in four years.
Check out the current price of FIG stock here.
What Happened: Figma’s IPO closed at $115.50, instantly elevating its valuation to nearly $68 billion. This figure is over three times the $20 billion acquisition offer from Adobe Inc. ADBE that fell through two years ago.
However, long before the Adobe bid, Field started with an idea along with co-founder Evan Wallace, who was a teaching assistant at Brown University. What started out as a college project would go on to become a multi-billion-dollar company a decade later.
Armed with an idea to explore the possibilities of new browser technologies, Field bagged the prestigious Thiel Fellowship in 2012 to create what is now Figma, along with Wallace, according to the company.
Field, 33, embraced technology early on in his life – he learned how to use a computer at age three, and later on, went to a Rhode Island Ivy League school. He also worked as a research assistant for nine months at Microsoft Corp. MSFT, a four-month internship at LinkedIn, and two internships at Flipboard.
Figma’s stock soared by 250% on its first day, achieving the largest first-day surge for a billion-dollar tech IPO. This event solidified Figma’s role as a key player in the tech IPO market. The intense demand led to limited share availability for many investors, and trading was temporarily halted due to volatility.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Why It Matters: The explosive debut of Figma on the stock market has sparked significant interest and discussion among investors and analysts. Jim Cramer had previously warned that Figma’s valuation was “too expensive” at 50 times sales, yet the stock defied these concerns, surging 250% on its first day. This highlights the intense demand and investor confidence in Figma’s potential.
Additionally, Nikita Bier, Head of Product at Elon Musk’s social media platform X, predicted that Figma could become a “meme stock beyond all comprehension.” This prediction underscores the growing influence of social sentiment analytics in trading strategies.
Despite valuation concerns, Figma’s shares continued to attract attention, briefly reaching $143.45 in after-hours trading before pulling back. This ongoing interest in Figma reflects the company’s strong market position and the potential for future growth.
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: M.oo / Shutterstock.com
Great Job Rounak Jain & the Team @ Benzinga – Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals Source link for sharing this story.
