Introduction: A Revival in the Tech IPO Market
When Figma went public at the end of July, it signaled a revival in the technology IPO market after nearly three years of dormancy. The design platform’s blockbuster debut not only energized investors but also reignited conversations about what it takes for startups to defy skepticism and redefine industries.
Early Doubts and Why Figma Almost Didn’t Happen
At its inception, many doubted Figma’s potential. Terrence Rohan, one of Figma’s earliest investors and its first board director, admitted that skeptics could have easily written a case study predicting its failure.
The concerns were valid:
The market appeared too small for a large-scale design collaboration platform.
The competition was fierce, with established players already dominating the landscape.
The margins seemed unsustainable, raising doubts about scalability.
Despite these hurdles, Rohan chose to look deeper—beyond the market conditions and competitive pressures.
Spotting Potential in Founders: Dylan Field and Evan Wallace
What convinced Rohan wasn’t just the product concept, but the people behind it. Dylan Field and Evan Wallace, Figma’s co-founders, demonstrated a rare combination of technical skill, creativity, and authenticity.
“They had a vision for the future,” Rohan recalls of their 2013 pitch while he was at Index Ventures. The firm went on to lead Figma’s $3.87 million seed round and continued supporting the company through later funding stages.
This highlights a key investment lesson: often, the quality and conviction of the founders outweigh early doubts about market conditions.
The Road to Growth: From Seed Funding to IPO
Launched in 2015, Figma’s initial tool challenged traditional workflows by enabling real-time, collaborative design online—something considered radical at the time.
By 2022, the platform had amassed more than 4 million users. This rapid adoption caught the eye of Adobe, which attempted a $20 billion acquisition. However, after regulatory scrutiny, the deal collapsed.
Far from being a setback, this only increased the spotlight on Figma as an independent powerhouse in the design ecosystem.
Figma’s Disruption of Design Collaboration
Figma redefined the way teams approach design by breaking down silos and encouraging collaboration across roles. Its tools empowered not just designers but also developers, marketers, and product managers.
This democratization of design made it more than a niche tool—it became a hub for cross-functional creativity.
The Adobe Deal That Didn’t Happen
Adobe’s attempt to acquire Figma underscored its disruptive potential. While the $20 billion deal would have been one of the largest in design software history, regulators blocked it over competition concerns.
The outcome was a win for innovation: Figma retained its independence, reinforcing its position as a challenger brand unafraid to take on incumbents.
Figma’s IPO Success Story
When the IPO finally arrived, investor demand exceeded expectations. The offering was oversubscribed more than 40 times, and shares tripled in value on the first day.
For many, this validated what early believers had seen years ago: a company built on vision, execution, and authenticity could outperform even in uncertain markets.
Key Lessons for Entrepreneurs and Investors
The Power of Founder Authenticity
Authenticity was central to Figma’s success. Founders who deeply understand themselves and their vision inspire trust, attract talent, and withstand external skepticism.
Vision Over Market Doubts
Great companies often emerge in spaces dismissed as too small or too competitive. By focusing on solving real problems in innovative ways, startups can redefine markets entirely.
Confidence in Early-Stage Investing
For investors like Rohan, Figma validated the importance of backing bold ideas and authentic founders. This philosophy continues to shape his work at the Otherwise Fund, with investments in Hugging Face, Notion, Robinhood, and Vanta.
What This Means for the Future of Collaborative Tools
Figma’s journey reflects a broader trend: the rise of collaborative, cloud-native tools across industries. Businesses are shifting away from siloed models toward real-time, cross-functional workflows.
This isn’t just about design—it’s about the future of how work gets done.
How Trenzest Helps Businesses Navigate Similar Growth Paths
At Trenzest, we understand the dynamics that propel companies like Figma to success. From market positioning strategies to growth-focused marketing campaigns, we help startups and enterprises alike seize opportunities in rapidly evolving markets.
Much like Figma, your vision may face skepticism today—but with the right strategy, it can become tomorrow’s success story.
Conclusion: The Next Chapter of Innovation
Figma’s IPO wasn’t just a financial milestone—it was a case study in resilience, authenticity, and visionary leadership. For entrepreneurs, it reinforces the importance of staying true to your mission. For investors, it highlights the value of backing founders with conviction.
At Trenzest, we believe the next wave of industry disruptors is already emerging. If you’re building the future, we’d love to partner with you on that journey.
