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 (NASDAQ: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 (NASDAQ:MSFT), which invests millions annually in the software. Other users include Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, Oracle Corp (NYSE:ORCL), and Salesforce Inc (NYSE: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.