Figma IPO: Dylan Field to Earn $60M, Investors Sell Shares

Figma's IPO and Shareholder Dynamics

On Monday, Figma publicized its anticipated IPO price, setting a range of $25 to $28 per share. Simultaneously, the company unveiled an atypical strategy regarding its initial public offering.

Unusual Share Offering Structure

Figma is permitting current shareholders to offer a significantly larger volume of shares than the company itself intends to sell. The company is planning to issue approximately 12.5 million shares.

However, existing shareholders will have the opportunity to liquidate nearly 24.7 million shares, according to the company’s filings.

Potential for Increased Share Sales

Furthermore, if the IPO demonstrates the strong market interest predicted, shareholders will gain the option to sell an additional collective total of up to 5.5 million shares.

Founder's Planned Share Sale

Dylan Field, Figma’s founder and CEO, has revealed his intention to sell 2.35 million shares. Based on the midpoint of the price range, this sale would yield over $62 million.

This figure could be substantially higher should the IPO price surpass $28.

Continued Control Despite Share Sale

Despite this substantial sale, Field will retain a significant stake in the company and maintain control. He will hold 74% of the voting rights following the IPO.

This control is facilitated by supervoting rights, granting 15 votes per share for the Class B stock he possesses, along with the ability to vote the Class B shares held by his co-founder, Evan Wallace, as detailed in the S-1 filing.

Venture Capitalist Participation

Figma’s primary venture capital investors are also participating in the share sale, including Index, Greylock, Kleiner Perkins, and Sequoia.

Should demand for the over-allotment option be strong, each of these investors could liquidate between 1.7 million and 3.3 million shares.

This will allow them to provide returns to their own investors within the currently constrained venture capital market.

Investor Retention and Demand Signals

It’s important to note that each of these investors is maintaining a considerable portion of their Figma holdings.

One interpretation of this predominantly secondary sale is that opening share sales to existing investors was necessary to meet anticipated demand.

Financial Implications for Figma

The company itself will not directly profit from the shares sold by its stockholders.

However, should the IPO price exceed the announced range – a common occurrence with highly sought-after IPOs – Figma and its shareholders will both benefit from increased capital.

Potential IPO Size and Timeline

Prior to pricing, analysts projected Figma to raise approximately $1.5 billion through the IPO.

If the final price surpasses expectations, Figma’s IPO would represent the largest offering of 2025 to date.

The IPO is anticipated to occur next week, and further details will become available shortly. Figma has declined to provide additional commentary at this time.