Adobe announced this morning that it has agreed to acquire collaborative design platform Figma for $20 billion in cash and stock, in what looks to be the largest purchase of a U.S. private, venture-backed company this year.
Founded in 2012, San Francisco-headquartered Figma has raised $333 million in venture funding to date, per Crunchbase data, and includes a long list of well-known firms among its backers.
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The proposed purchase price represents a twofold gain over the $10 billion valuation Figma reportedly secured in its last funding round, in June 2021. Just 14 months earlier, the firm was valued at $2 billion.
Out of all investors, Index Ventures will likely see the biggest gain on an initial investment, as the firm co-led Figma’s $3.9 million seed round in 2013. Index also participated in follow-on rounds, indicating it likely held all or much of its stake as the company scaled.
Sequoia Capital won’t be left out either, as the firm led Figma’s 2019 Series C. Nor will Andreessen Horowitz, which led a Series D in 2020. Lastly, Durable Capital Partners led a $200 million Series in 2021.
The above-mentioned firms are just the lead investors in Figma. Including both lead and non-lead investors, the company had at least 30 known backers, per Crunchbase data. For all of them, presuming the proposed deal goes through, it looks like a happy day.
However, while Figma backers may be pleased with the deal, the same can’t be said for Adobe shareholders. Adobe’s stock was down over 12% in morning trading following that acquisition’s announcement. Stockholders, it appears, may be wondering if the price was a bit too rich, even for a deep-pocketed acquirer like Adobe.
Illustration: Dom Guzman
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