Recently, the globally renowned design collaboration platform Figma submitted its prospectus to the New York Stock Exchange, officially starting the process of going public. It is expected to become the largest tech IPO of 2025. Since its establishment in 2015, Figma has completely changed the way the design industry collaborates by bringing professional design tools to the browser, earning it the reputation of "Google Docs for design." The platform now has 450,000 paying users and covers 95% of the Fortune 500 companies.
In the prospectus, the word "AI" was mentioned over 200 times, showing Figma's emphasis on and concerns about artificial intelligence. In 2024, Figma plans to launch four new AI products, with the most anticipated being Figma Make: users can simply input a natural language statement, and it will automatically generate an editable product prototype. This technology aims to improve design efficiency and reshape the design process.
Image source note: The image was generated by AI, and the image licensing service provider is Midjourney
However, in the prospectus, Figma also admitted that the rapid development of AI has brought significant challenges to the company, which may affect its market competitiveness. This view reflects the common dilemma faced by many SaaS companies today: AI is both an opportunity and a pressure. Whether Figma can leverage this technological transformation to achieve business growth will be key to its successful listing.
Figma's business model is diverse and flexible, covering various needs from individual users to large enterprises. Its subscription plans are divided into four tiers, ensuring that customers of different sizes and industries can find suitable solutions. In 2024, Figma's annual revenue reached $749 million, a 48% increase from the previous year. Although Figma made a profit in 2023 due to receiving $1 billion in compensation, its loss in 2024 shows the challenges the company faces in fierce market competition.
Notably, Figma's market share in the design industry has significantly increased, rising from 7% in 2017 to 90% today. This industry transformation not only makes collaboration between designers and developers smoother but also provides product managers with the possibility of real-time feedback.
However, with its success comes pressure from emerging AI design tools. These tools can generate designs with simple instructions, greatly simplifying the workflow. Figma's challenge lies in how to maintain its market leadership in such a competitive environment.