Figma’s Over-Subscribed IPO Signals SaaS Valuation Rebound Driven by AI and Fundamentals

Figma has made a sensational return to the spotlight with its July 2025 IPO, shattering expectations and reigniting optimism in the software-as-a-service (SaaS) sector. Priced at $33 per share—above its projected $30–$32 range—the IPO valued the design platform at a commanding $19.34 billion and was 40 times oversubscribed. In the wake of years marked by tech valuation turmoil, Figma’s public debut has emerged as a defining moment for the industry.

Figma’s IPO Highlights a Strategic and Financial Milestone

The Figma IPO is not just a win for the company—it’s a signal flare for the broader tech landscape. The company, which integrates AI into collaborative design workflows, posted a remarkable $749 million in revenue in 2024, a 48% year-over-year growth. In Q1 2025 alone, revenue jumped 46%, with net income of $44.9 million and an impressive 88.9% gross margin. Figma’s profitability and cash reserves of $1.5 billion offer a rare mix of growth and financial resilience in a sector still healing from post-pandemic corrections.

SaaS Market Recalibration and AI-Powered Differentiation

Between 2022 and 2024, the SaaS industry saw valuations plummet under the weight of rising interest rates and investor skepticism. Revenue multiples in the Bessemer SaaS Index dropped from 18.4x in 2021 to 7.8x by early 2024. But 2025 tells a different story: companies with clear AI integration, sticky customer bases, and strong fundamentals are once again attracting premium valuations—often upwards of 37.5x revenue. Figma, with 13 million monthly active users and 95% of the Fortune 500 onboard, epitomizes this trend.

AI and Fundamentals: The New SaaS Investment Criteria

• Profitability or a clear path to breakeven
• Scalable AI-driven offerings
• Defensible market positions

These are now the golden rules investors are leaning into, shifting away from the old growth-at-all-costs playbook.

Lessons from Adobe’s Abandoned Acquisition

Adobe’s scrapped $20 billion acquisition attempt in 2023, halted by antitrust regulators, initially seemed like a major setback. Yet it became a strategic advantage. Figma not only pocketed a $1 billion termination fee, but repositioned itself as a stand-alone leader. This pivot—from acquisition target to IPO star—underscores its strong brand identity and independent vision.

Implications for SaaS Valuations Moving Forward

The SaaS landscape has changed. No longer is a massive user base or flashy metrics enough. Investors are zeroing in on business models that balance innovation with revenue discipline. Figma’s IPO confirms that premium valuations are still on the table—but only for companies that align with today’s market expectations. Notably, 95% of Cloud 100 firms from 2023 are expected to hit $100 million ARR by the end of this year, suggesting a broader recovery is underway.

What This Means for SaaS Startups and Investors

For startups, the Figma IPO is both blueprint and benchmark. Demonstrate AI value, build sticky products, and stay profitable—or at least show you can. For investors, this marks a shift from speculative bets to informed optimism. The next SaaS rocket ships will be those grounded in both creativity and cash flow.

Figma has not just launched an IPO; it’s launched a new chapter in SaaS investing—one that rewards thoughtful innovation over unbridled expansion. With macroeconomic uncertainties still in play, its success reinforces a simple truth: in tech, fundamentals are fashionable again.

You Must Know:

• Why was Figma’s IPO oversubscribed 40x?
  Figma’s strong financials, AI-enhanced tools, and massive user base created high investor demand, leading to 40 times oversubscription.
• How does Figma’s IPO affect other SaaS companies?
  It sets a benchmark for SaaS firms, emphasizing the need for AI integration, profitability, and strong market positioning.
• What’s the role of AI in Figma’s growth?
  Figma leverages AI to improve design workflows, positioning itself as a leader in scalable innovation within SaaS.
• Was Adobe’s failed acquisition bad for Figma?
  Initially perceived as negative, the $1B termination fee strengthened Figma’s balance sheet and gave it independence to pursue an IPO.
• What are investors looking for in SaaS now?
  They prioritize companies with scalable AI features, defensible positions, and a clear path to profitability or sustained profits.