Figma, the design platform powerhouse, has captured the spotlight with its remarkable post-IPO performance, but its journey tells a more complex story about startup exits in 2025.
Why it matters: Figma’s IPO success signals complex market dynamics, with hype and fundamentals both playing significant roles.
The details:
- Figma’s IPO was 40x oversubscribed, and its shares briefly surged to $125 before settling around $90.
- Despite impressive financials, Sapphire Ventures’ Jai Das cautioned that fundamentals weren’t the only force at play, with hype also driving the price.
- Most of 2025’s big exits look different, particularly in AI, where M&A has focused more on talent acquisitions than product acquisitions.
- Google reportedly paid $2.7 billion for an AI firm, and Microsoft, Amazon, and others have made similar moves, prioritizing talent over technology.
Das and TechCrunch’s Rebecca Bellan also discussed broader trends, including why AI exits today focus more on talent than tech and whether that’s sustainable. Das highlighted early promise in sectors beyond AI, such as defense tech, space tech, and crypto infrastructure.
What they’re saying:
- “This is a little bit of a meme stock. The price of shares is driven a little bit by cash flow and earnings, but a lot of it is also driven by human behavior, what people know, what people talk about.” – Jai Das, Sapphire Ventures
The bottom line: While Figma’s IPO success stands out, it reflects a complex interplay of hype and fundamentals in the current market, with most 2025 exits following different patterns, particularly in the AI sector.