Index Ventures turned an $86.5 million investment in Figma into a stake worth nearly $7 billion following the company’s explosive IPO.
Why it matters: Index’s success with Figma highlights the increasing prominence of European venture firms in a field traditionally dominated by American giants, outperforming even Silicon Valley’s premier firm, Sequoia Capital.
The details:
- Index Ventures invested a total of $86.5 million in Figma over 12 years, starting with a $1.8 million seed round in 2013.
- Index sold roughly 5% of its shares in the IPO, collecting about $66 million while retaining over 15% ownership of the company.
- By market close on IPO day, Index’s remaining stake in Figma swelled to north of $7 billion, representing a 1300% return on invested capital and an almost 90x return.
Index partner Danny Rimer first met Figma co-founder Dylan Field when Field was an 18-year-old intern at Flipboard. Rimer was impressed by Field’s analytical approach and visually compelling presentation style.
The vision: Field and Figma co-founder Evan Wallace aimed to democratize design by creating tools accessible to all, even if it meant taking over two years to develop a product.
The philosophy: Index’s investment philosophy diverges from the conventional total addressable market (TAM) metric. Instead, they look for disruptive ideas that redefine markets.
The future: With the rise of AI lowering barriers to app development, Figma’s value proposition as a foundational design tool is more relevant than ever.