The collaborative design company is likely worth less than its 2021 Series E valuation of $10B. We break down Figma's comps, revenue, and valuation.
Adobe tried to acquire collaborative design tool Figma for $20B.
The deal was killed today following regulatory hurdles.
What’s Figma actually worth today? Based on current comps, Figma’s valuation is between $8.3B and $9.0B.
We break it down below.
REVENUE & VALUATION HISTORY
Figma was valued at $10B in June 2021 when it raised its Series E.
In September 2022, Adobe announced its intention to acquire Figma for $20B.
Per CB Insights, Figma’s ARR in 2022 was $400M-$450M and reportedly growing 100% YoY.
This meant Adobe was paying a price/revenue multiple of 44.4-50x.
Figma is on track for $600M in ARR in 2023, per recent reports — or roughly 50% growth over last year.
COMPS
We’ll use design behemoth and former acquirer Adobe as well as Canva as comps.
Canva was valued at $25.4B in a secondary market transaction led by Coatue Management and Iconiq Capital in August 2023.
As you can see in the screenshot above, Canva is expected to do $1.7B in ARR this year giving it a 14.94x price/revenue multiple based on its most recent financing.
Adobe trades at a price/sales multiple of 13.88x.
Source: YCharts
Valuation RANGES
Assuming Figma does $600M of ARR this year (2023), applying the multiple range of 13.88-14.94x would give a valuation of:
- $8.3B — using Adobe’s multiple
- $9.0B — using Canva’s multiple
Both marks would be a step down from Figma’s 2021 Series E valuation of $10B, following the valuation multiples compression we’ve seen in private tech since 2021.
It’s unclear if Figma will need to raise again soon but it’s likely that its valuation will be below the June 2021 mark — and significantly beneath the $20B Adobe agreed to pay.
It’s also clear that the big tech M&A slump which we’ve been observing is likely to be chilled further with this transaction being scuttled.
If you aren’t already a client, sign up for a free trial to learn more about our platform.