Figma

The deal values Figma cofounders Dylan Field and Evan Wallace's stakes in the buzzy design startup at $2 billion apiece.

Field took a Thiel Fellowship and dropped out of college in 2012 to begin building what would become Figma. Adobe’s last major acquisition was a [$1.2 billion takeover](https://blog.frame.io/2021/08/19/adobe-announces-intent-to-acquire-frameio/) of collaborative video editing and review software maker Frame.io in August 2021. “And design is a team sport—it’s collaborative by nature.” Forbes reported that the startup generated $75 million in revenue in 2020. Forbes estimates that Field and Wallace each hold a 10% stake in the company that would now be valued at $2 billion. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”

San Francisco-based Figma, founded by Dylan Field and Evan Wallace in 2012, allows software developers and designers to collaborate remotely and design ...

[Purchase a Print subscription for 11,12 € per week You will be billed 107,91 € per month after the trial ends](https://subs.ft.com/spa3_uk3m?segmentId=461cfe95-f454-6e0b-9f7b-0800950bef25&utm_us=JJIBAX&utm_eu=WWIBEAX&utm_ca=JJIBAZ&utm_as=FIBAZ&ft-content-uuid=01c8cd15-f5b8-457a-8301-fb89413ee407) [Purchase a Digital subscription for 6,64 € per week You will be billed 39 € per month after the trial ends](https://subs.ft.com/spa3_digital?ft-content-uuid=01c8cd15-f5b8-457a-8301-fb89413ee407) [Purchase a Trial subscription for 1 € for 4 weeks You will be billed 65 € per month after the trial ends](/signup?offerId=41218b9e-c8ae-c934-43ad-71b13fcb4465&ft-content-uuid=01c8cd15-f5b8-457a-8301-fb89413ee407)

The deal is part of Adobe's push to expand its tools for virtual collaboration, design and remote production.

“Figma has built a phenomenal product design platform on the web,” said David Wadhwani, president of Adobe’s Digital Media business. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.” Founded by Dylan Field and Evan Wallace in 2012, Figma pioneered product design on the web.

Rimer, a partner at the venture capital firm Index Ventures, invited Figma's co-founder and chief executive officer, Dylan Field, to dinner and ordered a bottle ...

Field, 30, is now of legal drinking age in the US, and both he and Rimer stand to make a lot of money from the sale. Rimer went ahead, he recalled, and ordered the Pinot anyway. [Index Ventures](/quote/1805Z:SW), invited Figma’s co-founder and chief executive officer, Dylan Field, to dinner and ordered a bottle of wine to celebrate the deal.

Adobe has announced it has purchased Figma, a popular design platform and Adobe XD competitor, for $20 billion in cash and stock.

“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.” Experts believe that Adobe paid 50 times too much for the company when the purchase price is compared to Figma’s annual revenue. Adobe expects the cash consideration to be financed through cash on hand and, if necessary, a term loan. The company says the merger will “usher in a new era of collaborative creativity.” Until the transaction closes, each company will continue to operate independently. Since it was founded in 2012, Figma has amassed a following of millions of designers, developers, and students.

Hello, friends, and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.

Click here to find out more about our partners. Find out more about how we use your information in our Privacy Policy and Cookie Policy. You can select 'Manage settings' for more information and to manage your choices.

$20 billion Figma deal is a historic coup for startup investors in an otherwise miserable year · Just over a year after raising money at a $10 billion valuation, ...

This really was more a question of what is the best way to achieve the goal of company, which is to democratize tools for design and creation across the globe." "Figma is actually one of these rare companies that has achieved incredible escape velocity," said Narayen, Adobe's CEO since 2007. Before that, the biggest was Macromedia for $3.4 billion in 2005. [BVP Nasdaq Emerging Cloud Index](https://cloudindex.bvp.com/), forward multiples have fallen to just over 9 times revenue from about 25 in February 2021. "This was a significant threat to Adobe," Lo Toney, founding managing partner of Plexo Capital, which invests in start-ups and venture funds, told CNBC's "TechCheck" on Thursday. They include Durable Capital Partners and "The company was IPO-able. venture-backed software M&A was tracking to its worst year since 2017." Tomasz Tunguz of Redpoint Ventures wrote in a Investors in the 2021 round doubled their money. Figma's cloud-based designed software has been a growing headache for Adobe over the last few years. There was no other bidder out there driving up the price, according to a person familiar with the matter who asked not to be named because the details are confidential.

Adobe Inc will buy startup Figma for about $20 billion in its biggest deal, the Photoshop maker said on Thursday, bulking up on applications that support ...

Either company will have to pay a termination fee of $1 billion if they scrap the deal. Distribution across machines running on Windows helped Adobe gain ubiquity and the companies also sync their products across platforms. It's not a sustainable solution." The company had cash and cash equivalents of $3.87 billion as of Sept. Some analysts pointed to the size of the deal that could require Adobe to raise debt. Adobe has sharpened its focus on the collaboration tools space in recent years through acquisitions.

Barely weeks after Heroku terminated free hosting plans, Figma's acquisition by Adobe Inc. becomes the next 'bad news' in tech.

This makes Figma one of the biggest rivals to Adobe, creating a necessity to eliminate Figma through acquisition. The report indicates that Figma is being used by tens of thousands of employees inside Microsoft in their daily work. The cloud-based design platform enables multiple users to modify a design in real time.

Adobe's $20 billion Figma deal raises eyebrows and rings antitrust bells ... Turning foes into friends. ... A burgeoning design startup will now be owned by the ...

[debuted in 2016](https://www.forbes.com/sites/alexkonrad/2021/08/10/how-figma-became-designs-hottest-startup-valued-at-10billion/?sh=6f50f1a3726e), it’s been touted as an Adobe killer for being [more efficient, collaborative, and affordable](https://www.protocol.com/workplace/adobe-figma-dylan-field-user-reactions). Industry insiders, however, don’t understand the dumping. [pointed out](https://twitter.com/Vaskatta/status/1570561388581617664). 15, Adobe announced it was buying the San Francisco-based firm in a [$20 billion half-cash and half-stock deal](https://news.adobe.com/news/news-details/2022/Adobe-to-Acquire-Figma/default.aspx). [tweeted](https://twitter.com/amaldorai/status/1570604636524126210). The deal comes “with access to Adobe’s technology, expertise and resources in the creative space,” CEO Dylan Field [being unaffordable](https://twitter.com/4erepawko/status/1570436634419789826) and [clunky](https://twitter.com/andybudd/status/1570391834622562305). [antitrust issues](https://techcrunch.com/2022/09/15/adobe-is-buying-figma-for-20b-taking-out-one-of-its-biggest-rivals-in-digital-design/) come up and the deal doesn’t go through? 15 blogpost](https://www.figma.com/blog/a-new-collaboration-with-adobe/). [Adobe’s Instagram](https://twitter.com/nbashaw/status/1570419021211901953).” [plummeted 16%](https://seekingalpha.com/news/3883076-adobe-drops-11-on-reaction-to-20b-figma-deal-and-mixed-outlook) on the news, as well on its [mixed bag earnings results](https://www.zdnet.com/article/adobe-q2-a-mixed-bag-as-revenue-falls-short-of-estimates/). [Field’s tweet](https://twitter.com/zoink/status/1355173534390075394?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1355173534390075394%7Ctwgr%5E37eb9a89cff06141b271038df7c523973f593415%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fkinja.com%2Fembed%2Finset%2Fiframe%3Fautosize%3D1id%3Dtwitter-1355173534390075394) from Jan 29, 2021

Investors have argued that Adobe overpaid for a company that was valued at about $10-billion in a private fundraising a little over a year ago.

Either company will have to pay a termination fee of $1-billion if they scrap the deal. It added that Figma’s total addressable market would reach $16.5-billion by 2025 across design, whiteboarding and collaboration. “This partnership will give Figma users access to Adobe’s photography, illustration and video technology, all in one place. Adobe investors were less impressed, driving down the company’s stock by 17% on Thursday. Adobe is one of the most acquisitive companies in Silicon Valley and has bought numerous businesses over the years, as it has looked to defend market share against competitors. David Wagner, portfolio manager and equity analyst at Aptus Capital Advisors, which owns a 1.5% stake in Adobe, said Figma’s annual recurring revenue (ARR) was $400-million, a tiny fraction of Adobe’s $14-billion, making it an unreasonable for Adobe to pay the equivalent of 11% of its market value for 2.8% more ARR.

Adobe announced a deal to pay $20 billion to for a $400 million software company. Here's why that big bet might payoff.

According to Danny Rimer, a partner at Index Ventures which invested in Figma in 2013, “The company was IPO-able. As Narayen said, “Software follows a sort of S curve: performance eventually moves sideways if you do not invest in the right opportunities.” Field — who will report David Wadhwani, president of Adobe’s digital-media business — said that the acquisition will help Figma move faster. Were that growth rate to slow down to 80% a year between 2023 and 2028, the deal could add $13.6 billion to Adobe’s top line five years after the deal closes. The culture of the two companies strike me as compatible. Together, Adobe and Figma will reimagine the future of creativity and productivity, accelerate creativity on the web, advance product design and inspire global communities of creators, designers and developers.” For example, Figma has four million subscribers — two-thirds of whom users aren’t among Adobe’s core designer customers, according to the Journal. Based on the relative scale of the two companies, that price looks exorbitant. Figma’s revenue is expected to grow at 100% between 2021 and 2022. According to the company, “Figma has attracted a new generation of millions of designers and developers and a loyal student following. As CNBC noted, “It’s cheaper (there’s even a free tier), easier to use, collaborative and modern, and has been spreading like wildfire among designers at companies big and small.” Depending on how well Adobe integrates the two companies, their combined competitive advantages could result in faster top-line growth for Adobe.

Design is no exception. Indeed, these groupings – what we call “startup clusters” here at TechCrunch – are fascinating examples of aggregated venture sentiment ...

Click here to find out more about our partners. Find out more about how we use your information in our Privacy Policy and Cookie Policy. You can select 'Manage settings' for more information and to manage your choices.

Many thought the web would be vanquished by mobile and desktop apps. Figma helped the web platform win again — but now it's owned by Adobe.

[Microsoft](https://thenewstack.io/microsofts-collaborative-apps-the-web-is-the-engine/) — to thank for making the web platform so advanced today. [TechCrunch angle](https://techcrunch.com/2015/12/03/figma-vs-goliath/) was that Figma was created to “fight Adobe” (the permalink includes the phrase “figma-vs-goliath”). Although we mustn’t forget the indies, [like Igalia](https://thenewstack.io/igalia-the-open-source-powerhouse-youve-never-heard-of/) and indeed Ricardo Cabello’s Three.js. There was a time when many of us feared that mobile internet and desktop applications (from the likes of Apple and Adobe) would vanquish the web as a developer platform. Then 23-year-old Figma co-founder and CEO, [Dylan Field](https://twitter.com/zoink), said that Adobe “doesn’t understand collaboration” and the Adobe Creative Cloud is “really cloud in name only.” Fighting words, for sure… [in 2005](https://www.nytimes.com/2005/04/19/technology/adobe-buys-macromedia-for-34-billion.html). WebGL, Web Graphics Library, was especially important in Figma — and effectively made it into a Flash-like experience for users. “It’s great to see so many new faces!” the Penpot Twitter account unironically [tweeted](https://twitter.com/penpotapp/status/1570725271539707905) the following day. When Figma was launched in December 2015, the Check spike in SaaS signups and platform activity (create_file event) 🤯🤯🤯 [pic.twitter.com/kmXuazF6fd] At the end of last year, I named Figma one of my Their collective response was best summarized in a brutal tweet by the creator of Three.js, an open source 3D JavaScript framework:

Prior to announcing its intent to buy Figma for $20 billion on Thursday, Adobe's largest deal was its $4.75 billion Marketo acquisition in 2018.

Click here to find out more about our partners. Find out more about how we use your information in our Privacy Policy and Cookie Policy. You can select 'Manage settings' for more information and to manage your choices.

The tech giant has entered into a definitive merger agreement to acquire Figma, a web-first collaborative design platform—and an Adobe competitor—for ...

“It was always a dream of mine to be at the Gap and to bring the best product possible,” he said on “Closing Bell" on Thursday. [click here to apply](https://fortune.com/conferences/the-fortune-cfo-collaborative-chicago/) to join us in Chicago at Sepia on September 22 or [click here to apply](https://fortune.com/conferences/the-fortune-cfo-collaborative-dallas/) to join us on September 29 at The Mansion Turtle Creek in Dallas. [Vanna Krantz](https://fortune.com/2021/12/04/career-rewind-vanna-krantzs-journey-from-the-lobby-of-pwc-to-top-cfo/) was named [CFO at Grindr](https://www.businesswire.com/news/home/20220913005516/en/Grindr-Appoints-George-Arison-as-Chief-Executive-Officer-and-Vanna-Krantz-as-Chief-Financial-Officer), a social network for the LGBTQ community, effective Sept. The Gap allegedly did not meet its obligations in the companies’ agreement, and Ye wasn’t able to set the prices he wanted on his products, Lafouge worked at the Boston Consulting Group in the strategy consulting sector in Europe and South America. [designer tweeted](https://twitter.com/erikdkennedy/status/1570403681761374209): “Figma could’ve built tools to compete—and win—with every Adobe product in the suite. Figma’s technology platform will “accelerate our R&D roadmap, including the delivery of our Creative Cloud technologies on the web, which will allow Adobe to focus and manage our future R&D investments,” Durn said on the call. Seventy-six percent of respondents said digital trust is essential to digital transformation, and 82% said digital trust would be even more important in five years; but just 29% offer staff digital trust training. “In years one and two after the closing, the transaction will be dilutive to Adobe’s Non-GAAP EPS, and we expect it to break even in year three and accretive at the end of year three,” Durn said. “It’s not unprecedented for Adobe to purchase a dynamic competitor,” Jay Vleeschhouwer of Griffin Securities said on the call. And collaborators can’t work in the file at the same time. The transaction, which is the company’s largest acquisition, is expected to close in 2023, pending regulatory approvals, Adobe CFO Dan Durn said.

Multimedia software products maker, Adobe, buys rival Figma in a deal that expands its portfolio of collaboration tools.

“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.” “Adobe is deeply committed to keeping Figma operating autonomously.” “The combined company will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders, and the industry.”