To The Moon

$Figma(FIG)$ $CoreWeave, Inc.(CRWV)$ The tech IPO market in 2025 is heating up, with Figma's upcoming public offering on July 31, 2025, poised to challenge the benchmark set by CoreWeave's blockbuster IPO earlier this year. Figma, a cloud-based design software giant, is targeting a valuation of up to $18.8 billion, while CoreWeave, an AI-focused cloud computing platform, raised $1.5 billion at a $23 billion valuation in March 2025. This analysis explores whether Figma's IPO can surpass the hype generated by CoreWeave, examining financials, market conditions, and investor sentiment.

Figma's IPO Details

Figma's IPO is one of the most anticipated tech listings of 2025. The company plans to issue approximately 37 million shares, with a revised price range of $30 to $32 per share, up from an initial $25 to $28, signaling strong investor demand. This offering could raise up to $1.18 billion, valuing Figma at $18.8 billion. The IPO includes 12,472,657 shares offered by Figma and 24,646,423 shares from existing stockholders, with an additional 5,540,561 shares available to cover over-allotments. Figma will trade on the NYSE under the ticker "FIG".

Figma's financial performance bolsters its appeal. In 2024, the company reported $749 million in revenue, a 48% increase from 2023. In Q1 2025, revenue grew 46% year-over-year to $228.2 million, with net income tripling to $44.9 million from $13.5 million in Q1 2024. Despite a $732 million net loss in 2024 due to a one-time stock compensation event, Figma returned to profitability by late 2024 and into 2025, with a 91% gross margin and a rolling 12-month revenue of $821 million. Additionally, 95% of Fortune 500 companies use Figma, and two-thirds of its users are not professional designers, indicating broad adoption across business functions.

Figma's strategic moves, such as integrating AI for rapid prototyping and appointing high-profile board members like Instagram co-founder Mike Krieger and Duolingo CEO Luis von Ahn, enhance its growth prospects. However, competition from Adobe, OpenAI, and Anthropic, particularly in AI-driven design, poses risks to its short-term profitability due to high R&D investments.

CoreWeave's IPO Benchmark

CoreWeave's IPO on March 28, 2025, set a high standard for tech IPOs, raising $1.5 billion at a $23 billion valuation. The stock, listed on NASDAQ under the ticker "CRWV," opened at $39 per share and closed at $40 on its third trading day, reflecting strong market reception. Backed by Nvidia, CoreWeave capitalized on the AI boom, positioning itself as a leader in cloud computing for AI applications. Its IPO was the largest tech listing of 2025, driven by investor enthusiasm for AI-driven growth.

CoreWeave's success was fueled by a favorable market environment, with tech IPOs rebounding after a lull in 2021-2023 due to inflation and recession fears. The company's ability to maintain a stable stock price post-IPO underscores its strong fundamentals and investor confidence in the AI sector.

Comparing Figma and CoreWeave

The following table compares key metrics of Figma and CoreWeave's IPOs:

Market Conditions

The tech IPO market in 2025 is experiencing a resurgence, with 119 IPOs priced through July 28, a 45% increase from the prior year, though total proceeds are down 21% to $18.3 billion. Recent successes, such as Circle's 600% post-IPO surge and CoreWeave's strong debut, indicate robust investor appetite for high-growth tech stocks. Figma's IPO is well-positioned to capitalize on this momentum, particularly given its auction-like structure, which allows investors to specify share quantities and prices to maximize demand.

Company Fundamentals

Figma's financials are compelling, with a 48% revenue increase in 2024 and a projected $1 billion in annual revenue by the end of 2025. Its 91% gross margin and return to profitability in late 2024 highlight its operational strength. CoreWeave, while not disclosing specific financials in the provided data, benefits from its leadership in the AI cloud computing space, a sector with significant growth potential. Both companies operate in high-growth tech sectors, but Figma faces competitive pressures from established players like Adobe and emerging AI-driven competitors, which could impact its profitability due to increased R&D spending

Investor Interest

Figma's IPO is generating significant buzz, with analysts noting its potential to match or exceed CoreWeave's $1.5 billion raise if it prices above its current range. The company's previous $20 billion valuation in the failed Adobe deal and its broad adoption among Fortune 500 companies fuel optimism. CoreWeave's IPO, however, set a high bar with its Nvidia backing and AI focus, which resonated strongly with investors. Figma's auction-like IPO structure and the involvement of prominent investors like Andreessen Horowitz and Sequoia suggest strong institutional demand, but retail investors may face challenges accessing shares at the IPO price due to high demand and potential post-IPO volatility (https://techcrunch.com/2025/07/21/figma-looks-to-raise-nearly-1-billion-as-it-kicks-off-its-ipo-roadshow/).

Risks and Considerations

While Figma's IPO is poised for success, several risks could temper its ability to surpass CoreWeave's hype:

• Valuation Concerns: Figma's $18.8 billion valuation is considered high on price-to-sales and price-to-earnings bases, particularly in the AI-driven design space where competition is intensifying.

• Competitive Landscape: Adobe, OpenAI, and Anthropic pose significant threats, with generative AI potentially disrupting Figma's market. Increased R&D spending to stay competitive may strain short-term profitability.

• Post-IPO Volatility: Recent IPOs, including CoreWeave's, have shown initial surges followed by declines due to lock-up expirations or earnings disappointments. Investors are advised to consider waiting for post-IPO price corrections for better entry points (https://accessipos.com/figma-stock-ipo/).

CoreWeave, while successful, also faces risks in the highly competitive AI cloud computing market, but its Nvidia backing and early-mover advantage have solidified its position.

Conclusion

Figma's IPO on July 31, 2025, is set to be a major event in the tech sector, with the potential to raise up to $1.18 billion at a $18.8 billion valuation. While CoreWeave's $1.5 billion IPO at a $23 billion valuation set a high benchmark, Figma's strong financials, broad adoption, and strategic AI integration make it a formidable contender. The resurgent tech IPO market and Figma's auction-like offering structure enhance its prospects, but competitive pressures and valuation concerns introduce uncertainty. It seems likely that Figma will generate significant hype, potentially rivaling CoreWeave's, but surpassing it will depend on investor confidence in its growth trajectory and ability to navigate competitive challenges. Long-term investors may benefit from waiting for post-IPO price stabilization, while those seeking exposure to a leading design software platform will find Figma's IPO compelling.

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