Figma

Figma is a cloud-based collaborative design platform that allows teams to work together on a virtual canvas to visualize and create new projects in real time. It offers a range of features, including sticky notes, emojis and drawing tools, pre-built lines and connectors, and cursor chats. In addition, Figma products include voice chat, which means users do not need to log in to Zoom or Google Meet while using Figma. Figma caters to individual designers, small firms, and enterprises with 80% of its users outside the US (December 2019). The platform focused on providing an end-to-end to separate itself from peers by adding more features to its platform or growing inorganically. The company reported that it has seen its user profile expand from design teams to usage across entire organizations (outside design teams) during the Covid-19 pandemic.

The company launched a whiteboard tool for flowcharts and brainstorming called FigJam ( April 2021 ) which caters to non-design users. In October 2021, FigJam introduced plugins and widgets, enabling users to customize their spaces with productivity, note-taking, and data visualization tools. It also introduced “Open Sessions”, allowing companies to invite external parties to their sessions for 24 hours, without an account.

Figma operates a subscription-based business model which includes a freemium plan and paid plans ranging between USD 12 to USD 45 per user per month. FigJam is also available on a freemium basis and paid plans were reduced (October 2021), ranging between USD 3 to USD 5 per user per month.

In June 2023, Figma acquired Diagram, an AI-powered design platform, to enhance its tools with advanced AI features, offering users expanded design capabilities.

In July 2024, Figma had temporarily disabled its AI-powered ‘Make Design’ feature following claims that it plagiarized Apple's Weather app.

Funding and financials

Figma announced a USD 200 million Series E funding round led by Durable Capital Partners in June 2021 . The round valued Figma at USD 10 billion and followed its USD 50 million funding round in April 2020. The fresh funds were expected to be used for product development, expanding its offering, and increasing its employee base to 500 by the end of 2021. Furthermore, it planned to explore the M&A market.

In September 2022, Adobe entered into an agreement to acquire Figma for USD 20 billion. However, by December 2023 the firms abandoned the deal due to the failure to overcome regulatory clearances and other concerns.