UPDATE: Former FTC chair Lina Khan is celebrating the remarkable IPO of Figma, which launched with a valuation of $19.3 billion on October 12, 2023. The design company closed at an astonishing 250% above its asking price, valuing it at nearly $68 billion and providing a significant windfall to investors.
Khan took to social media to highlight the achievement, referencing the failed merger with Adobe that was scuttled under regulatory scrutiny in late 2023. “A great reminder that letting startups grow into independently successful businesses, rather than be bought up by existing giants, can generate enormous value,” she stated in a post on X.
This IPO marks a significant victory for Khan and her agenda to enforce stricter antitrust measures against Big Tech. The Adobe-Figma merger, valued at $20 billion, collapsed in December 2023 after facing fierce opposition from regulatory bodies in both the U.S. and Europe.
Khan led the Federal Trade Commission from 2021 to 2025, advocating for policies that prioritize innovation and competition. Her stance has attracted both support and criticism, particularly within Silicon Valley, where some industry leaders argue that her efforts hinder potential growth.
“Figma is a massive success, but it’s because of the company’s innovative growth and not due to the FTC and Khan,” said tech analyst Dan Ives from Wedbush Securities.
Despite the mixed reactions, the IPO signals a broader shift in the tech landscape. Louis Lehot, a Silicon Valley partner at Foley & Lardner, remarked that while the IPO is indeed a success story, it also reflects a missed opportunity with the Adobe merger. “There’s a hint of schadenfreude in celebrating independent success while dismissing the potential upside of the Adobe-Figma merger,” he noted.
The implications of Figma’s success extend beyond just financial metrics. It represents a growing movement towards empowering startups to thrive independently, a principle championed by Khan. As regulatory scrutiny of tech giants continues, analysts suggest this could pave the way for a new era of innovation.
Figma’s rise comes at a crucial time when the tech industry is grappling with the balance between competition and collaboration. With Khan’s antitrust measures gaining traction, industry watchers will be closely monitoring how this impacts future mergers and acquisitions.
As the dust settles on this IPO, the tech community is left to ponder the future landscape of innovation, competition, and the role of regulatory bodies in shaping it. Stay tuned for further updates as this developing story unfolds.
