>* Startup valuations have fallen. Ignoring regulatory concerns, a new acquisition deal today would be cheaper.
Figma reached $400M in 2022 and on its way to hit $600M this year 2023. For perspective they reached $200M in 2021, and $75M in 2020. That is pretty impressive growth rate.
Straightly on a revenue / market cap, Adobe makes $20B Revenue and values at $270B. That is 13.5x multiple. If we expect Figma to hit $1B mark by 2025, they could be worth $13.5B. i.e Even with today's market, I dont think it is hard to do an IPO with that $13.5B valuation.
And if Adobe were to acquire a listed company with 30% premium, that is $17.5B. Not that far off from $20B. Now that Figma has an extra $1B cash flow, I hope they spend it wisely and continue to do well. So while some may argue this is bad for employees and investors. I dont think it is that bad.
I do hope they consider IPO, as I am slightly worried the window of opportunity may be gone when market turns.
Figma reached $400M in 2022 and on its way to hit $600M this year 2023. For perspective they reached $200M in 2021, and $75M in 2020. That is pretty impressive growth rate.
Straightly on a revenue / market cap, Adobe makes $20B Revenue and values at $270B. That is 13.5x multiple. If we expect Figma to hit $1B mark by 2025, they could be worth $13.5B. i.e Even with today's market, I dont think it is hard to do an IPO with that $13.5B valuation.
And if Adobe were to acquire a listed company with 30% premium, that is $17.5B. Not that far off from $20B. Now that Figma has an extra $1B cash flow, I hope they spend it wisely and continue to do well. So while some may argue this is bad for employees and investors. I dont think it is that bad.
I do hope they consider IPO, as I am slightly worried the window of opportunity may be gone when market turns.