As Figma releases, the much-anticipated turning point for the recovery of the IPO market will take shape

They are about the past and future, about public companies and the wider market. IPOs are moments of truth. Do open market investors literally buy what they’ve supported for years? It is also an event that tests how people think about the broader IPO market. Did we, after all, come back?

On Wednesday, Figma, the design software Unicorn led by Dylan Field, completed its initial offer, raising revenues ($1.4 billion if excess changeovers included) for the company and its initial shareholders, showing strong demand for the stocks that are opening trading on the New York Stock Exchange today. Figma sailed through investors’ roadshows, raising the stock price from the initial $25 to $28 range to the price of $33. And the $19 billion valuation that Figma won in the IPO after the company’s planned $2 billion merger and Adobe collapsed a year and a half ago is a very remarkable testament to its potential as an independent business.

Derek Hernandez, senior emerging technology analyst at Pitchbook, said Figma was close to 50% year-on-year compared to the success of its late IPOs, earnings in the first quarter, with net profits of $44.9 million in the first quarter.

“Figma also stands out among recent high-growth software IPOs such as Circle and CoreWeave,” Hernandez said in an email. “Figma is both size and revenue, and is a prime example of a company backed by a high-growth VC with a strong narrative that is market-driven, positioning it as one of the most reliable high-growth lists of this year.”

This is ultimately highly praised. In June, the price of the Stablecoin Firm Circle was $31 per share, closing at around $190 yesterday, but CoreWeave’s first Muted IPO is still up about 150% per year. Of course, high ratings also mean high expectations. This has probably been true for a long time to Figma. Looking at the company’s SEC filings, it shows that four incredible top VC companies have stocks in Figma, located north of Index, Greylock, Kleiner Perkins and Sequoia.

And while the fallout from the failed Adobe merger was publicly released, the attempted merger remains in the background as a positive signal that “it served as a massive verification of Figma’s strategic importance and market position,” said Greg Martin, managing director of Rainmaker Securities. Adobe is looming on Figma’s past and future, Martin added. Martin said Figma has both the opportunity and challenge of “overtaking Adobe as a leading design software company, a cloud-native collaborative platform.”

One interesting detail: Figma itself only raised $411 million. Most of the revenue goes to a group of sales shareholders (including VCs) who each take small slices from the table. However, the largest selling shareholder is the MCF Gift Fund, a MCF Gift Fund, a part of the Marine Community Foundation and a charity, selling 13.4 million shares for $441 million.

But for today, it appears that the figma could be a harbinger of the simmering truth. The market for venture-backed IPOs is undergoing a thoughtful recovery. Pitchbook’s Hernandez has noted in an email that 119 offers year-on-year.

“Fipma could serve as a market bell today,” Hernandez wrote. luck. “It could provide proof of concept for other SaaS names such as Canva, Netskope, Databricks, and more. Especially with all its strengths, if Figma stumbles out of the gate, this could increase some attention among the late VCs and delay other large technology floats.”

This is not the 2021 flood, but it is also not the early drought of 2024.

“While investor appetite has been selective, Figma shows that there is still strong demand for companies with compelling growth stories, strong fundamentals and clear differentiation, especially in categories such as SaaS and AI,” Martin of Rainmaker Securities said in an email. “We’re not back in the bubble environment of 2021, but quality companies are starting to successfully test their water again.”

If the IPOS is a prism, then Figma is a flash point. Now we see what shines.

introduction Terminology Sheet Podcast… A few years later, your inbox will have a term sheet appearing in your local podcast feed. Today we are launching Terminology Sheet Podcast– Make this long and beloved newsletter lively with audio and video. Every week I sit with investors and founders, breaking the biggest deals in the trade and dropping at least one father’s joke. First: Will Hurd, Chief Strategy Officer at Chaos Industries. He is a presidential candidate, a House of Representatives and an undercover agent for the CIA. You don’t want to miss it, so ask here. And, as always, hot take, reviews, and general feelings alexandra.garfinkle@fortune.com.

see you tomorrow,

Alligarfink
X: @agarfinks
Email: alexandra.garfinkle@fortune.com
Submit a Terminology Sheet Newsletter Agreement here.

Joey Abrams curated the trading section of today’s newsletter. Subscribe here.

Venture deals

– lampthe New York-based financial management platform has raised $500 million in Series E-2 funding. iconsq Leading the round and participating Sutter hill Venture, Light Speed Venture, T. Rowe Price Associates, GVand others.

– Oxide Computer Companythe Emeryville, California-based cloud computing company raised $100 million in Series B funding. US Fund for Innovation and Technology Leading the round, with existing investors joining Solar Eclipse, Intel Capital, Riot Ventureand others.

– MotivationSan Francisco-based integrated operations platform for the AI-powered physical economy, raised $150 million in funding. Cliner Perkins Leading the round and participating Alliancebernstein Existing investors.

– The safety of the prophetthe Palo Alto, California-based security platform has raised $30 million in Series A funding. Accel led the round and took part Bain capital Venture others.

– playerzeroan Atlanta-based forecast software company that fixes coding issues before using AI agents to solve coding issues, raising $15 million in Series A funding and $5 million in seed funding. Foundation Capital led the Series A round, with Green Bay Ventures leading the seed round.

– C8 Healththe New York City-based implementation platform for the Practice Implementation Platform raised $12 million in Series A funding. Team 8 Leading the round and participating 10d and vertex Venture Israel.

– Metaformthe San Francisco-based AI platform for market research agencies raised $9 million in Series A funding. peak xv partner Leading the round and participating Nexus Venture partner and together Fund.

– Florision SolutionSouth Bend, Indiana-based company developed AI-driven yield and quality analysis for protein production, raising $8.7 million in Series A funding. Insight partner Leading the round and participating Ceraventure, SOSVand Rock start.

– CyataTel Aviv’s Control Plane for the Israeli-based agent identity, raised $8.5 million in seed funding. TLV partner He led the round.

– Runloopthe San Francisco-based infrastructure platform for developing and deploying AI coding agents, has raised $7 million in seed funding. General partnerships Leading the round and participating Blank Venture.

– runrevealAustin, Texas-based security data platform has raised $7 million in seed funding. rib Leading the round and participating runtime Venture, Modern technical Fund, Octa Ventureand an angel investor.

– Tonic Security, Tel Aviv, an Israel-based cybersecurity startup, has raised $7 million in seed funding. Herz Venture Leading the round and participating Vicy Venture Angel Investor.

– caseflood.aia San Francisco-based legal AI agent raised $3.2 million from Acquisition.com, Y Combinator, Rebel Fund, Capitals of four cities, elevation capital, amino capitaland others.

– Dawnguardthe Amsterdam-based cybersecurity company raised $3 million in pre-seeded funds. 9900 capital The round led and angel investors joined.

Private Equity

– ContentsQuareis backed up No. 6 streetobtained Loris you havea conversation intelligence platform based in New York City. Financial conditions have not been disclosed.

– DataServportfolio company Renovation capitalIt is fused with FactXan IT and consulting company based in North Andover, Massachusetts. Financial conditions have not been disclosed.

– KKR Acquired a majority stake Healthcare loyalty partnerBiopharma Royalty Company based in Stamford, Connecticut. Financial conditions have not been disclosed.

– partner group I won minority stakes Nzumi networkSwiss industrial cybersecurity software providers, San Francisco and Mendricio. Financial conditions have not been disclosed.

other

– Evercore I agreed to get it lobby WarshowLondon, an independent UK-based advisory firm, is considering a total of $199 million.

– Silvaco I agreed to get it Mixel groupa mixed signal IP provider based in San Jose, California. Financial conditions have not been disclosed.