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Figma's IPO features major stock sell-off

Figma announces unusual IPO with shareholders selling more shares than the company.

July 21, 2025 at 05:50 PM

Figma’s Dylan Field will cash out about $60M in IPO, with Index, Kleiner, Greylock, Sequoia all selling, too

Figma prepares for its IPO with plans for substantial share sales by existing stakeholders.

Figma plans significant stock sell-off in upcoming IPO

Figma is set to make waves in the IPO market by allowing existing shareholders to sell significantly more shares than the company itself will. The company plans to offer roughly 12.5 million shares, while shareholders, including CEO Dylan Field, venture capitalists like Index and Sequoia, can sell nearly 24.7 million shares. Field himself aims to cash out over $62 million, yet will retain a strong ownership stake with 74% of the voting rights post-IPO. If demand allows, existing stakeholders may access an additional 5.5 million shares. This unusual move could help ease liquidity concerns in the current venture capital environment.

Key Takeaways

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Figma allows shareholders to sell nearly double the shares compared to the company itself.

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CEO Dylan Field's share sale could exceed $62 million.

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Post-IPO, Field will hold 74% of voting rights due to supervoting stock.

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Major venture investors are also selling shares to provide liquidity.

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Potential for Figma to become the largest IPO of 2025 if demand is strong.

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Unusual strategy reflects current market dynamics and investor needs.

"Figma's decision to allow shareholders to sell more shares than the company is unusual but strategic."

This move aims to address liquidity needs in a tightening venture market.

"If Figma prices above its announced range, it could become the biggest IPO of 2025 to date."

This projection emphasizes the anticipated demand and interest surrounding Figma's stock offering.

Figma's strategic decision to enable existing shareholders to offload more shares than the company itself is remarkable. In doing so, it addresses investor liquidity needs in a challenging market. While this means less immediate capital for Figma, it also signals confidence in the company's valuation as multiple stakeholders opt to share the financial windfall. If Figma's offering exceeds its anticipated range, it could redefine large-scale IPO expectations for 2025 and set a precedent for how similar companies conduct their public offerings.

Highlights

Existing shareholders are cashing out significantly more than Figma itself.
Dylan Field could walk away with over $62 million from the IPO.
Figma's strategy addresses liquidity needs in a challenging market.
This IPO could redefine expectations for tech company stock offerings.

Concerns over liquidity and market reception

Figma's unusual IPO structure could signal underlying concerns about liquidity in the venture market, as major shareholders aim to exit their positions.

Figma's IPO could reshape pathways for tech companies in lucrative market scenarios.

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