Figma, the design software company, experienced a volatile trading period following its initial public offering (IPO) on July 31, 2025. The shares debuted at $33 per share, a price set deliberately lower to attract long-term institutional investors, including a $1 billion breakup fee related to a blocked $20 billion acquisition attempt by Adobe in 2022. The stock surged rapidly, reaching a high of $143, representing a 250% gain and a market capitalization near $68 billion. However, the price declined sharply in the days after the IPO, falling as much as 45% from its peak to around $88.60 by August 4, resulting in a loss of approximately $21 billion in market value. Despite the pullback, the stock remains about 160% above its IPO price, reflecting strong investor interest but also raising questions about valuation amid expectations of slowing revenue growth. The IPO was noted for its limited float of about 7%, which fueled initial price volatility due to tight supply and retail investor demand. Figma's CEO Dylan Field has emphasized the broader significance of design and the transformative potential of AI in the industry. The company's fully diluted valuation now stands at approximately $56 billion, nearly triple the value of Adobe’s 2022 offer. The IPO is considered one of the most impactful market debuts in recent years, though it has prompted debate about IPO pricing, venture capital returns, and market dynamics. Meanwhile, other startups such as Firefly Aerospace, Heartflow, and WhiteFiber are anticipated to go public soon, continuing the active IPO environment.