Paying 50x ARR is cool again.
Bloomberg reported this Earlier in the day, Adobe was close to buying former startup and private market unicorn Figma for around $20 billion. The Photoshop maker then confirmed the deal in a press release and a brief investor presentation. TechCrunch’s coverage of the announcement is here.
Adobe shares fell more than 15 percent following the news.
The transaction is so big in dollars, it makes it worth it to take out a package. Below, we’ve compiled Figma’s size by revenue data and discussed what the transaction means for similar-sized companies that are facing the current IPO drought, taking into account its cash flow position.
But before we do all that real work, can I just say I’m pretty bummed about the deal?
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Figma is a somewhat familiar startup and venture capital success story. In the year After seeding in 2013, FIMA has attracted $200 million worth of formal foreign investment by mid-2021, valuing the software at around $10 billion, according to Crunchbase data. At one point, investors are only selling at double the exit price, which is lower than what they thought when making the investment. But! For technology companies, doubling valuations in the 2021 era is a big win given how much price bands have changed in the past year.
