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Figma's 50x ARR Multiple and What It Means for Startup Fundraising

40 points| jsm386 | 3 years ago |tomtunguz.com

11 comments

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forbiddenvoid|3 years ago

Adobe did not buy Figma at a 50x multiple because it thinks Figma is worth that much. It bought the company at 50x because it was a number Figma's board couldn't say no to, and removes their stiffest competition in a quarter century in the process.

tough|3 years ago

Maybe they should have stayed put and let them grow further? What's stopping now a Figma-like, possibly COSS app to emerge? Penpot might not be it, but something new?

cyanydeez|3 years ago

Means nothing unless your startup will eat adobes lunch.

SilverBirch|3 years ago

It seems strange to me - if the only possible way of valuing Figma at it's sale price is to assume that Adobe is doing something massively anti-competitive then surely a regulator can't stand for that right?

joshu|3 years ago

factor in lost revenue due to market cannibalization for adobe? might make more sense

random314|3 years ago

The regulators should be blocking such acquisitions

Kon-Peki|3 years ago

Sure seems like they will, but it will probably take a month or more to find out if they will try.

In the meantime, Adobe gets to see the inside of Figma, poke around the code, etc? I wonder if that is the plan: Suck up as much information as possible before the regulators shut it down. Sorry, it's not our fault we can't give you $50 billion and have you join the team...