During a VC job interview in 2018, Kyle Harrison built a model with Figma becoming a $19B company in 2025. His analysis was called “unrealistic”. Good thread on compounding growth, and there is a deeper dive in his newsletter.
In 2018 Figma did $4M of ARR. Soon after I had a VC job interview where I did a Figma case study. I built a model with Figma becoming a $19B company in 2025
— Kyle Harrison (@kwharrison13) September 19, 2022
I didn't get the job. They said my analysis was "unrealistic"
A thread on how the best companies compound unexpectedly...
Rafa from Layout FM podcast shares his thoughts and predictions after the acquisition. Also, listen to his podcast episode on this topic.
A good summary of topics discussed at the Figma All-Hands call on September 16th.
Here's the TLDR of the @figma all hands spaces.
— Ashish ✦ ashuxi.eth (@Ash_uxi) September 16, 2022
🧵...
Dann Petty hosted an open chat about Figma’s acquisition with Scott Belsky from Adobe.
If you missed our design chat today about @Adobe + @Figma with @scottbelsky you can listen to the recording 🙌 https://t.co/vPlS8wnlAB
— DANN ツ (@DannPetty) September 22, 2022
Nice thread from Nathan Barry, founder of Convertkit, on Figma’s dominance.
Figma just sold for $20 Billion.
— Nathan Barry (@nathanbarry) September 17, 2022
The highest price ever for a private SaaS company. An incredible 50x multiple their $400 million ARR.
Here are the 10 reasons Figma dominated the design world:
Mike Davidson, ex-VP of Design at InVision and Twitter: “Figma did a lot of things right over the ten (yes, ten!) years they’ve worked on the product, but one thing they did that no one else has been able to replicate is meet and in some cases exceed native app performance inside of a web browser.“ Also: “Within the next several years, it’s going to be possible to go from idea in the morning, to prototype in the afternoon, to working code in the evening… and the company who can do that most thoughtfully is going to be one of the most important companies in the world.”
David Sacks on late bloomers and responsiveness of VC markets. See a more in-depth discussion in Episode 96 of the All-In Podcast.
Figma’s Valuation (purple line; left axis) versus ARR (red line; right axis).
— David Sacks (@DavidSacks) September 16, 2022
Take-aways:
1) Late bloomers can thrive. Founders should never give up.
2) VC markets are highly responsive and slightly ahead of the curve.
We discuss fully on the next episode of @theallinpod. pic.twitter.com/JDnzALwqHK
Andrei Herasimchuk, the ex-Lead Designer at Adobe, shares a list of “big wins” and “small wins” that Figma cofounders and he wrote down in December 2013. Pretty amazing to see how almost all of it is a reality now. (“Modernizing masking & gradient UI” sounds pretty sweet though!)
Found this recently. Taken Dec 2013. It’s the list of things @zoink, @evanwallace, & myself wrote down for @figma while still in the temp office in Palo Alto. The list of “Big Wins” was all Dylan & Evan, esp. the community and team use part. They had the vision, even back then. pic.twitter.com/6mZg6cJvhp
— Andrei Herasimchuk (@Trenti) September 16, 2022
Insightful interview about the role of community in Figma’s go-to-market strategy early on. “As Senior Director of Marketing, Claire Butler joined Figma as one of the first ten employees and the company’s first business hire. She began shaping the company’s bottoms-up growth strategy and laying the track for a vibrant community before the product was even publicly available.” The conversation is also available as a podcast.
An interview with Badrul Farooqi, the first Product Manager (and 18th employee) at Figma. He spent nearly five years at the company and worked on the two largest customer-facing products at Figma: the core design tool and Figma Community. Learn about solving problems for the most discerning customers, the benefits of being an internal transfer PM, how and where to talk to customers for maximum benefit, and more.
Hatch Design Talks podcast interviews Julia Kestner, Manager Designer Advocate at Figma. With Figma being in the hypergrowth phase and expanding in Europe, her job comes with exciting new challenges. The host spoke with Julia about the role of the Designer Advocate, the dangers of becoming too precious with one’s design system, and what we can expect now that Figma is putting more resources in Europe.
Jaelyn Brown shares her experience as an Early Career Program Manager Intern with a focus on developing engagement for HBCUs (Historically Black Colleges and Universities) and HSIs (Hispanic Serving Institutions).
“Cloud 100 leaders from Algolia, Figma, Gong.io, and Papaya Global share their stories from the trenches as they offer both strategic and tactical advice to founders on building enduring businesses.”
To celebrate 10 years of Figma, Dylan Field shares 10 physical objects from Figma’s history that are special to him. The beta notebook and WebGL coffee table are my favorites!
10 years ago, in August 2012, I dropped out of @BrownUniversity to start @Figma with @evanwallace !
— Dylan Field (@zoink) August 11, 2022
We might be in the business of digital design at Figma, but we love physical objects too!
So to celebrate 10 years I'm sharing 10 physical objects that are special to me...
Forbes’ Cloud 100 is a list of the world’s top private cloud companies. Figma keeps climbing higher and higher in this rating — this year it’s #5 on the list, after being #7 last year and #29 in 2020.
In light of the sad news of InVision layoffs, Nathan Barry tried to answer the question of what made Figma so successful that it completely changed the design tools landscape.
InVision announced last week they are laying off 50% of their team (400+ people).
— Nathan Barry (@nathanbarry) July 24, 2022
They definitely made missteps as a company. But from the outside it seems like Figma completely ate their lunch.
What made Figma so successful?
The founder of Cron wondered about this question, and Figma’s Design Director Noah Levin came up with some great links in replies.
Haha yes totally!
— Noah Levin (@nlevin) August 5, 2022
Some relevant links:https://t.co/eOue1DHw7Mhttps://t.co/AcQYLgFQS8https://t.co/8BIf6y60QPhttps://t.co/Xd1KHqxFPi
But yeah there's so much more to it that I'd love for us to share sometime… especially how FigJam has pretty much replaced all "presentations"
Fantastic article by Shirley Miao about the complexities and hidden challenges of building Figma’s dark mode: “We wanted to build a solution that wouldn’t just solve the existing need for a new feature, but would be flexible enough to scale with us as the product evolved. Doing so would make it easier to onboard new engineers, tackle unforeseen challenges, and introduce new themes down the road. The trick was developing an approach that would be easy to implement and maintain, while also ensuring that it was regression proof.”
“On this FINITE Podcast, Jesus Requena, VP Growth Marketing at Figma, shares how reducing customer churn is, yes, about recapturing the interest of waning users, but also about acquiring the right users in the first place.”
I’m not a big fan of Sketch’s “Sketch vs Figma” page, but I had a big laugh over this. Highly resourceful.
Figma vs Sketch vs 🥊 Sketch vs Figma pic.twitter.com/pmIY68uOqT
— Valentin Chrétien 🇺🇦 (@valentinchrt) July 5, 2022