I did not expect to see Adobe as an example of best practices: ​“Adobe has seen massive outcry from its customers, when their old T&Cs suggested Adobe *could* train on customer work. This is why I’m baffled Figma enrolls paying customers (if they are non-enterprise) to GenAI training, by default.”

June 25th, 5:30–8:30 PM at GitHub’s SF office. ​“You’ll hear from GitHub designers, developers, and researchers, about their work on design systems, accessibility, brand, and AI.” 

“For the first installment in our series, we sat down with the Linear team who put forth a series of principles to guide their own work. Here, co-founder Jori Lallo and Chief Operating Officer Cristina Cordova share why opinionated software is core to Linear’s methodology, and how other teams can adopt it.”

My favorite part from Jori: ​“Many people try to adapt things from the industry that might not actually be applicable to them, or they might not know the potential downside. They were developed at places that are bigger and growing faster than most companies, so you need to try to understand what’s behind them and adapt pieces of them.”

What I like about Linear is how clearly they define principles and ideas that drive their product decisions. You can either love or hate how opinionated they are, but that clarity is admirable. ​“At Linear we believe software can feel magical. Quality of software is driven by both the talent of its creators and how they feel while they’re crafting it. To bring back the right focus, these are the foundational and evolving ideas Linear is built on.”

A talk from Stripe’s Sessions 2024 conference on why well-crafted products are expressions of care and dedication — and how that correlates to business success. Head of Design Katie Dill kicks it off by talking about the value of quality and dispelling some of the myths and common-held beliefs about craft and beauty — that it is ​“in the eye of the beholder,” purely cosmetic, and at odds with growth. In Stripe’s experience, beauty is objective, functional, and support growth.

Later, she invites the cofounder and CEO of Linear, Karri Saarinen, and the CPO of Figma, Yuhki Yamashita, to share their thoughts on craft and beauty. I like Karri’s separation of these concepts — ​“craft is the mindset and activity you do, and the quality and beauty are the output.” You can also read the recap of this talk on the Figma blog.

Apple added nine new design templates for Figma: Apple Pay, App Clips, Live Activities, iMessage apps and sticker packs, Sign in with Apple, App Shortcuts, Tap to Pay, Tip Kit, and Wallet. See also Apple Design Resourcesin the Developer Center.

Mike Rundle points out interesting implementation details in the Apple Design Resources – visionOS file.

I loved this article by Karri Saarinen from Linear on why redesigns are important and its sequel, ​“How we redesigned the Linear UI,” on tackling that kind of project. ​“This incremental way of building the product is hugely beneficial, and often necessary — though it unbalances the overall design, and leads to design debt. Each new capability adds stress on the product’s existing surfaces for which it was initially designed. Functionality no longer fits in a coherent way. It needs to be rebalanced and rethought.”

On paying off the design debt: ​“While the design debt often happens in small increments, it’s best to be paid in larger sweeps. This goes against the common wisdom in engineering where complete code rewrites are avoided. The difference is that on the engineering side, a modular or incremental way of working can work as the technical implementation is not really visible. Whereas the product experience is holistic and visual.”

On exploring the next version without considering practicality: ​“A secret I’ve learned is that when you tell people a design is a ​“concept” or ​“conceptual” it makes it less likely that the idea is attacked from whatever perspective they hold or problems they see with it. The concept is not perceived as real, but something that can be entertained. By bringing leaders or even teams along with the concept iterations, it starts to solidify the new direction in their mind, eventually becoming more and more familiar. That’s the power of visual design.”

The original reporting by Forbes from last month on employee equity packages refresh and severance program. ​“Under Figma’s compensation update, employees who joined the company in the 16 months since the announced Adobe deal will receive additional shares of Figma, up to 70% of the initial intended value of their pay packages negotiated under the higher $20 billion price tag.”

On the updated valuation: ​“Figma’s move comes as the company must readjust to a startup environment more austere than the one during which it raised $200 million at its original $10 billion valuation in June 2021. Over that period, many startup unicorns […] raised down-rounds or saw their prices in the secondary market slashed. In his messaging to staff reviewed by Forbes, Field admitted that he didn’t know exactly what shares of Figma […] were worth.”

Regarding the Adobe acquisition, The New York Times writes about a few things that I don’t remember being covered before: ​“In the spring of 2020, Scott Belsky, Adobe’s chief product officer, tried buying Figma, according to regulatory filings. Mr. Field said no. A year later, Shantanu Narayen, Adobe’s chief executive, tried again. Mr. Field declined. […] In June 2022, Adobe offered to buy Figma again, this time for $20 billion. Figma solicited another buyer and aimed for a higher price, according to a filing, but ultimately accepted the $20 billion. A week before the merger was announced that September, Adobe canceled work on ​“Project Spice,” a new product that regulators said would have put it in direct competition with Figma.”

Sounds like providing employee liquidity and IPO are on the table for the future: ​“Employees and early investors expect Figma to let them sell a portion of their shares this year in what is known as a tender offer, though no plans have been made. The company’s best option for a payout now is to go public, which could take years.”

(Archived link without a paywall.) The Verge sat down with Dylan Field for his first extended interview since the acquisition fell through. First, they discussed the impact on the team — Figma cut internal valuation in half to $10 billion and updated everyone’s comp packages to account for the lost value from the deal not happening. Also, they announced the severance program called Detach (get it?!) for anyone who wanted to leave — around 52 people or 4% of the employees took it.

The company is doing well: ​“The business has been cash-flow positive for a while, I’m told, and it finished 2023 with about $600 million in annual recurring revenue — a roughly 40 percent increase from the year before. […] And Figma is now flush with even more cash, thanks to Adobe having to pay it a hefty $1 billion breakup fee.” Dylan considers using this fee to do more strategic mergers and acquisitions in the future, and has an insightful way of thinking about what kind of products that could be: ​“Let’s figure out the value chain of what it takes to think about, get buy-in for, design, code, ship, and measure software. How do we complete that value chain?”

Love this take on the AI: ​“If you think about what it takes to create great design, there’s so much in that context window that’s emotional or thinking temporally about a brand experience or a user flow. I just don’t see how, in the near term, AI is able to have that as part of its context, which means that humans are providing that.”

That might be 2 too many Adobe news for a single issue, but I’m glad they’re shipping something for the Apple Vision Pro on day 1! From The Verge: ​“Adobe’s Firefly AI, the text-to-image tool behind features like Photoshop’s generative fill, will be available on the Apple Vision Pro as a native app, alongside the company’s popular Lightroom photo editing software already demonstrated during the headset’s announcement.”

(Archive link without a Bloomberg paywall.) RIP Adobe XD. The writing was on the wall even back in 2022, but now I wonder if Adobe will just leave a big gap in a cohesive offering of the Creative Suite? Lively discussion at Hacker News.

“When it agreed to buy Figma, which helps users design app and website interfaces, Adobe put its competing program XD in ​“maintenance mode,” ceasing to launch new features or sell it individually. The deal to purchase Figma fell apart under regulatory pressure in December and the creative software giant hadn’t announced whether it would resurrect XD or attempt to build another competitor. ​“We have no plans to further invest in it,” a spokesperson said Tuesday of XD.”

The Verge with some context on what exactly happened: ​“Last month, the Competition and Markets Authority (CMA) provisionally determined that the deal would harm the product design software market should it go ahead — effectively blocking the acquisition until Adobe addressed the regulator’s concerns, which involves the divestiture of ​‘overlapping operations’ like Figma Design and the company’s competing Adobe XD app. A response to the CMA’s request for remediations, dated December 14th, was published on the Authority’s website on Monday. In short, Adobe is refusing to make any of the suggested compromises to ease the CMA’s concerns, saying a divestment is ​‘wholly disproportionate.’ Adobe said in the statement that it disagrees with the CMA’s findings, and that ​‘no remedy package that preserves the benefits of the transaction will be sufficient to resolve the competition concerns.’”

The ​“compromise” suggested by CMA is pretty wild: ​“The CMA’s recommendations don’t leave Adobe much wriggle room: either Adobe has to sell off Figma Design — Figma’s main product offering and, likely, the biggest motivation behind Adobe’s merger bid — or the deal is blocked entirely.”

Dylan Field: ​“Figma and Adobe have reached a joint decision to end our pending acquisition. It’s not the outcome we had hoped for, but despite thousands of hours spent with regulators around the world detailing differences between our businesses, our products, and the markets we serve, we no longer see a path toward regulatory approval of the deal.”

A super useful video from Akbar, a Developer Advocate at Figma: ​“Want to sync your Figma Variables with your codebase? In this video, we’ll show you how to use our Variables GitHub Action example repo to sync your Figma Variables to your codebase and vice versa.”

UK is following in EU’s footsteps: ​“CMA (Competition and Markets Authority) provisionally finds Adobe’s deal to buy Figma would likely harm innovation for software used by the vast majority of UK digital designers.”

Not sure if the CMA truly understands what each of the apps is for: ​“The inquiry group has also provisionally found that Figma is a credible future competitor to Adobe in image editing and illustration software – and that the threat posed by Figma has driven product development in Adobe’s Photoshop and Illustrator applications, including new web versions. The inquiry group considers that if the deal went ahead, it would eliminate Figma as a competitor which would otherwise have continued to seek to develop its capabilities in image editing and illustration, thereby fuelling innovation and product development by Adobe.”

November 17th, 2023: ​“The European Commission has informed Adobe of its preliminary view that its proposed acquisition of Figma may reduce competition in the global markets for the supply of interactive product design software and of other creative design software.”

Financial Times: ​“Adobe’s $20bn deal to buy Figma is facing a fresh setback as regulators in Brussels prepare to file anti-competitive charges against the companies, an escalation that signals the EU believes the acquisition will harm rivals in the digital design market. […] A preliminary assessment of the deal already revealed a ​“substantial lessening of competition” in the UK. In the US, the Department of Justice is reportedly preparing a lawsuit to block the transaction. Adobe has already indicated it is ready to deal with probes as regulators intensify their scrutiny of large tech transactions.”

Pretty incredible in this economy: ​“Design startup Figma Inc.’s headcount has grown roughly 60% since it announced merger plans with Adobe Inc. in September 2022, a sign the company hasn’t been standing still while it waits for the deal to close.” On the acquisition: ​“The Adobe acquisition is scheduled to be completed by the end of March, though it may be hard to conclude the purchase in that time frame with at least one of the regulatory agencies likely to challenge the deal, Bloomberg Intelligence antitrust analyst Jennifer Rie wrote in September. Adobe may owe the design startup a $1 billion breakup fee if the transaction takes longer than that and the deal collapses, according to the merger documents.” (See the archive link.)