Figma's 50x ARR Multiple and What It Means for Startup Fundraising
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Re: Figma's 50x ARR Multiple and What It Means for Startup Fundraising
#2factor in lost revenue due to market cannibalization for adobe? might make more sense
Re: Figma's 50x ARR Multiple and What It Means for Startup Fundraising
#3Means nothing unless your startup will eat adobes lunch.
Re: Figma's 50x ARR Multiple and What It Means for Startup Fundraising
#4Adobe 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.
Re: Figma's 50x ARR Multiple and What It Means for Startup Fundraising
#5Adobe 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.
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?
Re: Figma's 50x ARR Multiple and What It Means for Startup Fundraising
#6Adobe 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.
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?
Nothing but the cost, marketing, and effort to rebuild yet another design app.
"Why would I use that when I can get figma, XD, or zeplin"
Re: Figma's 50x ARR Multiple and What It Means for Startup Fundraising
#7Adobe 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.
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?
Adobe's market cap is $150bln. At some point, if Figma continued to grow then they might not have been able to make an attractive offer.
That's a problem they felt was worth $20bln to avoid.
Re: Figma's 50x ARR Multiple and What It Means for Startup Fundraising
#8Adobe 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.
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?
Collaboration software have network effects.
Re: Figma's 50x ARR Multiple and What It Means for Startup Fundraising
#9The regulators should be blocking such acquisitions
Re: Figma's 50x ARR Multiple and What It Means for Startup Fundraising
#10It 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?