The technology sector in 2025 is experiencing a significant resurgence in initial public offerings (IPOs), with Figma's strong market debut and Canva's increasing valuation highlighting a renewed investor confidence. This trend marks a notable shift from previous years, characterized by a more robust appetite for innovative tech companies.
Figma's entry into the public market on July 31, 2025, was particularly impactful. The design software company's stock surged dramatically on its first trading day, reaching an intraday high of approximately $142.92 after opening at $33 per share. This performance, which valued the company at $19.3 billion at its IPO, was a significant rebound after regulatory bodies in the US, UK, and Europe blocked Adobe's proposed $20 billion acquisition in December 2023 due to antitrust concerns. The termination of the Adobe deal resulted in a $1 billion termination fee paid to Figma, which unexpectedly paved the way for its independent success.
Meanwhile, Canva, the Australian design software firm, has also seen its valuation climb substantially. In August 2025, through a staff share sale, Canva's valuation reached $42 billion, with some reports suggesting a potential IPO valuation between $195 billion and $210 billion in the future. This increase from its October 2024 valuation of $32 billion is attributed to strong investor interest and aggressive AI investments that have reportedly increased its market share by 12.7%.
The broader IPO market in 2025 has mirrored this positive sentiment. By mid-August, 137 IPO deals had been completed, raising $22.6 billion. Larger deals, valued at $100 million or more, have seen a 19% increase in day-one performance. This resurgence is attributed to factors such as stabilizing inflation, a more predictable regulatory environment, and a general investor shift towards small- and mid-cap companies. The success of Figma's IPO has energized the market, setting a positive precedent for other tech companies, including Canva, as they eye future public listings.