Why I'm Bullish on Figma $FIG

When evaluating a company's investment potential, it's easy to get lost in the labyrinth of financial statements, revenue projections, and profit margins. While these metrics are undeniably crucial, I believe the true insight into a business's enduring value often lies in its tangible impact on the real world.

Consider a company like Uber. Despite its early losses, it demonstrated profound real-world utility by becoming the primary way many of us get rides from the airport to our hotel or home, and also transforming into the main platform for ordering food delivery. Similarly, Figma's true strength as an investment is rooted in its indispensable contribution to the digital experiences that billions of people encounter every single day.

In the 13 years since Figma's founding, the amount of software in the world has exploded, with worldwide software spending expected to exceed $1.2 trillion in 2025. This explosion is further amplified by generative AI, which has made digital products more ubiquitous and significantly easier to build.

International Data Corporation ("IDC") estimates there will be more than one billion new apps in the world by 2028. As a platform that's quickly becoming the system of record for design and product development, Figma is exceptionally well-positioned to benefit from this monumental growth.

I believe that, in today's world, design and a company's brand matter more than ever. The sheer volume of software means companies must increasingly vie for customer attention, and it is the well-crafted, thoughtfully-designed brands, products, and user experiences that will truly stand out. Moreover, as companies are still in the early phases of incorporating AI into their products, I anticipate immense innovation in the years to come around the design of new interfaces and interaction paradigms that are truly AI-native. Like the foundational shifts to mobile and the cloud, I believe broader usage and adoption of these new technologies will be fueled by great design.

Figma has rapidly ascended to become the "system of record" for design and product development, a pivotal role in an era defined by the exponential growth of software. In a world where virtually every interaction, from ordering groceries to managing finances, happens through digital interfaces, the quality of user experience (UX) and user interface (UI) is paramount. Figma acts as the single, authoritative source for how these digital products should look, feel, and function, serving as the foundational blueprint before a single line of code is even conceived.

The real-world value Figma brings is often an invisible hand guiding our digital lives. When I seamlessly navigate Google Maps to find my way, effortlessly request a ride with Uber, or intuitively stream a show on Netflix, I am experiencing the direct result of design teams leveraging Figma. LinkedIn's professional polish, Duolingo's engaging learning environment, Mercado Libre's user-friendly marketplace, and Airbnb's intuitive booking process all owe a significant part of their "niceness" and functionality to the collaborative design workflows enabled by Figma. Without a platform like it, the digital products I rely on daily would likely be clunkier, less intuitive, and far less convenient, diminishing my overall digital quality of life.

This profound impact on the end-user experience directly fuels a growing trend in the software industry: product-led growth (PLG). In a PLG strategy, the product itself becomes the primary driver of user acquisition, retention, and expansion. A superior, well-designed product naturally attracts and keeps users, reducing reliance on traditional sales and marketing efforts. Figma, by enabling teams to create exceptional and user-centric designs with unprecedented speed and collaboration, is a key enabler of this powerful business model. It allows companies to prioritize the user experience, knowing that a delightful product will inherently drive growth.

Taking a step back, investing in Figma is akin to investing in the very future of how software is conceptualized and constructed. It's a bet on a company that has not only fundamentally transformed the design and product development workflow for countless organizations worldwide but also continues to innovate. With features like Dev Mode, which bridges the gap between designers and developers, and its foray into AI-powered tools, Figma is constantly expanding its ecosystem and ensuring its continued relevance in the evolving digital landscape. Its highly efficient business model and strong market position further underscore its financial viability.

Figma estimates its total addressable market to be $33 billion today, encompassing the "global workforce engaged in software design." This market, identified by IDC, is expanding, with the number of participants involved in the product development process projected to reach 144 million by 2029.

Figma's founding vision was to eliminate the gap between imagination and reality. Thirteen years later, the shift from a physical to a digital economy, coupled with huge advances in AI and Figma's own evolution from a design tool to a comprehensive design and product development platform, has brought this aspiration even closer within reach. This vision inspires Figma to think bigger about its role in extending the power of design to more people, ensuring that anyone, whatever they want to design, will be able to make it in Figma.

In conclusion, my bullish stance on Figma transcends mere financial figures. It's rooted in the profound and pervasive real-world value it delivers. By empowering the creation of functional, convenient, and delightful digital experiences that billions depend on daily, Figma has become an indispensable backbone of the modern software economy. It's a company that doesn't just generate revenue; it shapes the very fabric of our digital interactions, making it a compelling and forward-looking investment.

About Me

I am an independent personal finance writer and blogger. I do not have any formal training or certifications in finance, but I have a deep passion for the subject and have been researching and writing about personal finance topics for several years.

Disclaimer

The information provided in my articles is for educational and informational purposes only. It is not intended to be a substitute for professional financial, investment, or tax advice.

I encourage you to do your own research, consult with a licensed financial advisor, and make decisions that are best suited to your individual financial situation and goals. I cannot guarantee any specific outcomes or results from following the advice in my articles.

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I/We have submitted a bid for $FIG through Robinhood IPO Access.