![]() ![]() ![]() Investors in the 2021 round doubled their money. That means they'll each return over $1 billion. The three venture firms that led Figma's earliest rounds - Index Ventures, Greylock Partners and Kleiner Perkins - all own percentage stakes in the double-digits, people familiar with the matter said. In such an environment, Figma's ability to exit at double its price from 15 months ago is a coup for early investors. venture-backed software M&A was tracking to its worst year since 2017." Tomasz Tunguz of Redpoint Ventures wrote in a blog post on Thursday that prior to this deal, "U.S. Given the plunge in cloud stocks, late-stage companies have steered cleared of the IPO market - and private financings in a lot of cases - to avoid taking a haircut on their lofty valuations. For the top cloud companies in the BVP Nasdaq Emerging Cloud Index, forward multiples have fallen to just over 9 times revenue from about 25 in February 2021. That's why Adobe is paying roughly 50 times revenue following a stretch this year that saw investors dump stocks that were commanding sky-high multiples. ![]() "This was very much both a defensive move but also an eye towards this trend where design rules and design matters." "This was a significant threat to Adobe," Lo Toney, founding managing partner of Plexo Capital, which invests in start-ups and venture funds, told CNBC's "TechCheck" on Thursday. Annualized recurring revenue is poised to more than double for a second straight year, surpassing $400 million in 2022. It's cheaper (there's even a free tier), easier to use, collaborative and modern, and has been spreading like wildfire among designers at companies big and small. There was no other bidder out there driving up the price, according to a person familiar with the matter who asked not to be named because the details are confidential.įigma's cloud-based designed software has been a growing headache for Adobe over the last few years. In a year that's featured exactly zero high-profile tech IPOs and far more headlines about mass layoffs than big funding rounds, Adobe's $20 billion acquisition of Figma on Thursday is what some might call a narrative violation. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower His opinions remain his own and are unaffected by The Motley Fool.Best Debt Consolidation Loans for Bad Credit If you choose to subscribe through his link, he will earn some extra money that supports his channel. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. and short January 2024 $430 calls on Adobe Inc. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe Inc. The Motley Fool has positions in and recommends Adobe Inc. and has the following options: long January 2024 $420 calls on Adobe Inc. Jason Hall has no position in any of the stocks mentioned. *Stock Advisor returns as of August 17, 2022 wasn't one of them! That's right - they think these 10 stocks are even better buys. They just revealed what they believe are the ten best stocks for investors to buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* When our award-winning analyst team has a stock tip, it can pay to listen. *Stock prices used were the afternoon prices of Sept. Fool contributors Jason Hall and Jeff Santoro discuss the details and whether it was a mistake or a smart move for Adobe. While not a competitor, Figma certainly represents a threat to Adobe. Adobe (NASDAQ: ADBE) is paying a massive premium to buy Figma, a $20 billion price that's 50 times Figma's sales last year. ![]()
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