Iconiq’s Will Griffith explains how his firm celebrated Figma’s IPO and why investors sold shares

San Francisco, CA – Iconiq’s Will Griffith, a prominent figure in venture capital, has shed light on the celebratory atmosphere at his firm following Figma’s highly anticipated Initial Public Offering (IPO) and provided insights into why existing investors chose to sell shares during the event. Figma, the innovative design software company, saw its stock soar on its public debut, marking a significant milestone for its founders and early backers like Iconiq.

Griffith’s journey with Figma began remarkably early, just two months into his tenure at Iconiq, when he encountered a then 19-year-old college dropout, Dylan Field. This meeting laid the groundwork for one of Iconiq’s most successful seed investments, in a startup that would redefine the design software landscape.

On Thursday, July 31, 2025, Figma went public with its stock surging from an opening price of $33 to close at an impressive $115.50, achieving a market capitalization of $47 billion, as reported by TechCrunch. Griffith’s admiration for Figma is palpable, describing user conferences where attendees display an almost fervent loyalty, with thousands even sporting Figma tattoos.

When Griffith first met co-founders Dylan Field and Evan Wallace in 2013, they were largely untested, as was Iconiq itself, then known as a discreet wealth management firm serving tech moguls. However, Figma already had an influential champion: Jeff Weiner, formerly CEO of LinkedIn, who had mentored Field and subsequently introduced him to Griffith.

Recalling the early days, Griffith told TechCrunch, “We got connected to Figma before we had an early fund, before we had any venture fund.” He vividly remembers visiting Field and Wallace in a Palo Alto apartment, observing their groundbreaking work on browser-based graphics and design capabilities using WebGL. This was revolutionary at a time when Adobe dominated the graphics design market with its desktop software. Griffith admits, “I thought it was insane.”

The innovative concept was so unproven that even Alexis Ohanian, co-founder of Reddit and an investor through Initialized, passed on Figma years later in 2016, a decision he candidly shared in a tweet, calling Figma an “embarrassing miss-list” entry.

Despite the skepticism, Griffith invested. Figma’s seed shares were initially priced at $0.0878 each, as disclosed in its S-1A filing. Iconiq continued to invest through subsequent rounds, contributing to Figma’s total venture funding of approximately $332 million through 2024, according to PitchBook estimates.

“We invested in the seed. We invested in the Series A. We invested further. We did some secondary and we also invested more meaningfully a year ago,” Griffith stated, underscoring Iconiq’s deep and prolonged commitment to the company.

While Iconiq did not acquire a stake large enough to require public disclosure (i.e., less than 5%), its significant ownership ensures the IPO is a cause for celebration at their offices. Griffith revealed one of their unique traditions: a firm-wide prediction contest for the closing stock price on IPO day, with enticing prizes ranging from cash bonuses to trips to Hawaii for those who accurately predict the figure.

Addressing the unusual aspect of this IPO—where most shares sold came from existing investors rather than new shares issued by the company, including Dylan Field’s own stake, as reported by TechCrunch and another TechCrunch report—Griffith offered his perspective. “I think it’s very generous that existing investors are willing to sell as much to create enough supply for this IPO,” he commented.

Figma’s robust fundamentals meant its IPO was oversubscribed by 40 times, according to Bloomberg. Griffith explained that such high demand can be challenging. Large institutional investors require substantial share availability, and an insufficient float can artificially inflate prices, leading to improper valuation. Conversely, a post-IPO decline could unjustly devalue the company. He noted that Figma’s existing shareholders were reluctant to sell at the initial $33 price, with Iconiq itself planning to be a “meaningful buyer in the IPO.”

For Griffith, IPO day is merely a significant milestone, not the culmination of Figma’s journey. He expressed immense pride in witnessing Dylan Field mature and grow as Figma’s CEO, while maintaining his foundational vision, morals, and authenticity. As Figma celebrates its new chapter, Griffith affirmed his own commitment to the future, stating he would spend Figma’s IPO day meeting with “the next generation of founders.”