When Figma IPO’d, it wasn’t just another tech listing. It was a category leader with real usage, strong product-market fit, and genuine adoption across startups and enterprises.
Now it’s down \~80%. Here’s the question that actually matters: Was it a bad company… or just a bad entry?
An 80% drawdown doesn’t automatically mean “bullet dodged.” It can mean one of three things:
1. Valuation was detached from reality.
2. Growth expectations were unsustainably priced in.
3. Liquidity conditions changed -and multiples compressed.
In a higher-rate environment, the market doesn’t pay for potential the same way it did in 2021. It pays for cash flow visibility. So I’m not asking “do you regret buying?” I’m asking:
• Has the business structurally weakened?
• Is growth decelerating permanently?
• Or did the multiple just normalize?
Great products don’t always make great stocks -timing and price matter.
Curious how people are viewing this now: value trap, long-term compounder at a reset valuation, or still too early?