How the Founders of Figma Captivated an Early Backer

The reemergence of the tech IPO landscape was symbolized by Figma's public debut at the tail end of July, following a hiatus that lasted three years.

Terrence Rohan, one of the initial investors in Figma and its inaugural board director, identified the company’s promise far before it stole the spotlight with its IPO.

He shared with Business Insider, "An MBA-style analysis could easily have been crafted on why Figma might not succeed." According to him, the available market appeared too constrained, the competition overwhelming, and financial feasibility seemed doubtful. These factors led to skepticism about the company's destiny.

Nevertheless, Rohan perceived a spark in the visionaries leading Figma, Dylan Field and Evan Wallace.

"Dylan and Evan stood out remarkably, with a clear futuristic vision," he noted, referring to the initial encounter during their seed funding presentation in 2013 when he worked with Index Ventures.

Figma's initial funding, a $3.87 million seed round conducted under Index's lead, marked just the beginning of continued financial support over several rounds, as recorded by PitchBook. During 2013 to 2015, Rohan was the primary board director for Figma. He has since transitioned off the board but still retains his stake in the firm. He participated in their New York Stock Exchange IPO celebration and has ongoing communication with Field, the current CEO.

Figma provides a digital platform for design, enabling creative collaboration on projects like apps, websites, and brand identities. Upon introducing their first collaborative tool in 2015, the idea clashed with traditional paradigms in design, as Dylan Field reflected in a 2020 commentary on Figma's site.

He described it as a bold departure from hierarchical, isolated decision-making processes, challenging established designer practices. Some professionals even told him that if this represented the future, a career change was imminent.

By 2022, Figma had grown to support over 4 million users, which piqued Adobe’s interest, leading to acquisition talks. However, regulatory scrutiny led to the $20 billion deal falling through.

Last month’s public offering significantly exceeded expectations, with demand exceeding supply over forty times and the stock value more than tripling on day one.

Reflecting on his experience, Rohan attributes much of his initial conviction to Field and Wallace's genuine nature and profound self-awareness, qualities he now prioritizes when vetting new founders.

He explained, "Their ongoing journey and skillset uniquely align with the venture's needs, demonstrating an important self-understanding." This sense of authenticity and self-awareness are traits of leaders who comprehend their strengths and the trajectories they should pursue.

In recent months, Figma has broadened its offerings, introducing new features like ideation, prototyping, and website design tools.

Watching Figma’s progression has bolstered Rohan's confidence in his initial investment strategies. Currently the managing director of the Otherwise Fund, some of his notable investments include Hugging Face, Notion, Robinhood, and Vanta.