The Figma business model is based on paid subscriptions, and it is centered around its collaborative design tool, which allows users to create and edit designs in real time. The tool was made for a variety of design purposes, including UI and UX design, graphic design, prototyping, and wireframing. Figma’s freemium model has proven to be successful, with many users opting for the free version of the tool before upgrading to the paid version.
Figma is a popular collaborative design tool that has taken the design industry by storm since its launch in 2016. The company has experienced rapid growth, with a valuation of $10 billion as of June 2021. Figma’s business model is based on a freemium model, with the core product being free for up to three editors.
Figma is also poised to generate revenue from Figjam, a whiteboarding tool that will be out of its free beta in 2022. This new product is expected to further expand Figma’s revenue streams and solidify its position as a leader in the design industry.
A brief history of Figma
Figma is a collaborative web application for interface design that was founded in 2012 by Dylan Field and Evan Wallace. The company’s mission was to create a design tool that was accessible to everyone, regardless of their location or device. Figma’s founders believed that the future of design was in the cloud, and they set out to create a tool that would allow designers to collaborate in real time, from anywhere in the world.
In 2013, Figma launched its first beta version, which was met with great enthusiasm from the design community. The tool’s intuitive interface and real-time collaboration features quickly made it a popular choice among designers who were looking for an alternative to traditional design tools like Adobe Photoshop and Sketch. Over the years, Figma has continued to grow and evolve, adding new features and functionality to its platform.
In 2016, the company launched its desktop app for Mac and Windows, which allowed users to work offline and take advantage of Figma’s powerful design tools. In 2019, Figma introduced its Community product, which allowed both Figma and outside developers to share design files, plugins, and widgets that enhance the overall product experience for everyone involved. This move helped Figma to further establish itself as a leader in the design space, and it has continued to grow in popularity ever since.
Today, Figma is one of the most popular design tools on the market, with over 4 million users worldwide. The company has raised over $200 million in funding and is valued at $10 billion, making it one of the most valuable startups in the world. With its focus on collaboration, accessibility, and innovation, Figma is poised to continue its growth and success for years to come.
Who Owns Figma
Figma was founded in 2012 by Dylan Field and Evan Wallace, who were both computer science students at Brown University at the time. Since then, the company has grown to become one of the most popular design and prototyping tools in the world, with over a million users and a valuation of $20 billion after being acquired by Adobe in 2022.
Field and Wallace each own an estimated 10% of Figma, according to Forbes. This means that they are both near-billionaires, assuming Forbes applies a 10% private-company discount. However, it is unclear how much of the company they still own after the acquisition by Adobe.
Other major investors in Figma include Index Ventures, Greylock Partners, and Kleiner Perkins. The company has raised a total of $132.9 million in funding over seven rounds, according to Crunchbase.
Despite being acquired by Adobe, Figma will continue to operate as an independent entity with its own brand and leadership team. This means that the founders and investors will still have some level of ownership and control over the company, although the specifics of the deal have not been disclosed.
Figma Mission Statement
Figma’s mission statement is “to make design accessible to all.”
They believe that anyone, regardless of their background or skill level, should be able to create beautiful and practical designs. Figma aims to achieve this by providing a platform that is easy to use, collaborative, and cloud-based, allowing designers to work together in real time from anywhere in the world.
They also strive to create a design tool that is both powerful and intuitive, enabling designers to quickly create prototypes and designs that can be easily shared and iterated upon.
How Figma Works
Figma is a collaborative design application that allows users to work on projects over a web browser. It is a cloud-based software that enables users to create, share, and collaborate on design projects in real time. Figma is designed to help teams work together on design projects, regardless of their location.
Figma’s user interface is intuitive and user-friendly, making it easy for designers to get started with the platform. The tool is accessible from any device with an internet connection, allowing users to work on their projects from anywhere. One of the key features of Figma is its real-time collaboration capabilities. Multiple users can work on the same design project simultaneously, making it easy for teams to work together and stay on the same page.
Figma also offers a commenting system, which makes it easy for team members to provide feedback on designs and collaborate on changes. Figma’s design tool is based on vector graphics, which allows users to create designs that can be scaled up or down without losing quality. The tool also offers a wide range of features, including the ability to create responsive layouts, animations, and interactive prototypes.
Figma’s business model is based on a freemium model, with the free ‘Starter’ plan being free for up to three projects. The company also offers paid plans, which provide additional features and functionality. Figma is also poised to generate revenue from Figjam, a whiteboarding tool that will be out of its free beta in 2022. Overall, Figma is a powerful and versatile design tool that is designed to help teams work together on design projects. Its real-time collaboration capabilities, intuitive user interface, and wide range of features make it a popular choice for designers and teams around the world.
How Figma Makes Money
Subscription plans for individuals and teams
Figma is a collaborative design tool that offers a freemium model for its core product. Its subscription model is designed to be flexible and scalable, with pricing plans that cater to both individuals and teams.
The basic plan, called “Starter,” is free for individuals and includes unlimited design files, up to three pages per file, and allows up to three editors to work on a project simultaneously.
For teams that require more features and functionality, Figma offers paid plans, including “Professional” and “Organization,” which provide features such as unlimited projects, version history, and team libraries. The professional plan starts at $12 per editor per month and includes unlimited files, unlimited pages, and additional features such as advanced prototyping, team libraries, and custom design systems.
For teams, Figma offers plans that start at $45 per month for up to 3 editors and increase in price based on the number of editors and the features included. Teams can also purchase “Figma Organization,” which provides additional features such as shared fonts, advanced admin controls, and user management tools.
Additionally, Figma offers a 30-day free trial for all of its paid plans, allowing users to test out the platform before committing to a subscription.
In addition to its core design tool, Figma also offers a whiteboarding tool called “Figjam.” Figjam was released in beta in early 2021 and is expected to generate revenue for Figma once it comes out of beta.
Fees from third-party plugin developers
Figma also generates revenue through plugin fees collected from third-party developers who create plugins for the Figma platform.
Figma Business Model Canvas
The Figma Business Model can be explained in the following business model canvas:
Figma Customer Segments
Figma customer segments consist of:
Figma Value Propositions
Figma’s value propositions for all its customer segments are:
- A cloud-based design and prototyping tool that enables real-time collaboration;
- A platform that is easy to use and accessible to all skill levels;
- A flexible pricing model that caters to both individuals and teams.
- A design tool that integrates with a variety of other software tools.
Figma channels consist of:
- Social media
- Referral program
- Direct sales
Figma Customer Relationships
Figma customer relationships consist of:
- Online community forums
- Customer support
- Collaboration and feedback tools within the platform
- Education and training resources
Figma Revenue Streams
Figma revenue streams consist of:
- Subscription plans for individuals and teams
- Whiteboarding tool
- Fees from third-party plugin developers
Figma Key Resources
Figma key resources consist of:
- Cloud-based platform
- Intellectual property (IP) and patents
- Talent and expertise of their team members
- Brand and reputation
Figma Key Activities
Figma key activities consist of:
- Developing and improving the platform’s features and functionality
- Marketing and advertising the platform to potential customers
- Providing customer support and education resources
- Developing partnerships and integrations with other software tools
Figma Key Partners
Figma key partners consist of:
- Third-party plugin developers
- Software integrators
- Cloud hosting providers
- Design agencies
Figma Cost Structure
Figma cost structure consists of:
- Employee salaries and benefits
- Cloud hosting and infrastructure costs
- Marketing and advertising expenses
- Research and development expenses
- Legal and administrative costs
Figma is a popular design tool used by many designers and businesses. However, it is not the only design tool in the market. Several other design tools compete with Figma. Here, there are some of Figma’s competitors:
- InVision: InVision is a popular design tool that designers and businesses widely use. It is a cloud-based design platform that allows users to create, prototype, and collaborate on designs. InVision offers a range of features, including design libraries, animation tools, and collaboration tools;
- Adobe XD: Adobe XD is another popular design tool that designers and businesses widely use. It is a vector-based design tool that allows users to create, prototype, and collaborate on designs. Adobe XD offers a range of features, including design libraries, animation tools, and collaboration tools;
- Sketch: Sketch is a popular design tool that designers and businesses widely use. It is a vector-based design tool that allows users to create, prototype, and collaborate on designs. Sketch offers a range of features, including design libraries, animation tools, and collaboration tools;
- Canva: Canva is a popular design tool that is widely used by businesses and individuals. It is a cloud-based design platform that allows users to create designs for social media, marketing, and other purposes. Canva offers a range of features, including design templates, a drag-and-drop interface, and collaboration tools.
Figma SWOT Analysis
Figma is a popular vector graphics editor and prototyping tool that has gained significant traction in recent years. By conducting a swot analysis, it is possible to gain a better understanding of Figma’s strengths, weaknesses, opportunities, and threats.
Figma has a number of key strengths that have helped it to become a leading player in the design software market. These strengths include:
- Collaboration: Figma is a collaborative design tool that allows multiple users to work on the same project simultaneously. This is a significant advantage over traditional design software, which often requires users to work on separate files and then merge their work together;
- Cloud-based: Figma is a cloud-based tool, which means that users can access their designs from anywhere with an internet connection. This is another advantage over traditional design software, which often requires users to be physically present on the same network;
- Easy to use: Figma is known for its intuitive interface and ease of use. This has helped to make it a popular choice among designers of all skill levels.
Despite its many strengths, Figma also has a number of weaknesses that could potentially hold it back. These weaknesses include:
- Offline access: Because Figma is a cloud-based tool, it requires an internet connection to function. This could be a problem for users who need to work on their designs while offline;
- Cost: While Figma offers a free plan, its paid plans can be relatively expensive compared to other design software options.
There are several opportunities that Figma could capitalize on in the future. These opportunities include:
- Expansion into new markets: Figma could potentially expand into new markets, such as video editing or animation software;
- Partnerships: Figma could form partnerships with other companies to integrate its software with other tools and platforms.
Finally, there are also several potential threats that Figma will need to navigate in order to maintain its position in the market. These threats include:
- Competition: Figma faces stiff competition from other design software options, such as Adobe Creative Suite and Sketch;
- Changing user needs: As the design industry evolves, user needs and preferences may change, which could make Figma’s current offering less appealing.
Figma has become a leader in the design industry with its innovative and collaborative approach to design. Its freemium business model has allowed it to attract a large user base, while its subscription plans and plugin fees have generated revenue.
The company’s focus on community-led growth has been a key factor in its success, as it has allowed Figma to build a loyal user base and create a network effect. By listening to user feedback and continuously improving its product, Figma has been able to stay ahead of the competition and maintain its position as a top design tool.
Looking forward, Figma’s expansion into whiteboarding with Figjam shows its commitment to meeting the evolving needs of its users. As the design industry continues to grow and evolve, Figma is well-positioned to continue its success and drive innovation in the space.