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Business Operations Business Models

How Does Figma Make Money (Business and Revenue Model)

The Figma business model

Figma logo
Here’s what you should know:
  • What is Figma, and how does Figma work?
  • How does Figma make money?
  • Subscription Revenue (Figma Professional)
  • Figma funding, net worth, and valuation
  • Figma profit and revenue
  • What is the Figma business and revenue model?
  • Figma subsidiaries, acquisitions, and exits

How does Figma make money and how is it free to use? Well, here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the Figma business and revenue model, how much Figma makes per year, and how Figma works.

What is Figma, and how does Figma work?

Figma is a web design tool used by designers and developers to brainstorm, design, and build web apps in a collaborative way.

Founded in 2012 by Dylan Field and Evan Wallace, Figma went on to later get acquired by Adobe on September 15, 2022, for $20 billion.

Figma now has more than 4 million users across 235 countries and territories using its service.

So, how does Figma work? To use Figma, you can simply visit their website and sign up for an account. Once an account is created, you can begin brainstorming, designing, and building web apps – with the option to upgrade your account.

Some of Figma’s competitors include Sketch, Adobe XD, and other web design tools.

Figma App in Apple App Store | Figma Business Model | How Does Figma Make Money | How Does Figma Work
Source: Apple App Store | Figma

How does Figma make money?

According to Figma, Figma now has more than 4 million users using its web design tools. So how does Figma make money off of all these users?

Below is a breakdown of how much money Figma makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how Figma makes money in 2022

Figma has a revenue model that makes money in just one (1) way; through subscription revenue (Figma Professional).

#1. Subscription Revenue (Figma Professional)

Figma makes all of its money from the two (2) subscription services they offer to its users.

Those two (2) services are Figma for design + prototyping and FigJam for whiteboarding.

Though Figma does offer a free tier for each of these products, they also have three (3) paid subscription tiers for both – they are; Professional, Organization, and Enterprise.

All of these offer additional perks that the free version does not offer such as additional teams, use of private plugins and widgets, webhooks, dedicated Figma support, and more – depending on the plan and product chosen. You can see the pricing below or check it out in full here.

How much does Figma cost? (Figma subscription pricing)

  • FigJam for whiteboarding: $0 to $5 per editor, per month billed annually
  • Figma for design and prototyping: $0 to $75 per editor, per month billed annually
Figma subscription pricing | Figma Business Model | How Does Figma Make Money | How Does Figma Work
Source: Figma

Note: Of Figma’s 4+ million users, it’s unclear how many of those are paying users.

Figma funding, net worth, and valuation

According to Figma’s Crunchbase profile, Figma has raised $332.9 million over 6 rounds.

On September 15, 2022, Figma was acquired by Adobe for $20 billion.

Figma profit and revenue

Figma has not released any official reports in regard to company earnings. But sources say Figma is projected to reach $400 million in revenue in 2022.

Note: Because Adobe Inc., the parent company of Figma, is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Adobe’s publicly released financial reports, including annual reports, through Adobe’s investor section on their website.

What is the Figma business and revenue model?

Figma makes money through a few revenue models that they combine within their company, they are:

  • Freemium business model
  • Subscription based business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

Figma subsidiaries, acquisitions, and exits

To date, Figma has made a total of 1 acquisition.