Hi, it’s Alexandra Sternlicht filling in for Allie today. Figma’s sensational IPO last week resurrected longstanding debates about IPO pricing and first day pops—an unsurprising reaction to the newly listed stock’s 333% surge in its first days of trading. As investors dissect the offering (and as Figma’s stock settles back a bit, falling 27% on Monday), an equally important set of questions are in the air: Will Figma’s debut entice other startups to jump into the fray, bringing an end to the tech industry’s IPO drought? And if so, who’s next?
“Having positive IPOs is a good signal for everybody,” says Kirsten Green, founder and managing partner at Forerunner Ventures, whose portfolio company Chime recently went public and experienced a 37% pop in stock price on its first day of trading. (Forerunner also has investments in public company Hims & Hers and late stage private companies including Oura.)
