NPLG 9.15.22: What Figma Got Right
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What Figma Got Right
This morning, Figma announced that they are being acquired by Adobe for ~$20B, the biggest acquisition of a private technology company ever announced. Figma is the poster child for PLG and community-led growth. There are so many things that Figma got right, but in celebration of this iconic acquisition, I wanted to highlight some of my favorite PLG best practices that Figma pioneered.
1. Community is Foundational: From early days, Figma CEO Dylan Field prioritized building a vibrant, digital community. I love this quote from him: “The first place is your home, the second place is work, and the third place hopefully is the community of interest – a global, online community of interest around design and creativity. Long-term that’s what we want to do with Figma.” Figma was one of the first companies to have a community page (www.figma.com/community) and was proud to highlight work of the community and democratize access to best design practices and powerful plugins, built by the community.
2. Make Learning Easy: Figma’s mission from day 1 was to build a collaborative design experience in the browser. The product is easy to jump in to and start using. Figma is approachable. Figma went a step further and invested in educational and learning content to expand anyone’s design capabilities. Figma is not only fun and intuitive, but is rich with design lessons and courses.
3. Go Beyond Designers: Designers were naturally the first to adopt the product, but they shared their work with other team members. Figma made it easy to review and collaborate on design work, especially if you weren’t a designer. Figma was inviting and welcoming to use, often as simple as clicking a URL link and exploring the design board. Thus, Figma was able to expand the design TAM (total addressable market) by pulling in marketing, sales, product, engineering and legal teams into the design experience. Before long, many of these non-design team members were launching their own Figma boards.
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PLG Tweet(s) of the Week:
Dylan Field @zoinkTHREAD: This morning we’re announcing that @Figma has entered into an agreement to be acquired by @Adobe ! More information here: https://t.co/eqJsSlkShq (1/9)
Recent PLG Financings (Private Companies):
Zeet, an all-in-one DevOps software designed to make code deployment an easy task, has raised $4.3M. The round was led by Sequoia Capital, with participation from Race Capital.
Hebbia, a startup developing AI-infused search tools, has raised $30M at a $136.1M valuation. The round was led by Index Ventures, with participation from Radical Ventures.
Arize AI, a startup developing a platform for machine learning operations, has raised $38M. The round was led by TCV, with participation from Battery Ventures and Foundation Capital.
Anyscale, an application software designed to simplify distributed computing, has raised $99M at a $2.04B valuation. The round was led by Addition and Intel Capital, with participation from Foundation Capital.
Mesh Payments, a financial management company, has raised $60M. The round was led by Alpha Wave, with participation from Tiger Global, TLV Partners, Entrée Capital and Meron Capital.
Cymulate, a company that helps cybersecurity teams test their networks, has raised $70M at a $500M valuation. The funding was led by One Peak, with Susquehanna Growth Equity, Vertex Ventures Israel, Vertex Growth and Dell Technologies Capital also participating.
Bitwarden, an open-source password manager for enterprises and consumers, has raised $100M. The round was led by PSG, with participation from Battery Ventures.
Gravitee, a startup building a tool for designing, securing, managing and deploying APIs, has raised $30M. The round was led by Riverside Acceleration Capital, with participation from Kreos Capital, AlbionVC and Oxx.
Recent PLG Performance (Public Companies):
Financial data as of previous business day market close.
Best-in-Class PLG Benchmarking:
15 Highest EV / NTM Multiples:
15 Biggest Stock Gainers (1 month):
Complete Notorious PLG Dataset (click to zoom):
Note: TTM = Trailing Twelve Months; NTM = Next Twelve Months. Rule of 40 = TTM Revenue Growth % + FCF Margin %. GM-Adjusted CAC Payback = Change in Quarterly Revenue / (Gross Margin % * Prior Quarter Sales & Marketing Expense) * 12. Recent IPOs will have temporary “N/A”s as Wall Street Research has to wait to initiate converge.