A notable figure is applauding Figma’s triumphant IPO: Lina Khan, the ex-chair of the Federal Trade Commission.
In a Friday post on X, Khan linked to an article discussing Figma’s remarkable trading debut and stated the IPO is “a great reminder that letting startups grow into independently successful businesses, rather than be bought up by existing giants, can generate enormous value.”
Khan was referencing a $20 billion acquisition deal for Adobe to buy Figma that fell apart in 2023. Adobe mentioned a lack of a “clear path” to approval from regulatory bodies in Europe, and the deal also faced scrutiny in the U.S. over concerns it could hinder Figma’s competition with Adobe.
As FTC chair, Khan challenged Big Tech on startup acquisitions, leading companies to try to bypass scrutiny with “reverse acqui-hires,” where they hired key team members and licensed technology instead of outright acquisitions. This practice appears to continue even after Khan’s departure from the FTC.
Despite criticism from the tech industry, she defended her stance, claiming only a small percentage of deals were thoroughly scrutinized and arguing founders would benefit from having “six or seven or eight potential suitors” instead of just “one or two.”
Although Khan, appointed by President Joe Biden, resigned at the beginning of the second Trump administration, her Friday comments portray the Figma IPO as validation of her approach, describing it as “a win for employees, investors, innovation, and the public.”
However, Khan’s detractors may view Figma’s success as occurring despite regulatory hurdles, not because of them. Wedbush Security analyst Dan Ives told Business Insider, “Figma is a massive success, but it’s because of the company’s innovative growth and not due to the FTC and Kahn.”