In a recent video analysis titled "Figma's $3 Billion IPO Mistake: The Pricing Disaster Explained" from the channel "AI, SaaS & Agentic Pricing with Monetizely," pricing expert Akil breaks down what he describes as "one of the biggest pricing mistakes in Wall Street history." The video examines how Figma, despite celebrating a seemingly successful IPO, actually left billions of dollars on the table through catastrophic underpricing—and offers valuable pricing strategy lessons for SaaS executives.
The Pricing Disaster Behind Figma's IPO
While many celebrated Figma's successful public offering, the numbers tell a concerning story about value left uncaptured. As Akil explains in his analysis, "Figma priced their IPO at $33 per share, giving them a $19.3 billion valuation. The stock immediately surged 255% to 115.50, tripling their market cap to 67 billion."
This dramatic price jump signals a severe miscalculation in pricing strategy. According to the analysis, "That means they left over 3 billion on the table with Figma alone missing out over a billion in proceeds." This isn't just a minor misstep—it represents a substantial loss of capital that could have been raised for the company itself.
Market Signals Ignored
The most telling indicator of the pricing failure was the overwhelming market demand that went unaddressed. As highlighted in the video, "The IPO was 40x subscribed, which means demand was screaming that 33 was way too low."
Such dramatic oversubscription should have been a clear signal to adjust pricing upward. When demand so drastically exceeds supply, it indicates a significant gap between perceived value and asking price—a gap that Figma failed to close.
Not Incompetence, But Design
One of the most revealing insights from the analysis is that this underpricing wasn't accidental. As Akil points out, "This wasn't incompetent. It was quite intentional. Current IPO system is designed to create these pops that make headlines and enrich connected investors."
This perspective challenges the traditional narrative that IPO "pops" are signs of success. Instead, they often indicate a wealth transfer from the company to institutional investors who get access to shares at the initial offering price before they surge in public trading.
The consequences for Figma were substantial: "Figma could have raised 1.4 billion instead of 400 billion if they had priced correctly. That's over a billion dollars in loss proceeds."
Alternatives to Traditional IPOs
The video suggests that companies should consider alternatives to the traditional IPO process that often leads to this value leakage. "This is why smart companies like Spotify choose direct listings. They cut out the middleman who profits from the underpricing."
Direct listings allow companies to go public without issuing new shares and without the traditional underwriting process, potentially avoiding the underpricing issue that plagued Figma.
The SaaS Pricing Lesson
Beyond the specifics of Figma's IPO, there's a broader lesson for SaaS companies about pricing psychology and strategy. As Akil notes, "When you are drastically underpriced, you are not being customer friendly. You are transferring value to people who don't really deserve it."
This counters the common misconception that lower prices are always better for customers. Instead, proper pricing is about value alignment—ensuring that the price reflects the value delivered.
For SaaS executives, the takeaway is clear: "The lesson for your SaaS, when demand massively exceeds supply, do not feel guilty about raising prices. Market signals exist for a reason. If customers are beating down your door and you have a weight list, you are probably underpriced."
Looking Beyond Headlines
While headlines celebrated Figma's IPO as a success, Akil's analysis reveals a more complex reality about pricing strategy and value capture. "Try to capture the value you create, not to make institutional investors rich," he advises.
This perspective shift is crucial for SaaS leaders who may face similar pricing decisions, albeit on a different scale. Proper pricing isn't just about revenue—it's about recognizing and capturing the full value your product creates.
Conclusion
Figma's IPO represents a case study in pricing psychology that extends far beyond the public offering process. For SaaS executives, the lesson is clear: pay attention to market signals about your pricing. When demand significantly exceeds supply, it's not just an opportunity to grow—it's a clear indication that your current pricing may be leaving substantial value uncaptured.
As Bill Gurley is quoted in the video, this is fundamentally "a refusal to match supply and demand." Whether you're taking your company public or simply setting product pricing, ignoring these market signals can lead to leaving millions—or even billions—on the table.