An investor group including Coatue Management, Alkeon Capital Management, and General Catalyst Partners has invested in Figma Inc., valuing the design startup at $12.5 billion. This investment occurs as Figma is generating annual recurring revenue exceeding $700 million, with projections to surpass $1 billion by next year. This revenue has seen significant growth from about $400 million in late 2022.

Led by CEO Dylan Field, Figma introduced new artificial intelligence features and a visual storytelling tool named Figma Slides in June. The company is viewed as a strong candidate for an eventual IPO, following the collapse of a planned merger with Adobe Inc. late last year. The recent transaction was a secondary share sale, involving current and former employees as well as other equity holders.

The secondary share sale, also known as a tender offer, has been completed. While Figma declined to disclose specific investor identities and revenue details, additional participants in the investment include SurgoCap Partners, Atlassian Corp., Fidelity Management & Research Co., Franklin Templeton’s Franklin Venture Partners, Iconiq, Sequoia Capital, Thrive Capital, Greenoaks Capital Partners, Durable Capital Partners, Andreessen Horowitz, and Kleiner Perkins. Apple Inc. executive Eddy Cue, Goanna Capital, and XN also invested.