This week’s big news was Adobe buying Figma. Here’s my unsolicited thoughts on the main questions people have been asking.
50x Sales! Does this mean the tech sector is back?
A big startup acquisition certainly looks good, and I think overall, it’s a very positive indicator. Although, the deal being half stock and half cash might indicate that we have more downside coming in the stock market. As if Adobe thought their stock was undervalued, they would have paid all cash.
Does this mean Figma is dead?
No. Adobe’s model is a suite of services (Photoshop, Acrobat, etc.), and they have retained the brands and products of several acquisitions, e.g., Behance, Marketo. Over the next 12 months, you should expect to see more integrations with Adobe products and others become a lower priority.
Is now the right time to build a new kind of design tool?
Yes! Figma was founded in 2012, it’s practically ancient in the startup world, so there’s likely numerous ways to beat them now — just like they beat Adobe! But remember, a large sale is not a good reason to choose a market.
Let me know your thoughts in the comments.
