Here's how Figma's founders inspired an early investor

The recent public offering of Figma at the end of July marked a significant turnaround in the tech IPO landscape, which had been dormant for three years. Terrence Rohan, an early investor and the company's first board director, recognized Figma's potential long before its impressive market debut. Despite skepticism surrounding Figma's viability, including concerns about market size, fierce competition, and tight margins, Rohan believed in the vision of its co-founders, Dylan Field and Evan Wallace. "You could have easily crafted a case study outlining why Figma might fail," he admitted. However, he was captivated by the exceptional qualities of Field and Wallace, whom he first encountered during their seed pitch in 2013 while he was with Index Ventures. Notably, Index Ventures led Figma's $3.87 million seed funding and continued to support the company through various funding stages. Serving on Figma's board from 2013 to 2015, Rohan is no longer actively involved but still maintains a stake in the company. He celebrated Figma's IPO at the New York Stock Exchange and keeps in touch with CEO Dylan Field. Figma revolutionizes digital design by enabling users to collaborate on creative projects such as websites, apps, and logos. When it launched its first tool in 2015, the concept of real-time, collaborative online design was met with skepticism, as noted by Field in a 2020 blog post. Despite the initial backlash, Figma grew rapidly, amassing over 4 million users by 2022. This growth caught the attention of Adobe, which attempted to acquire Figma for $20 billion; however, regulatory hurdles forced the deal to collapse. The company's recent IPO was a resounding success, with offerings more than 40 times oversubscribed and stock prices tripling on the first trading day. Reflecting on his investment journey, Rohan emphasizes the importance of authenticity and self-awareness in founders. These traits are fundamental in his assessment of potential investments. "Founders who understand their strengths and the needs of their projects stand out," he commented. Recently, Figma has launched a series of innovative features, enhancing its offerings for ideation, prototyping, and website design. Rohan's experience with Figma has bolstered his confidence in seed-stage investments. Currently, he serves as managing director at the Otherwise Fund, where he has made notable investments in companies like Hugging Face, Notion, Robinhood, and Vanta.