Everything by Adobe could be much better if they weren't slumlords of software.
The person that the Figma org will report it just recently was with Greylock investing in Figma? Even if he has no money in it himself, it smells like taking care of family and friends. They'd remember his largesse and return the favor somehow later.
> Who is David Wadhwani, the person Figma is going to report to? (...) A little further research shows he joined Adobe in June 2021, just over a year ago. His last position prior was Venture Partner at venture capital firm Greylock. (...) Greylock invested in Figma in Series A, B, C, D, and E! Figma Series A’s price was $0.2 per share; it 200x’ed at the acquisition deal.
Even if he didn't personally invest in Figma, this doesn't look good at all.
Regarding the justifications for Figma's price:
> most startups cut their valuation by a lot in 2022
Most startups are not used by every single other startup, whereas I would be very surprised if any startup doesn't use Figma for UI design. I've never used Canva and never heard a company using it. The only time I heard of Canva is to create a nice looking CV. Comparing outliers to the average/most isn't very helpful.
> Another way to peek at a startup’s valuation is by revenue and growth multiplier.
That is clearly not the only factor in valuation. It also depends on Figma's cash, founders desperation (very low, especially to sell out to Adobe), acquirers desperation (very high), how unique is Figma (Sketch, Adobe XD and Canva are way worse), and loads more factors.
I would guess the real reason the Adobe price tanked was because it was a huge admission of defeat. Previously, you can't see how bad Adobe XD has performed, and now you know it's so low it doesn't matter. They can't build something people want. Nobody wants to use Adobe XD, even when IIRC, it was free at one point.
I simply believe Apple/Microsoft were circling Figma for an acquisition. That would be serious competition for Adobe and I imagine they got scared and threw the kitchen sink at Figma.
If you're Apple or Microsoft PM. Please make internal noise to purchase a Figma competitor like Sketch and give Adobe/Figma a run for it money. Adobe clearly doesn't like competition.
I think some separation time from his project will help him understand that the market did not agree with him.
Adobe is not looking to replace XD. They are looking to kill Figma.
Adobe's financial performance has been pretty outstanding.
In 2015, their net income was 630 million dollars with 13,893 employees.
By 2019, through steady growth they have grown their income to 2,951 million dollars with 22,634 employees.
In other words, while in 2015 an employee produced 45347 dollars but in 2019 the same person produced 130739 dollars.
I would be slow to presume they do not know what they are doing.
Does anyone even know when Adobe last had a net loss quarter?
This rings so true..
..even with Adobe keeping Figma as independent as it can be, it will develop and grow at a much slower pace since there will be no venture capital funds pouring in, and Adobe’s resources drained to pay off the acquisition cost. The only winner is Figma investors. This acquisition is a lose-lose-lose situation for Adobe, Figma, and the design community.
"Adobe XD supports multi-player mode for three years now" – this is maybe true for some small batch of alpha version users. The designer at my last startup insisted on using XD and it was a huge pain because you couldn't work in parallel – the first person opening a file was locking it down for others to change.
absolute garbage. deleteing figma. will not use going forward (adobe is run by hedgies...
WOZ way is a reminder of that fact
This deal feels very bizarre to me, albeit for completely different reasons. I frequently, even within one project with multiple designers will get figma, sketch, xd, photoshop and illustrator designs and it makes almost no difference for me. Perhaps I’m an anomaly, but when a creative asks what format to do something in I always tell them whatever they are most efficient and comfortable in. And when I do designs, out of years of Adobe dominance, I reach for xd, but feel comfortable in any of the other ones.