Hello, Idris here!. This week I want to share a summarised version of the product lessons we can learn from Figma
You can find the full case study here
Figma, conceived by Dylan, stands out as a collaborative cloud-based web application tailored for designing user interfaces. It made waves when it announced its $20B merger with Adobe in September 2022. However, this union was short-lived, lasting only 15 months, as regulatory concerns in the EU and the United Kingdom prompted its abandonment.
Here are some key takeaways that can enhance your product development journey...
Software is eating the world
You heard it correctly: software is truly revolutionising our world. I first encountered this concept from Gary Tan of YC, and it still astonishes me. Witnessing a small startup and its tool, created just 5-6 years ago from the ground up, surpass established leaders like InVision and Sketch, and even challenge industry behemoths like Adobe, is remarkable.
Revenue matters a lot
In the article, Dylan revealed that Figma had amassed a staggering $600 million in revenue, along with an additional $1 billion windfall from the fallout with Adobe – an astonishing sum indeed!
. Figma's billing strategy has become quite intense lately; even users on the free plan find themselves nudged towards upgrading. Initially, they adopted a strategy of offering low prices to attract a large user base and gather feedback.
It’s okay to start with small pricing
From the outset, pricing served as a pivotal differentiator for Figma, setting it apart from competing tools and establishing a foundation of trust. Their affordability from the beginning fostered a strong bond with the community and solidified their reputation. By offering accessible pricing, Figma effectively lowered the barrier to entry for aspiring and novice designers.
Be innovative and conquer
A standout feature that set Figma apart was its cloud collaboration functionality accessible directly from the browser. This meant you could access Figma from anywhere in the world without relying on your personal laptop, which was a game-changer for me. Unlike Adobe, Sketch, and InVision, who struggled to achieve this for a considerable time. This capability served as a crucial differentiator, emphasising the importance of identifying and leveraging unique strengths when building a product.
M&A deals all the way
With a substantial reserve of funds, Figma has been strategically acquiring products to enhance their workflows and processes, aiming to complete the value chain of software development from gaining buy-in to shipping and measuring. Their implementation of AI into their product began after acquiring Diagram, a small company founded by Jordan Singer, which utilised GPT-3 to generate design ideas with minimal input.
Communication is key always
You need to always communicate with your team and make them aligned about what’s happening always, Dylan Field prioritised transparency with figma employees, stakeholders, and the design community. By keeping lines of communication open and honest, Figma fostered trust and unity, strengthening its position in the market.
Learning from Setbacks
Field viewed the failed sale of the fallout as a valuable learning experience. He emphasized the importance of resilience in the face of adversity and the need to embrace failure as a catalyst for growth. By analysing the reasons behind the setback and learning from their mistakes, He characterised this as keeping your foot on the gas always at any point in time.
The in-depth version of the product lessons was posted here
I also try to feature indie tips and exciting product stuff
Let me know what you learnt from this
You can find the full case study here
Figma, conceived by Dylan, stands out as a collaborative cloud-based web application tailored for designing user interfaces. It made waves when it announced its $20B merger with Adobe in September 2022. However, this union was short-lived, lasting only 15 months, as regulatory concerns in the EU and the United Kingdom prompted its abandonment.
Here are some key takeaways that can enhance your product development journey...
Software is eating the world
You heard it correctly: software is truly revolutionising our world. I first encountered this concept from Gary Tan of YC, and it still astonishes me. Witnessing a small startup and its tool, created just 5-6 years ago from the ground up, surpass established leaders like InVision and Sketch, and even challenge industry behemoths like Adobe, is remarkable.
Revenue matters a lot
In the article, Dylan revealed that Figma had amassed a staggering $600 million in revenue, along with an additional $1 billion windfall from the fallout with Adobe – an astonishing sum indeed!
. Figma's billing strategy has become quite intense lately; even users on the free plan find themselves nudged towards upgrading. Initially, they adopted a strategy of offering low prices to attract a large user base and gather feedback.It’s okay to start with small pricing
From the outset, pricing served as a pivotal differentiator for Figma, setting it apart from competing tools and establishing a foundation of trust. Their affordability from the beginning fostered a strong bond with the community and solidified their reputation. By offering accessible pricing, Figma effectively lowered the barrier to entry for aspiring and novice designers.
Be innovative and conquer
A standout feature that set Figma apart was its cloud collaboration functionality accessible directly from the browser. This meant you could access Figma from anywhere in the world without relying on your personal laptop, which was a game-changer for me. Unlike Adobe, Sketch, and InVision, who struggled to achieve this for a considerable time. This capability served as a crucial differentiator, emphasising the importance of identifying and leveraging unique strengths when building a product.
M&A deals all the way
With a substantial reserve of funds, Figma has been strategically acquiring products to enhance their workflows and processes, aiming to complete the value chain of software development from gaining buy-in to shipping and measuring. Their implementation of AI into their product began after acquiring Diagram, a small company founded by Jordan Singer, which utilised GPT-3 to generate design ideas with minimal input.
Communication is key always
You need to always communicate with your team and make them aligned about what’s happening always, Dylan Field prioritised transparency with figma employees, stakeholders, and the design community. By keeping lines of communication open and honest, Figma fostered trust and unity, strengthening its position in the market.
Learning from Setbacks
Field viewed the failed sale of the fallout as a valuable learning experience. He emphasized the importance of resilience in the face of adversity and the need to embrace failure as a catalyst for growth. By analysing the reasons behind the setback and learning from their mistakes, He characterised this as keeping your foot on the gas always at any point in time.
The in-depth version of the product lessons was posted here
I also try to feature indie tips and exciting product stuff
Let me know what you learnt from this