Former FTC Chair Lina Khan Delightfully Surprised by Figma’s Successful IPO

In a remarkable moment in the tech world, former Federal Trade Commission (FTC) Chair Lina Khan celebrated Figma’s successful initial public offering (IPO). On Friday, she shared a link to a report on Figma’s stellar first-day performance via X (formerly Twitter), commenting, “This is a major reminder that allowing startups to grow independently — rather than being sold to tech giants — opens the path to enormous value creation.”

Khan’s remarks come against the backdrop of the canceled 2023 Adobe-Figma acquisition deal. Adobe had sought to buy Figma for $20 billion, but the deal was blocked by the European Commission and the UK’s competition authority. The FTC, under Khan’s leadership, also opposed the deal in the US, fearing that Figma would no longer remain a competitor to Adobe.

Khan’s FTC was known for strict scrutiny of big tech’s startup acquisitions. Many companies bypassed outright acquisitions by employing “reverse acqui-hire” tactics, taking the startup’s key team and technology without fully acquiring them.

Her stance drew criticism within the tech sector, but she maintained that only a small number of deals went for “second look” review and argued that entrepreneurs ultimately benefit in a world with “six, seven, or eight potential buyers, not just one or two.”

Although she left the FTC following a change in US administration, Khan views Figma’s IPO success as a “win” validating her approach. She called it “a victory for workers, investors, innovation, and the public interest.”

However, not all credit Khan for Figma’s success. Wedbush Securities analyst Dan Ives said, “Figma’s huge success is not due to the FTC or Lina Khan, but rather the company’s innovation and consistent growth.”

Meanwhile, the 2025 TechCrunch Disrupt conference will feature big names like Netflix, ElevenLabs, Wave, and Sequoia Capital. This 20th annual event will bring top tech thinkers to share insights and guidance on startup growth.