A surprising figure is celebrating Figma’s successful IPO: Lina Khan, former chair of the Federal Trade Commission. In a Friday afternoon post, Khan referenced an article about Figma’s impressive first day of trading and argued that the IPO serves as a great reminder that allowing startups to grow into independently successful businesses, rather than being acquired by industry giants, can generate enormous value.
Khan’s comments alluded to a failed $20 billion deal in which Adobe attempted to acquire Figma back in 2023. Adobe cited regulatory hurdles from the European Commission and the U.K. Competition and Markets Authority as reasons for abandoning the deal. The acquisition also faced scrutiny in the United States over concerns that it would stifle Figma’s ability to compete with Adobe.
At the time, Khan was leading the FTC’s efforts to challenge Big Tech, particularly regarding startup acquisitions. Her aggressive stance pushed some companies to adopt alternative strategies, such as “reverse acqui-hires,” where they hired key team members and licensed technology instead of outright acquisitions. This practice appears to have persisted even after Khan’s departure from the FTC.
While her approach drew criticism from parts of the tech industry, Khan defended it by stating that only a small percentage of deals received regulatory scrutiny. She argued that founders benefit from having multiple potential suitors rather than just one or two dominant players.
Khan, who was appointed by President Joe Biden, resigned at the start of the second Trump administration. However, her recent remarks framed Figma’s IPO as a validation of her regulatory philosophy, calling it a win for employees, investors, innovation, and the public.
Critics, however, view Figma’s success as a result of its own innovative growth rather than regulatory intervention. For instance, Wedbush Securities analyst Dan Ives stated that Figma’s achievements stem from the company’s execution, not the FTC’s actions.
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