$20.00 billion A historic victory for startup investors in an otherwise terrible year is the Figma deal.

By paying 2021 rates, Adobe. It’s 2022.

Wall Street is against it. Thrilled is Silicon Valley.

Adobe’s $20 billion purchase of Figma on Thursday is what some could call a narrative violation in a year that has seen exactly zero high-profile tech IPOs and far more news stories about major layoffs than big fundraising rounds. According to a person familiar with the situation who wanted to remain anonymous because the information is private, there was no other bidder out there driving up the price.

Over the past few years, Adobe has been increasingly troubled by the cloud-based software built by Figma. 
It has been catching on like wildfire among designers at businesses large and small since it is less expensive (there is even free tier), simpler to use, collaborative, and cutting edge. 
For the second year in row, annualised recurring revenue is expected to more than double and approach $400 million in 2022
Lo Toney, founding managing partner of Plexo Capital, which invests in start-ups and venture funds, stated on Thursday’s “TechCheck” on CNBC that “this was serious challenge to Adobe.” 
This was very much defensive action with an eye on the current trend where design counts.
The three cloud equities with the greatest revenue multiples, Snowflake, Atlassian, and Cloudflare, have fallen 41%, 33%, and 51%, respectively, this year.
Adobe shares experienced their worst day since 2010 on Thursday after the announcement, falling more than 17%. 
The transaction isn’t anticipated to boost adjusted profitability until “the end of year three,” the business stated in slide presentation.

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