From private to public: Three lessons from Circle and Figma IPOs
Figma and Circle’s IPOs captivated the market
On July 31, 2025, Figma, a leading collaborative design software company, officially went public on the New York Stock Exchange. Its share price surged by 250% on the first day, making it one of the most talked-about tech IPOs in recent memory (Figure 1). Just weeks earlier, Circle, the issuer of USDC stablecoin, had also debuted on the public market. Its stock jumped 168% on the first trading day and briefly climbed to $299 within a month (Figure 2), capturing the attention of both crypto and technology investors.
For both companies, going public was not the beginning. By the time most investors took notice, much of the growth had already occurred. IPOs often represent the moment when early investors exit, and public market participants face higher valuations with limited upside and increased risk. This raises an important question: Is there a way for individual investors to get involved earlier in a company’s growth journey?
The paths taken by Circle and Figma offer three important lessons for those looking to participate before companies go public.
Lesson 1: The IPO is only the public chapter of the story. Most value is created earlier.
Before reaching the IPO stage, companies typically undergo several rounds of private funding: from seed to Series A, B, and C rounds, and often a pre-IPO round. Taking Figma as an example, in its final private funding round in 2021, the company was valued at $10 billion, with investments led by venture capital firms and qualified investors.1 Circle also completed multiple rounds before listing, with participants including BlackRock and Fidelity.2
These stages are often marked by limited disclosure and non-public trading, but they are where companies make their most significant leaps in valuation and market positioning. According to research by Manhattan Venture Partners, investors who participated in late-stage pre-IPO rounds such as Series E to G achieved average annualised returns exceeding 80% within six months. In contrast, those who entered via the IPO or in the secondary market shortly after averaged annualized returns of around 39.8% (Figure 3).3
This suggests that much of the value creation happens well before a company becomes publicly accessible. The IPO is often a liquidity event for earlier participants.
Lesson 2: Access to pre-IPO opportunities is increasing for qualified investors.
Many investors assume that investing in companies before they go public is reserved for venture capital firms, institutional players, or industry insiders. In recent years, regulated platforms and innovative private investment structures have broadened access to private deals. As a result, qualified investors today have more options to participate in a company’s earlier stages through compliant, professionally managed private market offerings.4
Investors can gain exposure to pre-IPO opportunities through structured vehicles, such as special purpose vehicles (SPVs)
These opportunities are not risk-free. Private markets are still marked by less frequent disclosures, long holding periods, and limited visibility into valuation changes. Yet, for long-term investors with capital to allocate and a willingness to understand the structure, pre-IPO access is no longer out of reach.
Lesson 3: From knowledge to action, participating in early-stage growth requires preparation
The explosive growth seen after Circle and Figma went public may leave many investors thinking, “If only I had known earlier.” However, participating in the private market is not about luck. It’s about building the right knowledge, developing analytical judgment, and understanding how to access opportunities effectively.
Private market investments differ fundamentally from public markets. Unlike public markets, private markets operate without standardised disclosures or clear pricing, requiring investors to develop a deeper understanding of how value is built over time. Investors need to assess a company’s business model, leadership quality, scalability, and potential exit routes. That is, skills that take time to develop.
This is where professional institutions and platforms play a key role. Institutions such as private equity firms, venture capital firms, and asset managers design and manage customized high-quality deals with rigorous due diligence, while platforms like ADDX can help investors participate in these opportunities.
For individuals, building the knowledge and confidence to engage with private markets is a gradual process. Understanding risk, liquidity timelines, and investment fit all require education, experience, and platform support.
Conclusion
The case of Circle and Figma suggests that much of a company’s value may develop before its IPO. While some qualified investors might have opportunities to access pre-IPO stages through professionally managed private market structures, such investments often involve higher risks and longer holding periods.
Successful participation typically depends on a solid understanding of the private market environment, careful evaluation of risks, and appropriate use of trusted platforms. For investors willing to prepare thoughtfully and consider the complexities involved, early-stage opportunities could offer potential benefits as part of a diversified investment approach.
References
1 https://finance.yahoo.com/news/figma-33-old-cofounder-former-181502284.html
2 https://www.circle.com/pressroom/circle-announces-400m-funding-round
3 https://www.scribd.com/document/701270560/Post-IPO-Returns-Report-Final-1-1
4 https://www.investopedia.com/terms/a/accreditedinvestor.asp
5https://www.bairdwealth.com/globalassets/pdfs/help/investing-in-private-equity-funds.pdf
6 https://www.ey.com/en_us/insights/private-equity/pulse
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