

20VC: Figma's IPO: The Full Breakdown | Index Returns $3.5BN on Two Deals | Why Melio's $2.5BN Acquisition is "Discouraging" | Asana's New CEO and the Great Founder Exodus | Oracle's $30BN AI Deal and What it Means for Incumbents
132 snips Jul 3, 2025
Dive into the fascinating world of startup valuations with insights on Figma's impressive IPO and Adobe's missed acquisition opportunity. Explore the reasons behind Melio’s surprising $2.5 billion exit, despite rapid growth. Discuss the rampant surge in AI investments and their potential implications for the market. Analyze the challenges of tech acquisition amidst a wave of CEO exits. Unpack the dynamics of venture capital, especially the balance between personal relationships and financial decisions in this shifting landscape.
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Figma’s Strong IPO Metrics
- Figma's IPO shows profitability with 40% free cash margins and 46% growth, exemplifying a "rule of 80" model.
- This reflects strong financial health and emphasizes quality over discount in valuations.
Challenges of Reserve Allocation
- Reserving capital in venture is complex, balancing investments in winners and maintaining reserves for weaker deals.
- Junior partners often want to keep companies alive longer due to incentives divergent from senior leadership.
Be Strategic With Reserve Investments
- Avoid making reserve investments in struggling companies unless they have a clear, executable plan to become cashflow positive.
- Limit additional money to small, finite amounts to support turnaround efforts without wasting time or resources.