Logo

How Figma got so popular — and broke out of Adobe's shadow

The popular design tool is no longer playing second fiddle to the company that once tried to acquire it

In less than a decade, Figma has gone from a scrappy Silicon Valley startup to a critical tool shaping how digital products are realized. Designed for browser-based collaboration, Figma didn’t just compete with Adobe’s desktop software — it upended the category.

In 2022, Adobe made a bold move to acquire Figma for $20 billion, signaling just how seriously it viewed its rival. But after months of regulatory review across the United States and Europe, the deal unraveled. The attempted acquisition brought Figma under a global spotlight, raising questions not only about the future of design software but also about who controls the infrastructure of modern collaboration.

Fresh off an IPO, Figma is positioned not as Adobe’s understudy but as a rising force shaping how teams design, build, and iterate across the cloud. Let’s look at how Figma carved its niche, what makes it stand out, and what’s next for the collaborative design powerhouse.

2 / 6

What Figma does

Mariia Shalabaieva via Unsplash

Figma solves a very modern problem: how to bring design and prototyping into the browser without sacrificing power, precision, or teamwork. Traditional design software has often involved desktop installs and siloed workflows. Figma challenged that by offering essential creative tools in the cloud.

At its core, Figma is a browser-based interface design and prototyping platform. But it has expanded into a wider suite of tools that support design thinking, whiteboarding, site building, and AI-assisted workflows.

Its key tools include:

  • Vector editing: A vector-based design tool that mimics the feel of native apps, but runs entirely in the browser. 
  • Live collaboration: Multiple people can work on the same file in real time, much the same as in Google Docs.
  • Prototyping: Interactive design flows can be previewed and tested without switching tools.
  • FigJam whiteboard: A digital whiteboard supports brainstorming, wireframing, and non-design collaboration.
  • Figma Sites website builder: Recently launched in beta, Figma allows users to create and publish simple websites directly from designs.
  • Make and Buzz: AI-powered tools generate design elements, content, and data visualizations. 

Unlike many traditional design tools, Figma requires no downloads, and it works across platforms — macOS, Windows, ChromeOS, and Linux. This has made it especially popular with hybrid and remote teams.

3 / 6

The rise of Figma and its key differentiators

Figma’s emergence put pressure on Adobe’s Creative Cloud, especially Adobe XD, which was once seen as Adobe’s answer to UI/UX-focused design tools. But where XD remained tethered to desktop environments, Figma embraced a web-first mentality from day one. Adobe eventually discontinued further development of XD, underscoring how Figma had captured the market's attention.

What makes Figma different isn’t just the fact that it runs in a browser. It's how well it understands the needs of modern teams.

Its standout feature — live collaboration — allows teams to work together in real time, edit side by side, and leave comments inline. This isn't just convenient. It changes the rhythm of design work.

In the past, designers would email files back and forth or upload to cloud folders, waiting for feedback. Figma eliminates some of that friction.

It also opens the design process to non-designers. Product managers, engineers, and marketers can leave comments, tweak copy, or review flows directly. This accessibility brings design into earlier stages of product development.

Since Adobe’s acquisition attempt fell through, Figma has expanded into AI tools. Its launch of Make and Buzz — AI tools that generate design assets, auto-layouts, and even copy — suggests a future where automation enhances human creativity without replacing it.

4 / 6

Adobe’s proposed acquisition

The attempted acquisition by Adobe marked a turning point for Figma, even though it never closed.

In September 2022, Adobe announced plans to acquire Figma, aiming to merge the platform into its Creative Cloud ecosystem. Almost immediately, critics voiced concerns about reduced competition and innovation.

The deal faced heavy scrutiny from regulators in the United States, UK, and EU. By the end of 2023, after more than a year of review, the companies announced they were walking away. Adobe paid a $1 billion breakup fee.

The failed merger had ripple effects across the design world. Adobe was left to rethink its strategy in UI/UX, while Figma maintained independence and gained a financial windfall. The breakup fee helped fund R&D, product expansion, and hiring — accelerating Figma’s roadmap beyond what most startups could manage on their own.

5 / 6

Why Figma gained traction

Today’s teams are more distributed, more cross-functional, and more reliant on real-time collaboration. Figma understands that better than anyone. Its tools are built for the browser and designed to support group workflows from the ground up.

The company also benefits from strong grassroots adoption. Designers praise it for its ease of use, speed, and sharing capabilities. Schools teach it as a first tool. Startups adopt it because of its free tier and browser accessibility.

After the breakup with Adobe, Figma invested heavily in its platform. FigJam became more competitive with tools like Miro — an online collaborative whiteboard platform that enables teams to brainstorm, plan, and work visually together in real time. The new Sites product moved it into no-code web publishing. AI integrations positioned it at the forefront of creative automation.

6 / 6

Figma’s competitive dynamics

Looking ahead, Figma faces both opportunities and challenges. Its core strategy is to expand beyond design into collaborative creation. This includes AI-powered features, website publishing, developer tools, and enterprise-grade security.

At the same time, competition is intensifying. Canva is making moves into UI/UX design. Notion and other productivity tools are adding visual editing features. Adobe, despite retiring XD, remains a force in creative software and could reposition itself.

Figma also faces broader risks. Regulatory scrutiny could return if it expands aggressively. AI development comes with infrastructure costs and ethical challenges. And as more companies adopt hybrid or AI-assisted workflows, the expectations for speed, scale, and innovation keep rising.