Figma and Bullish IPOs Highlight the Value of Secondary Markets v

August 2025

By Greg Martin, Managing Director at Rainmaker Securities

Figma’s long-awaited IPO delivered one of the most dramatic debuts we’ve seen in recent years. Priced at $33 per share, the stock opened at $85 and closed on day one at $115.50 - a staggering 250% gain that sent its market cap soaring from $19 billion to nearly $70 billion.

Similarly, Bullish’s IPO, priced at $37 per share, above the marketed range of $32-$33. The company raised about $1.1 billion, valuing it around $5.4 billion at the time of offering. When trading began, the stock opened at $90, roughly a 143% first-day gain. This massive first-day pop underscores the same issue of underpricing due to limited pre-IPO discovery.

While such momentum makes headlines, it also highlights a critical challenge for future IPO-bound companies: the opportunity cost of under pricing. Estimates suggest that both Figma and Bullish may have left billions in proceeds unrealized, capital that could have supported R&D, strategic acquisitions, or long-term value creation.

The core issue wasn’t demand or market fit, it was a deficiency in accurate price discovery. Specifically, the absence of an active secondary market ahead of IPO meant that the companies, their CEOs, and early stakeholders entered the public market without reliable, data-led benchmarks for investor demand and valuation. The results are IPOs priced too conservatively.

A measured first-day “pop” of 10-15% is widely considered healthy. It signals positive reception, rewards early investors, and sets a foundation for trading. But when a stock more than triples upon debut, it calls into question the effectiveness of the pricing process and the extent to which capital optimization might have been compromised.

Why Secondary Markets Matter

This is where the value of a well-functioning private secondary market becomes clear.

Both Figma and Bullish took restrictive stances on pre-IPO liquidity, limiting the ability to establish an informed valuation baseline. When institutional demand surged on listing day, the absence of a pre-existing market benchmark contributed to dramatic repricing in real time.

Even an auction-style IPO process like that of Figma, which can improve transparency, depends on a credible starting price. Without meaningful data from real trades, pricing is still largely a best guess.

Unlike roadshows, where institutional investors can signal demand without capital commitment, secondary transactions represent actual pricing decisions, reflecting what buyers are willing to pay and what sellers are willing to accept, months or even years before an IPO.

Many founders avoid secondary markets, fearing volatility or loss of control. But in today’s capital markets, secondary trading is increasingly a strategic instrument. It enables leadership to validate pricing in real-world conditions, broaden the investor base, and enter the public markets with greater confidence and precision.

Companies that allow controlled, transparent secondary trading gain critical insight into true share value well ahead of a public offering. This intelligence helps them refine IPO pricing , minimize unnecessary dilution, and reduce the risk of disruptive market swings.

Consider recent IPOs from Chime and Rubrik, two companies that embraced secondary trading ahead of their listings. Their IPO prices aligned closely with private market trading valuations, helping avoid dramatic repricing seen in less-informed debuts.

Liquidity is a Tool, Not a Liability

Concerns that pre-IPO trading may create distractions or signal misalignment are gradually being displaced by recognition of its strategic value.

Today, leading companies use secondary market activity as a strategic tool, not only for employee liquidity, but for investor engagement, brand building, and crucial market intelligence. In a market landscape where private companies remain private for longer, foregoing this lever may mean missing out on both capital and strategic opportunities.

The idea that a $20 billion company can remain in a black box of valuation opacity until a two-week IPO roadshow and still achieve precision pricing is outdated. Public market readiness is a process, not an event, and secondary market participation is an essential part of that journey.

The Future of Smarter IPOs

Figma and Bullish both achieved remarkable debuts. But beneath the excitement lies an important lesson: if companies don’t let the market test and inform their valuation before listing, the public markets will do it for them, and the forfeited value may be substantial.

By complementing their IPO processes with measured secondary market engagement, both Figma and Bullish could have captured real-time price discovery, preserved more value for shareholders, and entered the public arena with greater precision.

A robust secondary market does more than offer liquidity; it delivers confidence, clarity, and value preservation. For late-stage companies preparing for a listing, embracing secondary trading is now a critical part of pre-IPO strategy and an essential step toward a smarter path to the public markets.