News Summary
Figma is set to invest $14.79 million to grow its New York City office, adding two floors and creating 242 new jobs focused on research and development. This expansion aligns with Figma’s growth, boosting the local tech sector. The Empire State Development will support this initiative with up to $2.1 million in tax credits as the company reinforces its strategic importance in NYC’s diverse business landscape.
New York – Figma, a cloud-based design and product development company, is set to invest $14.79 million to expand its operations in New York City. This investment will facilitate the addition of two floors to the company’s existing office located in Manhattan’s Flatiron District. As part of this expansion, Figma plans to create 242 new jobs, primarily focused on research and development roles.
The expansion initiative aligns with Figma’s remarkable growth trajectory, which has seen its workforce swell from a few hundred employees to over 1,600 globally, with more than 280 employees currently based in the New York metropolitan area. These new positions aim to bolster New York’s technology sector and cater to the increasing demand for innovative design solutions.
The Empire State Development (ESD) will support Figma’s expansion through up to $2.1 million in performance-based tax credits available through the Excelsior Jobs Program. This assistance is part of the state’s continued efforts to foster business growth and job creation in New York.
Company Growth and Strategic Importance
Figma has consistently proven its value since its inception in 2012, evolving from a design tool to a comprehensive product development platform. Its product suite includes Figma Design, FigJam, Dev Mode, and Figma Slides, which are used by innovative companies around the globe to create digital experiences.
The decision to further invest in New York City underscores the location’s strategic advantages, such as a diverse talent pool and a supportive business environment. Figma’s New York office is now the company’s second largest and is expected to grow to approximately 500 employees by 2034.
Office Expansion Details
The planned expansion represents a significant commitment from Figma to the region. It supports not just overall business growth but also contributes to the ongoing development of the local technology sector. Figma’s Chief People Officer noted the company’s enthusiasm about extending their footprint in New York City since their office opened in 2021.
Wider Tech Sector Developments
New York City has emerged as an attractive hub for technology companies, with numerous organizations like OpenAI, Duolingo, and StubHub recently enhancing their presence in the area. Figma’s expansion is a testament to the city’s growing reputation as a prime location for tech innovation.
Financial Background
In recent developments, Figma faced a potential acquisition by Adobe valued at $20 billion, which ultimately fell through, resulting in a $1 billion breakup fee being paid to Figma. Following this, the company managed to raise additional funding at a significant $12.5 billion valuation and is exploring options for a public offering amid ongoing regulatory challenges related to acquisitions.
Global Reach and Diverse User Base
Figma’s user demographics reveal a strong international presence, with more than 85 percent of active users located outside the United States. A substantial portion of the company’s revenue, over half, is derived from international customers. In a strategic move to support its global ambitions, Figma has opened offices in several international cities, including London, Tokyo, Paris, and Berlin.
Moreover, Figma has diversified its customer base, with around two-thirds of its users not primarily identifying as designers and one-third consisting of software developers. This diversification reflects the company’s commitment to expanding its influence across industries and fostering collaboration among various professionals.
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Author: STAFF HERE NEW YORK WRITER
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