Figma — A Product Use Case — Part 1

Photo by Shubham Dhage on Unsplash

The pain point(s) Figma solves for

  • Long Iterations and broken feedback cycles between product design and the rest of the product team. There is a lot of time wasted uploading or syncing screens, creating share links, and messaging people seeking feedback. This is specifically important for remote and different time-zone teams
  • The inconsistent transition from design to code. The friction developers find to transition the designs shared by the designers into code and not being able to exactly meet the design requirements
  • Lousy performant web-based design solutions. Most of the design software is native apps and not in the cloud which comes with the need for software update and installation, not to mention the rigorous license purchase process, especially for large enterprises.
  • The lack of a powerful and performant design and prototyping (low-to-high fidelity) solution.
  • Hard and not very intuitive design solutions for non-designers which in return increases barriers and silos between the team members.

Evidence that the pain points Figma addresses are widespread enough to make it viable

  • Revenue in the Software market is projected to reach $626.5B in 2022.
  • The market’s largest segment is Enterprise Software with a projected market volume of $250B in 2022.
  • Revenue is expected to show an annual growth rate (CAGR 2022–2026) of 7.12%, resulting in a market volume of $824.8B by 2026.
  • In global comparison, most revenue will be generated in the U.S. ($313.7B in 2022).
  • My assumptions:
  • For simplification, I am only calculating it for the US market
  • I will link the used resources below
  • If we look at the distribution of different size tech companies in the U.S. we see that 97.9% of firms are small (< 100 employees), 1.9% are medium (100–999 employees) and only 0.2% are large (1,000+ employees)(3).
  • Figma sells its core product using a freemium model, with a starter free plan for up to 3 editors. Enterprises can opt-in for the professional plan pilled at $12 /editor/month or $15 month-to-month plan for smaller companies for a more pay-as-you-go model or critical business corporates can pay $45 /editor/month for a more secure option.
  • I will assume that small and medium companies would subscribe to the $12 /editor/month as it has more value to price compared to the from month-to-month which I see matches more freelancer and independent designers

What makes Figma value unique and difficult to replicate?

  • Figma has all the features and capabilities of Sketch + Abstract + InVision + Craft + Liveshare + Freehand + Zeplin + Dropbox all in one.
  • Figma is a web-based design tool, which gives it a very good edge as there is no software needed to be downloaded while also giving you the option to work offline by downloading any of the different platform supported native apps
  • Figma has Live share: When you share your prototype with colleagues or customers you get to see what they’re seeing on their screen and follow their cursor around.
  • Built in-app commenting, anyone with the link can add comments anywhere on the design, you can tag people for better collaboration and an effective feedback cycle
  • Version Control. Figma includes version history for all collaborators. You can roll back to or fork from a previous state.
  • Easier transition from design to code, Figma displays code snippets on any selected frame or object in CSS, iOS, or Android formats for developers to use when reviewing a design file. No need for a 3rd party tool with the ability to use Zeplin to do more than simple measurement and CSS display
  • Figma developer APIs provide 3rd tool integration that allows true integration with any browser-based app.
  • A web-based performant app backed by a powerful 2D WebGL rendering engine that supports very large documents.
  • Powerful and various plugins that support designers to add new functionalities, power up their design workflow with these small and mighty apps
  • Figma helps system designers remove the guesswork in building designs by providing analytics on library usage and adoption between different teams and departments which, helps with more informative decisions.
  • FigJam which a new offering from Figma that replaces miro and MURAL-like tools for brainstorming, Ideation, collaboration, and high-level planning.
Credits: 2021 Design Tools Survey
Credits: 2021 Design Tools Survey

Figma’s purchasing funnel

credit: SaaStr Figmo COO interview
credit: SaaStr Figmo COO interview
Figma Pricing Model

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Aspiring Product Manager, tech, and venture excite me, traveling around the world is my ultimate goal. https://www.linkedin.com/in/alaa-khaled-97aa5880

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Alaa MohyEldin

Alaa MohyEldin

Aspiring Product Manager, tech, and venture excite me, traveling around the world is my ultimate goal. https://www.linkedin.com/in/alaa-khaled-97aa5880

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