Figma's rapid ascent hasn't gone unnoticed by its larger competitors. In Sept. 2022, Adobe attempted to acquire Figma for $20 billion, but regulatory concerns scuttled the deal. Now, less than three years later, Figma is worth far more than that.

Shares of Figma slumped 23% on profit taking on Monday, as euphoria over the design software firm waned days after its blockbuster initial public offering.

No matter what Lina Khan says about Figma’s IPO success, acquisitions can actually be great for innovation. Sometimes acquisitions are a great strategy for growth—and sometimes they are not. In the case of Figma,