Index Ventures has emerged as venture capital’s winner, transforming an $86.5 million investment in Figma Inc. (NYSE:FIG) into a stake worth nearly $6 billion following the design platform’s explosive market debut.
Index Ventures Beats Silicon Valley Elite
The European-founded venture firm outperformed industry titans, including Sequoia Capital on multiple high-profile exits. Index generated more returns than Sequoia on both Figma and cybersecurity firm Wiz, reported The Wall Street Journal, despite Sequoia’s reputation as Silicon Valley’s premier venture firm.
Index sold approximately 5% of its Figma holdings at the $33 IPO price, generating $108 million while retaining over 15% ownership post-IPO. The firm’s stake ballooned when Figma shares surged 250% on their first trading day to $115.50, though shares have since pulled back 27.38% to $88.25, according to data from Benzinga Pro.
Multi-Billion Dollar Portfolio Windfall
Beyond Figma, Index is positioned for massive returns across its portfolio. The firm received over $1.4 billion when Meta Platforms Inc. (NASDAQ:META) acquired a 49% stake in Scale AI. Index’s stake in Wiz could be worth $4.3 billion if Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) pending $32 billion acquisition closes, according to the report.
These exits could deliver more than $11 billion in proceeds to Index and its limited partners, representing exceptional performance during a challenging venture market environment.
See Also: Trump Is Playing With Inflation Data, People Say—Here's What We Know
Strategic Early-Stage Focus Drives Returns
Index’s success stems from leading seed rounds rather than following larger competitors into later-stage deals. The firm led Figma’s 2013 seed round with $1.8 million after partner Danny Rimer spotted co-founder Dylan Field during an intern presentation.
“It was a high conviction shot by Index,” said Terrence Rohan, former Index investor and current managing director at Otherwise Fund. Index’s strategy emphasized board participation and active support over making numerous small bets, according to WSJ.
Disciplined Growth Strategy
Founded in Switzerland in the 1990s, Index raised $2.3 billion across two funds in 2024, less than its 2021 fundraising. This contrasts with aggressive expansion by rivals like Sequoia and Andreessen Horowitz.
“The performance they’ve delivered is unbelievable,” said Miles Dieffenbach, managing director at Carnegie Mellon University and Index limited partner, according to the report. “They could raise as much capital as they want to and they don’t.”
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: M.oo / Shutterstock.com
