Design software maker Figma has raised more than $1.2bn at an almost $20bn valuation in its initial public offering, the latest positive signal for venture capital-backed start-ups that have waited for years to go public.

Figma Inc.’s US initial public offering is approaching 40 times oversubscribed, according to people familiar with the matter, as the design and collaboration software company heads for what could be the year’s most in-demand listing.