InVision's $2B design-collaboration bet ended in a 2024 shutdown as Figma ate the market

InVision made browser-based prototyping and design-collaboration tools for product and UX teams, including prototypes, DSM and the Freehand whiteboard.

That design work would split into separate tools and stay in the browser — prototyping, handoff and collaboration as a layer that never needed to be the editor itself.

$1.5M in its first year, $45M in 2015, $100M in 2017 and $115M in 2018, peaking at a $2B valuation (Silicon Republic).

Founded in New York in 2011 as a prototyping tool, InVision raised steadily and became the default place designers made clickable prototypes. By 2017, around 60% of surveyed UX and product designers used InVision for prototyping, versus only 6% for Figma; the company reached unicorn status in 2017 and a $2B valuation the following year.

Figma, publicly released in 2016, combined UI design and prototyping in one collaborative editor and overtook InVision: by 2020, 57% of survey respondents used Figma as their main tool. InVision answered with Freehand and other add-ons instead of rebuilding its core. Adobe agreed to buy Figma for $20B in 2022, but that deal collapsed under regulatory scrutiny in late 2023 — and did nothing for InVision, whose product kept losing share. Freehand was sold to Miro at the end of 2023.

On January 4, 2024, CEO Michael Shenkman announced InVision would discontinue its design-collaboration services at the end of 2024. Users were told to export their work, and all documents were deleted shortly after December 31, 2024. Miro absorbed Freehand's users, honoring their subscriptions and offering data migration.

InVision bet that collaboration could live as a separate layer on top of other tools, so it never had to own the design canvas — the one thing Figma used to absorb the market.

It was the default prototyping tool in 2017 but treated its lead as durable, responding to Figma with add-ons instead of rebuilding the core product experience.

Adobe's $20B Figma acquisition attempt, which collapsed in 2023, showed where the market's center of gravity had moved — and left InVision with no buyer and no path.

When the platform below you adds your feature, the add-on's users become the platform's users; InVision's exit was a managed migration rather than a sale of the company.

Being the popular add-on doesn't protect you when the core tool moves into your feature: a layer that sits on top of another product can be absorbed by the platform below it.

As of the sources reviewed, InVision's platform shut down at the end of 2024 as announced, with all user documents deleted shortly after December 31, 2024. Freehand, the one product spared, had been sold to Miro in late 2023; Miro honored Freehand subscriptions, offered data migration, and began folding the tool's capabilities into its own whiteboard. The InVision brand and company name did not survive as an operating business in the sources reviewed.