Design software company InVision, once valued at $2B, plans to shut down at the end of 2024, after raising $350M+ from Goldman Sachs, Spark Capital, and others
In recent years, creators have made inroads into traditional entertainment through brand partnerships and other collaborations.
The InformationMaria Heeter
Context & Ripple Effects
InVision’s planned closure reverses the trajectory established by its 2017 and 2018 fundraising, including a $115M Series F at a $1.9B valuation that brought total funding to roughly the amount cited in this report. The contrast matters because it shows that substantial capital and a multibillion-dollar private valuation did not ensure a durable independent software business.
The design-software market was also supporting high private valuations for other companies: Figma’s 2020 funding round valued it at $2B, while Canva was reportedly arranging a large secondary sale near a $26B valuation. InVision’s exit therefore sharpens the distinction between category growth and the survivability of individual platforms.
First-order effects
InVision customers and teams must plan to replace or migrate away from the company’s design-collaboration tools before the stated shutdown date.
Goldman Sachs, Spark Capital, and other backers face the final outcome of an investment that exceeded $350M in aggregate funding.
Second-order effects
Remaining design-software vendors can compete for displaced InVision users, but migration friction may make workflow continuity, integrations, and collaboration features decisive purchase criteria.
The closure gives investors a clearer negative reference point when judging late-stage design-software valuations and the conversion of venture funding into lasting customer adoption.
Third-order effects
If similar outcomes persist, design collaboration may consolidate around a smaller number of platforms with enough product breadth and user traction to withstand long software buying cycles.
The case reinforces a broader venture-market shift from valuing category leadership narratives to testing whether subscription software can sustain independent scale; the supplied record does not establish why InVision failed.
The trend: Design software is moving toward a more concentrated market in which capital raised and past valuation matter less than sustained platform adoption and durable subscription economics.
InVision was a huge part of my day-to-day design workflow when they launched, they were also the first company to support one of my side projects back in 2016. I'm sad to see them go, thank you @InVisionApp ❤️ https://www.invisionapp.com/ ... [image]
🪦💀 RIP InVision An absolute staple of my early career life and a powerhouse for digital designers everywhere in the late 2000s I'll be honest though, it died for me when I discovered Sketch and Figma. https://www.invisionapp.com/ ...
Huge indication of how design and collaboration is evolving. There's no doubt other tools consolidated and expanded upon their core offerings, but I have a lot to thank Invision for. https://www.invisionapp.com/ ...
I find the Invision closedown super interesting (having not been a customer for years). So they sold one of their features, Freehand, to Miro in November. Now in January, they're closing down the remaining features: news here https://www.invisionapp.com/ ...
It still blows my mind that a company with $100M+ ARR managed to go under only a few years later! 🤯 Definitely bittersweet news to me... We had a very special team of kind and talented people. Many of whom I still call friends. https://www.invisionapp.com/ ...
InVision at one point was THE tool for prototyping then Figma came along tech moves fast so long Clark from Invision, thanks for everything https://www.invisionapp.com/ ...
My first prototyping tool ❤️ I had to install it as a plug-in in sketch to do click prototypes and hotspots. Goodbye old friend https://www.invisionapp.com/ ...
The “tools for designers” business is wild Companies like Figma thrive doubling down on designers while others, like Invision, get bottlenecked https://www.invisionapp.com/ ...
Damn. Have not been following Invision, had no idea. I remember DSM being announced and it was incredibly ambitious at the time. Figma just ate up the market. Product life cycle fatigue is real though. Here today, gone tomorrow. Many such cases. https://www.invisionapp.com/ ...
InVision is shutting down 🥹. Last year, they sold their Freehand Tool to Miro. It was my first ever UI Design and Prototyping tool after Photoshop. https://www.invisionapp.com/ ...
Even though their products never really fit my needs I'm appreciative for what Invision has done for the design community and am sad to see them close. The Design Genome Project, free ebooks/reports, and podcasts have been super useful to me. https://www.invisionapp.com/ ...
Well, great. @InVisionApp shutting down collaboration and prototyping features at the end of the year. What's the best alternative? Figma? Every time I open Figma, I go back to Sketch after 10 minutes of frustration... https://www.invisionapp.com/ ...
InVision filled in many of the gaps for the product design workflow. It was an exciting company that provided truly valuable content in its marketing and I'm sad to see it come to an end. Thank you to everyone who worked there over the years! https://www.invisionapp.com/ ...
Looks like @InVisionApp is shutting down. While it's disappointing to see such a staple in the design world go, the signs were there. We've watched the industry evolve, and perhaps this was the inevitable next step. https://www.invisionapp.com/ ... #webdesign #prototyping
Back in undergrad my Interaction Design instructor made us use Photoshop for our first web project to humble my class. InVision in tandem with Sketch was a game changer at the time and I'll never forget that. R.I.P. to a real one 🥲 https://www.invisionapp.com/ ...