Canva takes a $20 billion hit after Blackbird Ventures slashes the software giant's valuation
A huge blow to the young Australian founders of tech start-up Canva as the stock market darling is hit by a brutal $20 BILLION pullback
- Graphic design software group Canva has cut valuation by $20 billion
- Was valued at AU$54 billion on the Australian stock market 10 months ago
- Venture capital firm Blackbird Ventures reduces Canva’s value by 36 percent
An Australian tech start-up that was once worth more than Telstra and Woolworths has taken a major hit after its value plunged more than a third.
Graphic design software group Canva was the darling of the Australian stock market 10 months ago, with an estimated market cap of AU$54 billion.
The start-up – founded by young Australians Melanie Perkins and Cliff Obrecht a decade ago – has more than doubled in value in five months.
But the company has now suffered a massive plunge after a key investor slashed the value of the company by 36 percent.
Venture capital firm Blackbird Ventures reduced Canva’s value by $20 billion.
Canva founder Melanie Perkins, her husband Cliff Obrecht and their friend Cameron Adams (right) saw the startup’s valuation plummet by more than a third
The move also erases some of the net worth of Canva’s founders – Melanie Perkins, husband Cliff Obrecht, and friend Cameron Adams.
Blackbird Ventures points out that other public and private technology companies also saw a one-third decline in value in the last quarter due to ‘brutal’ market conditions.
“After an unprecedented increase in valuations for public and private technology companies during 2021, the first six months of the year saw a significant decline in these valuations,” the company told news.com.au.
‘After an exhilarating period in 2021, the public market has become brutal to tech companies. The holding’s new valuation reflects this decline in the public market. This does not reflect the decline in Blackbird’s enthusiasm for Canva.’
Perkins and her husband own a 30 percent stake in the company with their value reduced from $16 billion to $6 billion.
Canva founder Melanie Perkins was studying at uni when she came up with the idea to create easy-to-use graphics software to help schools create their own yearbooks.
Canva promises to bounce back stronger than ever and insists its growth trajectory remains unaffected.
“As a profitable company with large cash reserves, we see this period as a unique opportunity to multiply growth,” a Canva spokesperson told the Australian Financial Review.
‘We continue to see unprecedented growth in teams and workplaces as they seek to tighten budgets by incorporating their marketing and visual communication tools into Canva, and we are confident that whatever the market conditions, we will exceed our current assessment in not too long. -the future is too far away,’
Perkins and her now husband started a multi-billion business from a Perth parlor 12 years ago during the early stages of their relationship.
Canva was estimated to have a market cap of AU$54 billion last September. Pictured are founders Cameron Adams, Cliff Obrecht and Melanie Perkins
The couple started with a bank loan and a $5,000 tax deduction, which they used to advertise online and send sample yearbooks to schools.
They started Canva in 2013 – bought the URL canva.com for $2,500 – and moved to Sydney in 2014 to grow the business.
It now has 60 million customers in 190 countries worldwide, with more than 2000 employees.
The couple announced plans to give away most of their wealth to various philanthropic causes after following last year’s $54 billion valuation.
They signed up for Bill Gates’ the Giving Pledge as part of their commitment to giving away their wealth for the rest of their lives.
“We have a very optimistic belief that there is enough money, goodwill and goodwill in the world to solve most of the world’s problems,” the pledge said.
‘We feel this is not only a great opportunity, but an important responsibility and we want to spend our lives working towards it.’
Ms Perkins and her now husband started the company from a Perth parlor 12 years ago
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