Venture capital firm Blackbird has marked down the value of its stake in Sydney-based design platform Canva by 36%, while mutual fund company T. Rowe Price has slashed the value of its Canva stake by a staggering 67.6%. Despite the markdowns, Canva remains optimistic about its future growth and prospects.
The company, which was valued at $40 billion in a 2021 funding round, stated that it is well-positioned to focus on building a strong and enduring company. Canva emphasized its profitability, healthy cash reserves, and rapid growth, boasting over 135 million monthly active users. The company expressed confidence that its valuation will surpass previous levels as markets correct and its growth continues.
While the markdowns by Blackbird and T. Rowe Price suggest a substantial decrease in Canva’s value, the company downplayed their significance. Canva stated that it would be inaccurate to determine its valuation based solely on one investor’s assessment. Canva did not disclose whether it has adjusted its own independent valuation to align with T. Rowe Price’s assessment. The mutual fund’s markdown reflects its opinion rather than an official valuation.
Canva’s experience is not unique, as several high-valued startups, including Stockholm-based Klarna, have faced markdowns from their investors. Klarna’s valuation plummeted by 85% last year. Klarna responded to its reduced valuation by implementing cost-cutting measures and tightening lending standards. Canva, too, has embraced artificial intelligence (AI) to enhance its product offerings. The company has integrated generative AI into its suite of graphic design tools, with a focus on in-house development and acquisitions.
Despite speculation about a potential initial public offering (IPO), Canva’s spokesperson confirmed that there are no immediate plans for going public. The company’s co-founder and COO, Cliff Obrecht, acknowledged that an IPO is on the horizon but not imminent. Canva remains committed to its user-centric approach and continues to invest in AI-driven innovation to solidify its position as a leading graphic design platform.
