Canva Raises $ 200 Million at $ 40 Billion Valuation – TechCrunch
Cloth is now valued at $ 40 billion following a further injection of capital of $ 200 million (USD) in a round led by T. Rowe Price. New and existing investors participated in the round, including Franklin Templeton, Sequoia Capital Global Equities, Bessemer Venture Partners, Greenoaks Capital, Dragoneer Investments, Blackbird, Felicis and AirTree Ventures.
This cycle consolidates Canva as one of the most valuable private software companies and also propels Australia’s tech scene forward.
Co-founder and CEO Melanie Perkins and her team started working on Canva in 2012 and launched the product in 2013. The premise behind it was relatively simple, but the technology itself… not so much.
Canva makes it easy for everyone to design. Presentations, t-shirts, brochures, flyers… you name it. The first step is to create a really simple user interface, where users can just drag and drop components into their designs, with hundreds of thousands of models, without doing a lot of tweaking. The second step is to create a massive library of content, from fonts and templates to images, gifs and videos. The third step is to make this product accessible to everyone, whether it is a platform or a device, a language or a price.
Tackling everyone, rather than just designers, has proven to be incredibly successful for the company. To be clear, designers still use Canva to lay out the components they’ve designed in other products, such as Figma and Sketch, and Canva works well with a variety of design software products. But Canva has no plans to take on Figma, Adobe, or Sketch.
Perkins described it with the example of a business card. Designers will create the components of a business card on their preferred design platform, then layout the business card template in Canva, sharing that template with the entire organization. That way, when someone changes titles or a new employee comes in, they can actually edit the card themselves without the help of a designer and send it to print.
TechCrunch asked Perkins why Canva hasn’t extended the platform more aggressively to the workflow of professional designers.
“We would like to replace the PDF,” Perkins said. “Rather than the people sending PDFs back and forth between designer and client, designers can just create a template for the organization to use. It is less important for us to be absolutely good at things like vector design because there might be some amazing programs out there. We really want to focus on this collaboration.
Although a bottom-up business strategy is relatively popular these days, Canva was one of the early masters of the model. Canva was launched as a free product, and over time the company has introduced corporate layers into the mix.
Currently, Canva has over 60 million monthly active users in 190 countries, with large companies on the corporate level. This includes Salesforce, Marriott International, PayPal, and American Airlines. Canva expects to exceed $ 1 billion in annualized revenue by the end of 2021. More than 500,000 teams pay for the product to some extent.
With a team of 2,000, Canva will use the new funds to double its workforce next year.
Canva also shared its DEI figures, with women making up 42% of the workforce. The company did not share any statistics on people of color on the team.
Perkins told TechCrunch that much of the company’s growth has come from an obsession with creating a great-value free product.
“We intentionally make our free product extremely generous for a number of reasons,” said Perkins. “This is essential for both our marketing and our mission to empower people in design. But, as part of our marketing, it means people can like the product, share it with friends and family, and promote it on social media. And then this virality very quickly feeds our growth.
Along with the growth of the team, Canva also plans to develop the product further over the next year, launching website design soon. This will allow users to turn existing and new presentations and designs into a website, and even search and purchase a domain for that site.
Canva is also working on a new video editor and offline mode.
Perkins says Canva has two goals, and each feeds the other. One is to become one of the most valuable companies in the world, and the other is to do as much good as possible.
The company has already joined the 1% commitment and is striving to be a force for good, including offering the premium product to over 130,000 nonprofits, allocating over 45,000 volunteer hours each year and launching Print One, Plant One, which is a project that plants a tree for every print order placed through Canva.
With today’s funding announcement, co-founders Perkins and Cliff Obrecht are committing the vast majority of their equity in the business (around 30%) to doing good in the world, with the intention of doing so. through the Canva Foundation.
Perkins will be joining us at Disrupt to talk about new funding, evaluation, what’s in store for Canva and share his broader thoughts on design as a category.