It’s a design platform that’s built for non-designers. But will the Syndey-based Canva IPO make its debut in 2021? That’s a question smart investors are asking after the company raised $60 million ahead of a $6 billion valuation.
According to TechCrunch, investors like Bond, General Catalyst, Sequoia Capital China, Felicis Ventures and Blackbird Ventures have previously thrown their money behind the company, and this has led to them raising more than $300 million in total financing, with $60 million being raised in this round of financing alone.
Canva’s COO Cliff Obrecht said that he initially resisted taking additional funding. “At our stage, investors are looking to deploy $50 million+ in capital,” he said.
“Even our existing investors were looking to deploy between $50 million and $100 million, but we said ‘Oh, gee, we really don’t want to be diluted that much because we have a lot of conviction in the business and we don’t need that much money.’ ”
So is Obrecht’s resistance to additional funding a sign of Canva’s IPO being delayed?
A Canva IPO May Not Happen Right Away
The Australian-based company is in a very unique position, unlike other tech companies. Since COVID-19 hit, software companies have been in a very precarious position.
However, while the company remains well-positioned, a Canva IPO has not yet been publicly declared, or even intimated, by those in charge.
That doesn’t mean it can’t happen, however.
“When it comes to an IPO, frankly, Canva is in charge of its own destiny, it can do whatever it wants there,” said AirTree Ventures partner Craig Blair, who has backed Canva in multiple funding rounds. “The fundamentals of the business are strong and it’s in a stronger position than the incumbents.”
Moving To The USA
While a Canva IPO might not quite be feasible in 2021, there’s still a good chance that it may come along in 2022. Contrary to the myth of “urban flight,” Canva is looking to open up an office in the United States, and is reportedly looking at an office in Austin, TX, as a possibility.
What’s more, because it’s a profitable venture — the company has been “in the black” since Q1 2017 — it may prove attractive to stock buyers should the company decide to go public.
“With a $6 billion valuation, Canva is now one of the world’s top so-called “unicorn” companies — private tech companies with a market value of $1 billion or more. It is the largest unicorn in Australia by far, with $1.8 billion fintech firm Airwallex trailing behind,” said CNBC.