Ex-Disney CEO Bob Iger Joins Canva As Investor And Advisor As Design Unicorn Clears $40 Billion Valuation

Global graphic design platform Canva was one of the most watched companies in 2021, with over 75 million monthly active users and a $40 billion valuation. But the Australia-based unicorn, minted during the pandemic, was downgraded recently as investors grapple with concerns surrounding the overvaluation of tech stocks.

Despite industry pessimism, Canva's long-term growth potential seems to be undisputed — former Walt Disney Co. CEO Bob Iger invested in the graphic design company in May 2022. Iger, whose total investment remains undisclosed, also joined the company's board. 

"We're incredibly excited to welcome Bob Iger as an investor and adviser," Canva spokesman Lachlan Andrews said. "Bob brings a wealth of experience after 15 years at the helm of one of the most loved and most creative brands in the world, and we're looking forward to working with him."

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Pandemic-Fueled Growth 

In September 2021, Canva raised $200 million from venture capital firms such as T. Rowe Price Group Inc., Franklin Templeton Investments, Sequoia Capital Global Equities and others, giving the startup a valuation of $40 billion. The graphic tech firm, slated to compete with industry leaders Adobe Inc. and Microsoft Corp., crossed 60 million monthly active users in 190 countries at the time, making it a potential industry disruptor. 

In 2021, startup investing for both venture capitalists and retail investors exploded in popularity. Venture capital investments hit an all-time high by several measures of growth. And retail startup investing platforms like StartEngine saw hundreds of millions of dollars in investments from retail investors that year. The success has largely continued, with StartEngine most recently raising over $18 million in their ongoing equity crowdfunding raise.

"Visual communication has emerged as a universal need for teams of every size across almost every industry," Canva Co-Founder and CEO Melanie Perkins said in a press release. "It has been incredible to see the continued growth of Canva across the globe over the last year. More than 60 million people are now using Canva for everything from launching startups to raising awareness for nonprofits, supporting remote learning, collaborating in distributed teams and managing global enterprise brands at scale. We're incredibly excited to be further accelerating our mission to truly empower the world to design."

The company boasts over 110 million monthly active users, an 83.3% jump from late 2021. In addition, Canva's paid app extension for Microsoft Teams topped 5.8 million subscribers, making it one of the fastest-growing platforms in the graphic design space. 

In the previous year, Canva made strategic acquisitions of two European startups: Kaleido, a visual artificial intelligence (AI) platform in Austria, and Smartmockups, a product mockup generator based in the Czech Republic.

Over the past year, Canva made significant strides in expanding its product offerings, transforming into a comprehensive platform for visual communication encompassing text, graphics and productivity tools. The all-encompassing suite puts Canva in more direct competition with Microsoft, Google and design industry leader Adobe because it spans various domains, including websites, whiteboards, documents and developer marketplaces. In November 2022, Canva joined the AI race and unveiled tools powered by artificial intelligence.

Canva generated profits within five years of its founding 11 years ago and has achieved profitability for six consecutive years consecutively as of 2022. The up-and-coming graphic design firm is estimated to have achieved an annualized revenue run rate of $1 billion last year. 

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Adjusted Valuation 

Australian startups are facing financial challenges. While they were initially valued on paper in the hundreds of millions of dollars, they now need more cash reserves and are seeking funding at significantly reduced rates. Consequently, venture capital firms are reevaluating and significantly decreasing their holdings.

U.S. investment firm Franklin Templeton, which had participated in Canva's last funding round in September 2021, reduced the assessed worth of its investment by 10%. Blackbird VC adjusted its valuation of Canva by 36% to $25.6 billion, while T. Rowe adjusted Canva's valuation by 67.6% on its balance sheet. 

Despite the recent downgrades, Canva remains optimistic about its future growth prospects, with a spokesperson stating, "As a profitable company with very healthy cash reserves, we're in a fortunate position to continue focusing on building an enduring company for the long term. Regardless of the macroeconomic environment, we're well-positioned to continue doubling down on key initiatives, including growing our team and expanding our product and AI innovation efforts."

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