The Story of Canva
How a 19 year old girl's vision took the company to valuation of $6 billion
A Thread
How a 19 year old girl's vision took the company to valuation of $6 billion
A Thread
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It’s super-rare for a tech start-up to succeed and join the billion-dollar club, so rare that those that do are called unicorns. Graphic design platform Canva joined these ranks two years ago, which meant a huge income increase for its three founders.
It’s super-rare for a tech start-up to succeed and join the billion-dollar club, so rare that those that do are called unicorns. Graphic design platform Canva joined these ranks two years ago, which meant a huge income increase for its three founders.
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Filipino-Australian Melanie Perkins, Canva’s CEO and co-founder, has amassed a personal fortune of US$1.3 billion, making her the youngest billionaire in Australia at the age of 32
Filipino-Australian Melanie Perkins, Canva’s CEO and co-founder, has amassed a personal fortune of US$1.3 billion, making her the youngest billionaire in Australia at the age of 32
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Perkins was just 19 when she was first struck by the idea. It was 2006 and she and Cliff Obrecht, her then boyfriend and currently fiancé, were studying at university in Perth.
Perkins was just 19 when she was first struck by the idea. It was 2006 and she and Cliff Obrecht, her then boyfriend and currently fiancé, were studying at university in Perth.
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The teen would earn a little income on the side by teaching other students design programs. But students found the platforms offered by the likes of Microsoft and Adobe “crazy hard” and she felt there must be a better way.
The teen would earn a little income on the side by teaching other students design programs. But students found the platforms offered by the likes of Microsoft and Adobe “crazy hard” and she felt there must be a better way.
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"People would have to spend an entire semester learning where the buttons were, and that seemed completely ridiculous,” Perkins says. “I thought that in the future it was all going to be online and collaborative and much, much simpler than these really hard tools.”
"People would have to spend an entire semester learning where the buttons were, and that seemed completely ridiculous,” Perkins says. “I thought that in the future it was all going to be online and collaborative and much, much simpler than these really hard tools.”
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So she and Obrecht set to work making that vision a reality.
With few resources and little business experience behind them, the couple started small and created an online school yearbook design business, Fusion Books, to test out their idea.
So she and Obrecht set to work making that vision a reality.
With few resources and little business experience behind them, the couple started small and created an online school yearbook design business, Fusion Books, to test out their idea.
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They launched a website for students to “collaborate and design their profile pages and articles.” The pair would then print the yearbooks and deliver them to schools across Australia.
They launched a website for students to “collaborate and design their profile pages and articles.” The pair would then print the yearbooks and deliver them to schools across Australia.
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“My mum’s living room became my office, and my boyfriend became my business partner, and we started enabling schools to create their yearbooks really, really simply,” says Perkins.
“My mum’s living room became my office, and my boyfriend became my business partner, and we started enabling schools to create their yearbooks really, really simply,” says Perkins.
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The business was a success, and remains active today. But for Perkins, it was just the first step in what she called her “crazy, big dream” for a one-stop-shop design site — so she began chasing investors.
The business was a success, and remains active today. But for Perkins, it was just the first step in what she called her “crazy, big dream” for a one-stop-shop design site — so she began chasing investors.
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A few years later in 2010, while at a conference in Perth, Perkins received her first big break.
A few years later in 2010, while at a conference in Perth, Perkins received her first big break.
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A chance encounter with Silicon Valley investor Bill Tai saw him invite Perkins to San Francisco to pitch her idea. Just hours later, the legendary venture capitalist, clearly impressed, was connecting her with his contacts.
A chance encounter with Silicon Valley investor Bill Tai saw him invite Perkins to San Francisco to pitch her idea. Just hours later, the legendary venture capitalist, clearly impressed, was connecting her with his contacts.
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“I thought that he didn’t really like what I had to say. He was on his phone, and I thought that meant he wasn’t really engaged in what I had to say about the future of publishing,” says Perkins.
“I thought that he didn’t really like what I had to say. He was on his phone, and I thought that meant he wasn’t really engaged in what I had to say about the future of publishing,” says Perkins.
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“But then I got home and realized that he was actually introducing me to a few people.”
“But then I got home and realized that he was actually introducing me to a few people.”
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The young couple was winning over major investors and building out Canva’s design platform with a fast-growing team of tech engineers.
The young couple was winning over major investors and building out Canva’s design platform with a fast-growing team of tech engineers.
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But it was in 2012 that the business began in earnest. With the help of their tech advisor and the co-founder of Google Maps, Lars Rasmussen, Perkins and Obrecht found a tech co-founder in Cameron Adams and a tech developer in Dave Hearnden.
But it was in 2012 that the business began in earnest. With the help of their tech advisor and the co-founder of Google Maps, Lars Rasmussen, Perkins and Obrecht found a tech co-founder in Cameron Adams and a tech developer in Dave Hearnden.
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Months later, at the close of their first funding round, the company was oversubscribed. That initial $1.5 million investment was even matched by the Australian government in a bid to keep the company on Aussie shores.
Months later, at the close of their first funding round, the company was oversubscribed. That initial $1.5 million investment was even matched by the Australian government in a bid to keep the company on Aussie shores.
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The following year, the site went live, allowing subscribers to create a variety of online designs for free
The following year, the site went live, allowing subscribers to create a variety of online designs for free
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Canva operates what’s known as a freemium model, with some options available for free and others available for a fee. It also has a growing enterprise business, working with companies like Hubspot Inc., Warner Music Group Corp., Skyscanner Ltd. and American Airlines Group
Canva operates what’s known as a freemium model, with some options available for free and others available for a fee. It also has a growing enterprise business, working with companies like Hubspot Inc., Warner Music Group Corp., Skyscanner Ltd. and American Airlines Group
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It now has more than 1.5 million paying subscribers and has more than 30 million monthly active users, acquired free content sites Pexels and Pixabay last year, adding more than 1 million stock photos, vectors and illustrations on to its platform, its website shows
It now has more than 1.5 million paying subscribers and has more than 30 million monthly active users, acquired free content sites Pexels and Pixabay last year, adding more than 1 million stock photos, vectors and illustrations on to its platform, its website shows
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In June 2020, round of $60 million in funding nearly doubles 2019’s $3.2 billion valuation, and makes the Sydney-based startup the most valuable private technology business in Australia.
In June 2020, round of $60 million in funding nearly doubles 2019’s $3.2 billion valuation, and makes the Sydney-based startup the most valuable private technology business in Australia.
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The round was led by Blackbird Ventures and Sequoia China, with participation from existing backers including General Catalyst Partners, Felicis Ventures and Bond
The round was led by Blackbird Ventures and Sequoia China, with participation from existing backers including General Catalyst Partners, Felicis Ventures and Bond
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At $6 billion, Canva carries a valuation nearly twice the market capitalization of Box and close to that of Dropbox, though it has a long way to go to compare in size with design software’s market leader, Adobe
At $6 billion, Canva carries a valuation nearly twice the market capitalization of Box and close to that of Dropbox, though it has a long way to go to compare in size with design software’s market leader, Adobe
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