Canva's valuation has dropped by about 36% from its peak valuation, but the software company doesn't seem too fazed by it.
👉 Background: Canva is the Australian-based design software that's been trailblazing internationally. They've got more than 16 million paid users globally and they've made a whopping $1.5 billion revenue in the last year. And, when it was party time in the tech sector, Canva was valued at $40 billion USD.
👉 What happened: One of Canva’s largest investors, Blackbird, has sold down $150 million worth of Canva shares in a secondary share sale. They sold shares at a valuation of $25.5 billion USD. This means Canva's valuation has dropped by about 36% from their peak valuation.
👉 What else: But Canva founders don't seem too fazed because they reckon their valuation is pretty solid compared to other tech companies in the currently slowing economy. They think this deal is a step towards their big goal: an IPO in the US..which will help early partners cash out.
💡In many tech startups, employees are often given shares in the company as part of their pay package. But here's the thing: those shares can't just be sold willy nilly like the public stocks on the sharemarket. They're not liquid.
💡In fact, Canva has over 4000 employees and early employees and investors are waiting to turn their shares into bucket loads of cash.
💡As a result, companies like Canva need to achieve a 'liquidity event' to unlock the money. And in Canva's case, it's looking like that liquidity event will be an IPO, where employees will be able to sell their shares on the public market.
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