Investor Canva reduced the value of its stake by 58.5 percent

Investor Canva reduced the value of its stake by 58.5 percent

Capital Group reduced the value of its stake by only 10 percent, while other investors kept the value of their shares stable.

The revaluations suggest that Canva’s total value has fallen sharply since September 2021, when the funding round valued the company at $ 40 billion. The revaluation of Franklin Templeton suggests that Canva could be worth $ 16.6 billion, while the write-off by T Rowe Price adds about $ 32 billion to the company. Capital Group’s default valuation would be about $ 36 billion.

A Canva spokesman said it would be inaccurate to determine a company’s valuation on the basis of a single investor, especially since the valuation from institutional investors was strongly affected by the shocks that flogged technology stocks.

Founded in Sydney in 2013 by Cameron Adams, Cliff Obrecht and Melanie Perkins, Canva, an online graphic design platform, is a worldwide success story.

It has more than 85 million users, annual sales in excess of $ 1 billion and a positive cash flow. Former Disney CEO Bob Iger recently announced that he joined the company as a consultant and investor, while last week’s Financial Review Rich List valued Mr. Adams at $ 6.9 billion, with Mrs. Perkins and her husband Mr. Obrecht valued at 13.82 billions of dollars.

The extraordinary rise in Canva’s valuation – from $ 6 billion in June 2020 to $ 40 billion in September 2021 – has also benefited Australia’s local venture capital sector, with early supporters such as Blackbird, SquarePeg and AirTree all enjoying huge returns on their investment. .

Franklin Templeton’s revaluation of Canva’s shares comes amid a brutal period for the global technology sector, with the Nasdaq Composite Index falling nearly 24 percent this calendar year.

Venture capital firms traditionally overestimate shares in start-ups when a round of financing takes place in a company. Blackbird and SquarePeg declined to comment specifically on Canva, but SquarePeg founder Paul Bassat said his firm “recently added another approach to our valuation process to obtain external independent valuations of our tangible assets.”

“We believe this is entirely appropriate given the scale that some companies in our portfolio are now reaching,” he added.

Mr Bassat said one of the key benefits of private markets is that investors are not regularly reassessed during stock market growth or corrections.

“Without a daily mark on markets, private markets can focus on long-term value creation, which is incredibly important in the long-term asset class, such as venture capital,” he said.

“We think this is one of the main advantages of venture capital compared to other asset classes. The most important thing for our long-term return will be to identify remote companies whose success can be huge, and we will continue to focus on that. ”

On Tuesday evening, Bloomberg announced that US investment titan Fidelity Investments had reduced its stake in the social media group Reddit by a third in just one month, while reducing its stake in the Stripe and Tik-Tok payment groups. ByteDance owner by 13 percent over the same period. Fidelity has also halved the value of its stake in Instacart since last April.

Canva said on Wednesday that he was blocking Russia from his platform after the invasion of Ukraine. The move is expected to reach about 1.4 million users.

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