Learn how to invest in Canva stock before the IPO or when it arrives. Get access to select pre-IPO startups at Equitybee.
Canva Stock Recent News
10/12/2022: Microsoft launches Designer, its answer to Canva
10/04/2022: Canva founder got rejected by 100 VCs; Company now worth $26 Billion
07/26/2022: Blackbird reveals Canva’s $14b plunge in value
06/02/2022: Canva investor Franklin Templeton slashes value of stake
05/30/2022: Ex-Disney CEO Bob Iger takes stake in Australian design company Canva
05/17/2022: Canva Ranked #4 on CNBC’s Disruptor 50 List
03/08/2022: The rise of Canva, the $40 billion design juggernaut
09/15/2021: Canva Announces USD 40 Billion Valuation
04/06/2021: Canva Reaches $15 Billion Valuation
12/11/2019: How A Young Australian Kitesurfer Built A $3.2 Billion (Profitable!) Startup Phenom
07/22/2014: Canva raises an additional $3.6 million in funding, hits 600,000 users
What is Canva?
Canva is a Sydney, Australia-based software-as-a-service (SaaS) platform used for creating graphic designs.
But it’s not for professional graphic designers. Canva is for everybody else.
Instead of hiring a graphic designer to create images for social media and online businesses, the Canva software provides more than 800,000 templates that users can modify for their needs.
Standard template sizes are optimized for common photo size formats, such as Pinterest pins, book covers, and Facebook or Instagram posts.
The software empowers anyone with a computer or smartphone to make professional-looking graphics for any use.
In a modern era of social media, blogs, and videos, Canva’s software provides the design needs for creators to tell their stories.
The software is easy to use and offers a free version with paid upgrades. So almost anyone can open an account a try it. Once users learn the software, they pay for an upgraded account which supports Canva’s recurring revenue SaaS business model.
“Fueled by the global demand for visual communication”, Canva is a profitable company, boasting 60 million users and $1 billion in annualized recurring revenue.
Is Canva Stock Publicly Traded?
No. Canva is a private company.
Who Owns Canva?
CEO Melanie Perkins and COO Cliff Obrecht (cofounders and married as of 2021) are each estimated to own sizable amounts of the company, estimated by Forbes in September 2021 to be about 18% each.
A third founder, Cameron Adams, owns about 9%.
Canva has conducted several private equity funding rounds. The latest, completed in September 2021, raised $200 million, valuing the company at $40 billion.
Participants in the last round include Franklin Templeton, Sequoia Capital, T. Rowe Price, AirTree Ventures, Greenoaks Capital, Bessemer Venture Partners, Blackbird Ventures, and Dragoneer Investment Group.
Is Canva Worth $40 Billion? (TL;DR – No)
As of the September 2021 funding round, it’s possible. But pre-IPO valuations are subject to scrutiny.
The company claimed in late 2021 that it would hit $1 billion in revenue for the year.
SaaS companies with reliable recurring revenue can be worth several revenue multiples.
However, a lot has happened since Fall 2021.
The IPO market likely peaked around the end of 2021 with the Rivian IPO.
Furthermore, broader market volatility in 2022 due to inflationary pressures and U.S. Federal Reserve rate increases has added risks to the markets.
Instacart lowered its valuation to $24 billion from about $39 billion. Other pre-IPO companies may follow suit.
The author expects that if Canva were to complete its IPO today in light of market volatility, Canva would be worth less than $40 billion.
Blackbird Ventures recently revealed that it slashed its Canva valuation estimate by $14 billion, valuing the company at $26 billion.
However, the company is profitable, putting it in a rare class of fast-growing startups.
When is the Canva IPO Date?
There are currently no estimates of the Canva IPO date.
It’s unclear in which jurisdiction (Australia or the U.S.) the company will file for an IPO.
Bookmark this page to follow along as the company approaches its IPO.
What is the Canva Stock Price?
Canva is not publicly traded yet. There will be no stock price until the Canva IPO or SPAC.
What is the Canva Stock Symbol? Canva Ticker?
If Canva lists in the U.S., we will not know the Canva stock symbol until it files an S-1 with the SEC.
For now, we can only speculate on the U.S. Canva ticker. Here are some suggestions:
- CNVA
- CVA
- CANV
Where can I find the Canva S-1 Filing?
The Canva S-1 filing with the SEC is not available yet. If the company chooses to list in the U.S., the S-1 filing will be the first documentation available for financial review.
How to Buy Canva Stock in the Future
You cannot buy Canva stock today. When the company decides to move forward with an IPO, there may be an opportunity to invest.
This guide refers to buying Canva stock in the U.S. (not Australia).
1. Access shares via pre-IPO investing platforms
Considering the number of private investors in Canva, there may be an opportunity to buy Canva stock on pre-IPO investing platforms.
Shares may become available if early investors or employees want to cash out before the IPO. This may become more likely if the company raises another fresh round of private equity capital.
The SEC requires pre-IPO investors to be accredited, meaning a net worth above $1 million (not including primary residence) or an income above $200,000 (or $300,000 with a spouse).
A few platforms have evolved to give these individuals a way to fund stock options or liquidate holdings before the IPO.
Equitybee provides accredited investors access to pre-IPO startups by funding employee stock options. In exchange, investors gain a portion of the future stock value.
You can avoid the accreditation hurdle by investing in the ARK Venture Fund, exclusively available at Titan to own pre-IPO companies. $500 minimum to invest.
However, Canva is not in the portfolio as of October 2022.
Check out our list of the best pre-IPO investing platforms for current platforms that may have shares available.
Keep in mind that Canva is an Australian company and operates under local laws, which may impact U.S. availability.
2. Buy Canva stock after the Canva IPO
Most investors are not eligible for pre-IPO shares, and getting allocations in any IPO is challenging.
So the best chance of owning Canva stock is to wait for the IPO and buy it after.
This is not the news most investors want to hear, but it’s the reality.
In many cases, the stock IPO rises in early trading and during the days following the IPO. However, prices often fall months after the IPO.
Therefore, you may find discounted opportunities to own Canva stock after the IPO.
3. Buy Canva stock during the Canva IPO through a broker
Those interested in investing in the IPO can look to several online brokers that offer free IPO investing to retail investors.
Here’s a list of the top brokers for IPO investing.
Large brokers such as Fidelity and Charles Schwab sometimes receive IPO shares but often distribute them to their wealthiest clients.
However, brokers such as TradeStation, Robinhood, and SoFi now offer the chance to acquire IPO shares to all customers.
These more retail-friendly brokers now compete for IPO shares. Typically only one will get exclusive IPO access to high-demand deals.
If your broker offers IPO access, join the email and text alerts for upcoming IPOs. There are no guarantees you’ll receive shares, but shares may be worth pursuing for some deals.
4. Participate in the Directed Share Program (If Available)
Another possibility (far from a certainty) is a directed share program.
When companies file their S-1 SEC filing (to begin the IPO process), they sometimes include a directed share program for executives, affiliates, and others who helped it grow.
Canva can attribute success to its monthly paying customers. As such, the company may offer IPO shares to customers.
This has happened before.
Uber offered shares to drivers that completed a certain number of trips.
GoPro offered shares to its email list.
Airbnb offered IPO shares to hosts.
Considering Canva’s recurring revenue model and engaged user base, it would be a nice and reasonable perk to offer its customers.
If you’re a paying customer, monitor your Canva emails as the Canva IPO approaches. May get a shot at IPO shares.
Bookmark this page for more information as the IPO approaches.
When companies deploy directed share programs, customers will get an email and be asked to open an account with whichever broker got the deal. So unless you already have an account with that broker, you’ll need to open a new account.
Then carefully follow the instructions outlined in the communications. If you don’t pay attention, you can miss out on shares.
Conclusion
Investors get excited when they identify companies riding extraordinary macroeconomic trends (in this case, visual communication). This can lead us to private companies positioning to profit from massive opportunities.
Buying the stock early on can often prove difficult for retail investors.
Though pre-IPO investing platforms have opened more opportunities, private equity investing is still primarily reserved for the ultra-wealthy, requiring millions to invest in seed and early funding rounds for disruptive companies.
So if you decide to pursue IPO shares or early equity, maintain reasonable expectations. It will be difficult acquiring Canva stock before or during the Canva IPO.
Waiting until after the IPO is sometimes a way to buy discounted shares.
However, if you identify several favorite IPO companies, you may eventually be able to invest in some of your target companies.
If Canva stock is on your acquisition list, good luck. Invest in pre-IPO and IPO companies with caution.
* Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long ABNB, RIVN, BEN, TROW.
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