Canva Acquisitions: What Melanie Perkins Looks For

Canva's Growth, Fundraising, and Charitable Giving

Canva, a design software startup, has recently garnered significant attention. The company successfully secured $200 million in funding, resulting in a $40 billion valuation. Notably, co-founders Melanie Perkins and Cliff Obrecht committed a substantial portion of their equity – approximately $13 billion – to philanthropic endeavors via the Canva Foundation.

Insights from TechCrunch Disrupt 2021

A discussion with Perkins at TechCrunch Disrupt 2021 explored her approach to fundraising, the criteria for potential acquisitions, the impressive expansion of Canva’s user base (both free and paid), and the true meaning of operating as a “mission-driven company.”

The Charitable Donation Explained

Perkins clarified that the $13 billion donation represented the overwhelming majority – around 30% – of her and Obrecht’s equity in the company. This is a considerable equity allocation, particularly for founders at a growth stage who have completed numerous funding rounds. Perkins detailed how the company strategically approached fundraising with a priority on equity preservation.

The company is currently on track to achieve $1 billion in annual revenue, lessening the immediate need for additional capital. However, Perkins emphasized the importance of securing resources to ensure continued progress towards ambitious goals, even in unforeseen circumstances.

Future Plans and Expansion

Canva intends to utilize the new funding to double its current workforce of 2,000 employees. The company is also actively exploring acquisition opportunities, having already completed five acquisitions to date.

While specific targets remain undisclosed, Perkins outlined the qualities she seeks in potential acquisitions. She distinguished between companies focused on user delight and those prioritizing hierarchy and structure, emphasizing the importance of a dedication to delivering genuine value.

The Importance of Mission Alignment

Mission alignment is a critical factor in Canva’s acquisition strategy. With the overarching goal of empowering global design access and ultimately becoming a highly valuable company, any organization that can accelerate Canva’s progress towards these objectives is of particular interest.

Scaling from B2C to B2B

Canva’s growth trajectory has been remarkable. The company initially launched a free product, subsequently introducing a Pro subscription ($9.99/year in the U.S.), followed by Pro Teams and an enterprise-level offering.

Currently, over 500,000 teams are paying Canva subscribers, demonstrating a successful transition from a business-to-consumer (B2C) to a business-to-business (B2B) model.

The Secret to Canva's Staggering Growth

Perkins attributed Canva’s substantial growth to several factors, extending beyond pricing and packaging strategies. A key element is a unified team focused on a shared mission.

Defining a "Mission-Driven" Company

Perkins explained that being “mission-driven” isn’t merely a slogan. She illustrated this with a practical example: quarterly company-wide events where employees share their five-year visions for their respective departments, features, or products.

The purpose of these events is to understand employee aspirations. The team then collaborates to align these visions and chart a collective course, breaking down larger goals into smaller, attainable objectives.

https://www.youtube.com/watch?v=Wke1swjXYI8