- Canva's cofounder and chief product officer, Cameron Adams, has reiterated confidence in his company's massive $3.2 billion valuation, saying the graphic-design startup has "underlying financial stability" that other big-money tech companies don't have.
- Investor confidence in unicorn startups has waned after the New York-based coworking startup WeWork went from a $47 billion valuation to talk of bankruptcy in just six weeks.
- But Adams told Business Insider that while WeWork had investor hype, Canva has the financial stability that is necessary to achieve long-term success.
- Adams added that the company had no plans for an initial public offering anytime soon, but he did not rule out the possibility for later.
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MELBOURNE, Australia — Canva's cofounder and chief product officer, Cameron Adams, has reiterated confidence in his company's massive $3.2 billion valuation, saying the graphic-design startup has "underlying financial stability" that other big-money tech companies lack.
Adams told Business Insider during an interview at the Startup Grind APAC Conference in Melbourne that his company's consistent track record justified the recent valuation spurred by a 125 million Australian dollar, or $85.2 million, funding round.
"That number definitely makes sense to us in terms of where our growth curve is, what we've got planned, our track record, everything that's in motion," Adams said. "Obviously we wouldn't negotiate to get that kind of valuation if it wasn't something that we believed in."
Still, investors are skeptical of the Sydney-born private business, which has been able to raise an impressive amount of capital since its founding in 2012. The company's valuation makes it a unicorn — a private company worth at least $1 billion — and its cofounder Melanie Perkins has embraced the term to describe her business.
Other noteworthy unicorns have included Uber, Airbnb, and Spotify, though Canva is one of the few to come out of Australia.
Investor confidence in unicorn startups has waned, however, after the New York-based coworking startup WeWork went from a $47 billion valuation to talk of bankruptcy in just six weeks. It was once the US's most valuable tech startup before a failed attempt at an initial public offering necessitated a bailout from its largest investor, SoftBank, just to stay afloat.
WeWork's quick rise and subsequent fall from grace do not appear to concern Adams, who says Canva is in a "much more stable position." While Adams said he was not well-versed in the specifics of WeWork's financial woes, he remained resolute that Canva would not meet the same fate.
"There seemed to be a level of hype that got people excited," he said of WeWork. "I think Canva is in a much more stable position, and we've demonstrated that to investors through our consistent growth over the years and we've been profitable for a while. We have underlying financial stability."
The company reported its first profit in 2017, generating 1.9 million Australian dollars in net profit on revenue totaling 25.1 million Australian dollars.
"I think the people that invest in us do a lot of due diligence," he said, adding: "They really do their homework and make sure it's a good investment to put their money into."
One mistake Canva hopes to avoid is rushing into a premature IPO.
"We're not planning one anytime soon," Adams said. "There's still plenty of time for that."
Read the original article on Insider