TLDR:
– Big name investors Goldman Sachs and the Ontario Teachers Pension Plan have invested in design software firm Canva, leading some early investors to question whether the deal undervalues the company.
– Canva’s upcoming secondary share sale is priced at a 13x multiple of its annual recurring revenue (ARR), which some investors believe is too low.
Goldman Sachs and the Ontario Teachers Pension Plan are among the new investors in design software firm Canva, which is set to hold a $US1.5 billion secondary share sale. However, some early investors have expressed concerns that the deal undervalues the company. Canva’s ARR hit $US2 billion in December, meaning the sale will be done at a 13x multiple, the lowest in a Canva raising since 2021. Investors believed that a valuation of $US30-34 billion would have been more reasonable in current conditions. However, most investors are willing to sell some shares now and keep most for the upcoming IPO, expected next year. Canva declined to comment on its valuation process.
