Canva is a graphic design platform that allows users to create professional-looking designs without any prior experience. The platform is used by millions of people around the world, and it is growing rapidly. Canva stock is a popular investment opportunity, but it can be tricky to know how to buy it before the company goes public. In this blog post, we will walk you through the different ways to buy Canva stock before its IPO and help you decide which option is right for you.
Who Owns Canva:
Canva’s ownership is concentrated among its founders and a mix of early employees and private equity investors. Here’s a breakdown:
Founders: CEO Melanie Perkins and COO Cliff Obrecht, each hold an estimated 18% stake in the company. Cameron Adams, another co-founder, owns about 9%.
Investors: The remaining approximately 55% of Canva is owned by a combination of early employees and private equity investors. Notable investors include Bob Iger, Franklin Templeton, Sequoia Capital, T. Rowe Price, and Blackbird Ventures, among others. Of the 45 investors in Canva, 42 are institutional, and three are angel investors, highlighting the broad and diverse backing that supports Canva’s growth and expansion in the digital design market.
Why is Canva a Popular Investment Opportunity?
Canva is a popular investment opportunity because it is a fast-growing company with a large addressable market. The company is also well-positioned to benefit from the continued growth of the digital economy.
Canva, a graphic design platform, has seen significant growth in revenue over the past six months. As of October 2023, they reported an annualized revenue run rate of $1.68 billion, up from $1.4 billion. Canva has amassed an impressive user base of 149 million monthly users and 16 million paying subscribers, with an additional 66 million users added in the past year.
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However, Canva is still a private company, which means it is not publicly traded and can’t be purchased through a brokerage account. Despite this, you can still invest in Canva today, although it is not expected to become a publicly traded company until at least 2025.
How to buy Canva stock?
There are two main ways to buy Canva stock before its IPO:
1. Through a pre-IPO investing platform:
Pre-IPO investing platforms allow investors to buy shares of companies that are not yet publicly traded. There are a number of different pre-IPO investing platforms available, so it is important to do your research before choosing one.
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2. Through a fund that invests in pre-IPO companies:
There are also a number of funds that invest in pre-IPO companies. These funds can be a good way to gain exposure to Canva stock without having to go through the process of buying shares directly.
Which Option is Right for you?
The best way to buy Canva stock for you will depend on your individual investment goals and risk tolerance. If you are looking for a more direct investment, you may want to consider buying shares through a pre-IPO investing platform. However, if you are looking for a more hands-off approach, you may want to consider investing in a fund that invests in pre-IPO companies.
Main Competitors of Canva:
Canva faces significant competition in the graphic design industry. Below are the major competitors of Canva in the design sector.
1. Adobe (ADBE: NSD):
As a titan in the digital design space, Adobe offers a suite of products that cater to professional designers and creators. With applications like Photoshop, Illustrator, and InDesign, Adobe serves a diverse clientele ranging from graphic designers to digital marketers, presenting a direct challenge to Canva’s user-friendly platform.
2. Autodesk (ADSK: NSD):
Autodesk is primarily known for its software in architecture, engineering, and construction. However, it also offers graphic design tools like AutoCAD and 3ds Max. These tools offer advanced features that appeal to professionals, positioning Autodesk as a competitor in the broader design market that Canva is attempting to democratize.
Risks Considerations Before Investing in Canva stock:
Investing in pre-IPO companies is a risky investment. These companies are not yet publicly traded, so there is less information available about them and their financial performance. There is also a risk that the company may not go public as expected. If you are considering buying Canva stock before its IPO, it is important to do your research and understand the risks involved. You should also be prepared to hold the stock for the long term, as it may take some time for the company’s full value to be realized.
Conclusion:
Canva stock is a popular investment opportunity, but it can be tricky to know how to buy it before the company goes public. In this blog post, we have walked you through the different ways to buy Canva stock before its IPO and helped you decide which option is right for you. Once Canva goes public, you will also be able to buy shares through a brokerage account.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
