Canva drops US$7.1B in investor valuation

• Blackbird Ventures and Airtree reduced their valuation of Canva by 17% to US$34.9 billion.
• The company's internal valuation for employee share issuance also fell from US$38.9 billion to US$31 billion.
• Canva stated the downgrades reflect the high infrastructure costs required to support new artificial intelligence tools.

Canva saw its external valuation fall by US$7.1 billion amid rising artificial intelligence costs.

The adjustment lowers the design software provider's value to US$34.9 billion from US42 billion.

"Being private gives us the freedom to make big bets," said Canva co-founder Cliff Obrecht.

The firm stated its internal valuation also dropped to US$31 billion for employee share tax purposes.

Earlier in August, the organisation reduced its anticipated revenue growth forecast from 30% to 20%.

Investors noted that other software vendors face similar financial pressures regarding the rising expenses of new technology.