👉 Background: Canva is the Aussie tech decacorn that makes photo editing and design a piece of cake. Things have been pretty good for ol' Canva, which hit a $55 billion valuation last September.

👉  What happened: Earlier this year, Canva investor Franklin Templeton reviewed its investment... and decided it wasn't actually worth what it initially thought. So, it cut the value of its investment by a third ✂️.

👉 What else: Franklin Templeton has cut the value of its shareholding in Canva AGAIN, meaning it's down 60% in less than six months. These re-valuations by 'crossover funds' suggest Canva's actual value is closer to $23 billion.

🔔 What's the key learning?

💡 Crossover funds are investment funds that invest in both publicly traded companies and privately held companies.

💡 Companies are waiting longer to go public these days, so these crossover investors purchase big stakes in growing business pre-IPO... and then reap the gains when the company goes public. In fact, in 2020, nearly 75% of IPOs included crossover investment in pre-IPO rounds.

💡 These funds have helped push valuations up to astronomical levels. And we know that the share price of tech stocks have dropped significantly on the share market... so now, crossover funds are starting to re-evaluate their private companies (like Canva) too.