Just one month after raising $200 million, Canva has put its new cash in play by taking the next step in its product evolution: video. It will add video production to its suite of media and graphic design tools. These tools are meant to democratize advanced functionality for SMBs and brand marketers.
Before getting into the details of the newest video features, what is Canva? For those unfamiliar, it offers individual designers and SMBs no-code graphic design for marketing fare like logos & signage. We like to think of it as Adobe’s Creative Cloud for SMBs. Its low technical requirements are its edge.
Beyond non-technical folks, Canva accommodates non-creative folks. It has a massive library of design templates for the un-artistic among us. That can include SMBs, as noted, but also individuals in brand marketing departments that need a quick way to mock up website components or presentations.
Back to the video features, they take form in a new video editing tool. In keeping with Canva’s product orientation, the editor is accessible through a web interface, requiring no additional software downloads. And it syncs with the core product so users can import relevant design elements or branding.
In terms of UX, the editor is organized around industry-standard linear editing formats like Final Cut Pro and Adobe Premiere. But it’s a stripped-down version of these more advanced tools in keeping with Canva’s no-code approach. This makes it closer to iMovie, which is a simplified version of Final Cut Pro.
Its scene-focused interface meanwhile lets users break down videos into easy-to-manage clips — sort of like the familiar design language of a slide deck. They can trim scenes, manage audio tracks and add animated transitions. There’s also an ample library of video templates to seed any given project.
Notably, the video editor also has templates for popular output formats. In addition to traditional outputs like HD video for YouTube, it offers modern fare like TikTok clips or Twitch banners — all with the proper framing and timing. This is similar to the way that Canva offers perfectly-sized Zoom backdrops.
As for timing and availability, the video editor is available as part of Canva’s free tier. And just like the broader product’s freemium model, there are upsells in terms of features, quantity, and project size.
As noted, Canva’s democratization principles align well with SMBs, which account for a large share of its users. But it’s also begun to penetrate further into non-technical folks within larger enterprises, such as marketing departments. These fiefdoms can mimic SMB dynamics in some ways.
The appeal to such individuals includes collaborative functions. For example, once a designer creates something, it can then be available in Canva’s cloud for any skillset to modify on the fly. That could be everything from new-employee business cards to seasonal marketing campaigns.
Add up all of these user personas and Canva has a sizable large addressable market. Quantifying that a bit, it currently has 60 million monthly active users 500,000 of which are paid. The latter includes multi-seat licenses at companies like Salesforce, Marriott, PayPal, and American Airlines.
Part of this success is attributed to the fine line Canva walks in its freemium model. The challenge is to offer enough demonstrable value but not so much that you’re giving away the store. In its efforts to blitz-scale, Canva has prioritized value in its free version to gain traction and virality.
And it’s working… the company projects to hit a $1 billion revenue run rate by the end of 2021. We’ll keep a close eye as it nears that goal and puts its recent $200 million funding in play.