How Melanie Landed a Lead Investor to Raise a Seed Round for Canva

The journey of a thousand miles begins with a single step. But for many aspiring founders, that first step often feels like a daunting leap into the unknown. Fundraising, especially securing a lead investor, can feel like an insurmountable hurdle.

Yet, every success story starts somewhere, and Melanie Perkins, the co-founder of Canva, is the perfect example of how persistence, resourcefulness, and a little hustle can lead to incredible results.

In this blog post, we'll delve into Melanie's story. We’ll unpack the challenges she faced in finding a lead investor and the strategies she used to ultimately raise her seed round for Canva.

We'll also look at how tools like Score My Deck can empower you to follow in Melanie's footsteps and build a list of potential lead investors, and increase your chances of securing those investor meetings.

Canva’s Mission : From Yearbooks to Design Democratization

Melanie's entrepreneurial journey began in her native Perth, Australia. While still a student, she identified a gap in the design software market.

She quickly realized that existing options were complex and expensive, leaving many without the tools to bring their creative visions to life. While Canva's initial concept started with creating a user-friendly platform for yearbook design, Melanie's vision soon expanded to include a broader mission: to democratize design for everyone.

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Armed with a prototype and a desire to turn her vision into a reality, Melanie set her sights on securing funding. However, being in Perth presented a geographical challenge.

The world of venture capital revolved around Silicon Valley, and investors with experience in the design software space were concentrated there.

Undeterred, Melanie leveraged her network and got a ticket to attend a conference in Perth where Bill Tai, a prominent Silicon Valley investor, was speaking.

She loitered (as Melanie put it) in the hallways of the conference event long enough and grabbed a brief chat with him. She subsequently followed up with an email outlining her vision for Canva. Unfortunately, Bill's initial response was lukewarm. Location was a problem, he suggested she connect with him if she ever found herself in Silicon Valley.

Booked a Flight for a Random Coffee Chat in Silicon Valley

Knowing how important it was to find a strong lead investor, Melanie wasn't about to give up. She strategically followed up with Bill again, this time employing a touch of resourcefulness.

Although she wasn't actually planning a trip to Silicon Valley, she told Bill she would be in the area and requested a coffee meeting.

This strategic move bypassed the initial hurdle and secured her a chance to present her idea. She bought a plane ticket, booked a hotel and flew to California!

Investor Meeting Didn’t Go as Planned

The coffee meeting didn’t go as planned. Bill seemed rather disengaged, he played on his phone throughout Melanie's pitch. Dejected, she feared she had blown her chance. However, the story doesn't end there. Bill later surprised Melanie with an offer to invest, on one crucial condition.

She had to find a strong tech co-founder to build the platform.

I think this twist highlights a valuable lesson for founders: investors aren't just looking for a flashy pitch or a groundbreaking idea. While passion and vision are important, founders need to couple that with a practical plan that can be executed.

Bill recognized the potential in Melanie's vision but he needed to see a well-rounded team with the technical expertise to bring it to life.

Feedback : Get a CTO Co-Founder Before I Invest

Finding the right tech co-founder proved to be another challenge. Bill connected Melanie with Lars Rasmussen, co-founder of Google Maps. While the conversation was fruitful, the search continued. For an entire year, Melanie tirelessly pursued potential co-founders, facing constant rejections. This period of frustration could have easily derailed her momentum.

However, Melanie persevered, her unwavering belief in Canva fueled her determination.

Unexpected Connections and Strategic Networking

It was during this time that Melanie attended a kite-surfing conference (yes, you read that right!). This seemingly unrelated event turned out to be a turning point.

Through conversations with other entrepreneurs, she learned about Cameron Adams, a potential tech co-founder who perfectly aligned with Canva's needs.

This further emphasizes the importance of networking, even in unexpected places. Building relationships and fostering connections within your industry, and even outside of it, can lead to serendipitous opportunities.

Closing a Seed Round : Tenacity and Resourcefulness

With Cameron on board, Canva finally had the missing piece of the puzzle. Bill Tai, impressed by Melanie's tenacity and the newly formed team, came through on his investment offer.

This initial seed funding, coupled with a $1.4 million matching grant from the Australian government, provided the resources Canva needed to take flight.

Connecting Canva's Story to Your Fundraising Journey

Melanie's story highlights the crucial role a well researched investor plays in closing a funding round.

The approach of finding an investor who believed in Melanie’s vision was key. Her willingness to book a flight to meet Bill Tai in Silicon Valley with a carefully prepared approach significantly increased her chances of getting his attention from the get-go.

This is where tools like Score My Deck come in. Score My Deck acts as your fundraising co-pilot, guiding you through the process of de-risking your investment opportunity by pre-empting all the major concerns investors will have.

Carefully going through those concerns and using the answers in Score My Deck to address each issue is the most efficient way to prepare for investor meetings.

Beyond the Pitch Deck: Building Trust and Persistence

While a stellar pitch deck is essential, securing a lead investor requires more than just a presentation. Melanie's story exemplifies the importance of building trust and demonstrating unwavering persistence.

Here are some actionable tips you can incorporate into your fundraising strategy:

Do Your Research: Target investors who share your vision and have a track record of investing in your industry. Use Score My Deck to find those lead investors. A simple question like “Show me 10 lead investors in my vertical writing $150k Checks”
Build Relationships: Networking is key. Attend industry events, connect with investors online, and leverage your network for introductions. We talk about how Michia closed his $250,000 pre-seed round in 3 weeks
Be Persistent (But Not Pesky): Follow up with potential investors without being intrusive. Demonstrate your passion and commitment to your idea.
Be Prepared to Pivot: Be open to feedback and adapt your pitch based on investor insights. Use investor feedback to write better pitch decks

The Road to Success is Rarely Straight: Embrace the Challenges

Melanie's journey to securing funding for Canva wasn't without its setbacks. From initial rejections to the year-long search for a co-founder, she faced tons of challenges.

However, the belief she had in her vision and her relentless pursuit of her goals ultimately led to closing her seed round.

Remember, the path to fundraising is rarely a straight line. There will be rejections and moments of doubt.

Embrace these challenges as learning opportunities and use them to refine your pitch and strengthen your resolve.

Conclusion : Melanie’s Hustle Helped Close Canva’s Seed Round

Canva's story is a testament to the power of a compelling vision, a strong team, and unwavering perseverance.

By learning from Melanie's experience and leveraging tools like Score My Deck, you can increase your chances of securing valuable investor meetings, and ultimately, close your startup’s funding round.

So, are you ready to take your first step towards building the next big thing?

Get started on your pitch deck today and remember, with a little bit of hustle, you too can turn your vision into a success story.

Score My Deck: Your Fundraising Co-Pilot

Score My Deck empowers early-stage founders with the tools and insights they need to navigate the fundraising journey with confidence.

Our platform provides a comprehensive suite of features to help you:

Craft a Compelling Pitch Deck: Receive personalized feedback and expert advice on your pitch deck content, structure and go-to-market strategy.
Identify Lead Investors: Utilize our investor database to target the right lead investors for your startup.
Prepare for Investor Meetings: Practise your pitch and receive investor feedback to ensure you deliver a confident and impactful investment opportunity.