Most employees at the $40-billion online design and publishing platform Canva plan to use the proceeds they earned from selling shares to buy property or pay down mortgages, rather than invest in new start-ups, an online survey reveals.
Read: Canva HQ in Surry Hills Enters Exhibition Period for Planned $56 Million Transformation
A poll of 119 current and former staff found just 3 percent intend to start their own company with the cash windfall. The top response, from 53 percent of those surveyed on the anonymous workplace forum Blind, was to purchase a home or pay off an existing mortgage.
With the design unicorn headquartered in the expensive suburb of Surry Hills, the soaring cost of housing appears to be the main draw for employees cashing in a portion of their equity. The current (May 2023 – April 2024) median house price in Surry Hills is a lofty $2.23 million according to realestate.com.au.
Whilst Canva allowed staff to sell up to 20 percent of their shareholdings – a typical limit to keep them motivated before a public listing – the opportunity to get a foot on Sydney’s property ladder has proven irresistible. One respondent commented that whilst they would love to start a business, the funds wouldn’t stretch far enough in an overheated market for tech investment and talent.
Canva co-founder Cliff Obrecht acknowledged the company’s share sale was a “net positive” for the start-up ecosystem, even if much of the proceeds get ploughed into real estate rather than new ventures. “It’s definitely money being distributed and money breeds more opportunities,” he told a financial magazine.
Read: Searching for a Home in Surry Hills: Navigating the Challenging Rental Market
But in Surry Hills where the median house price tops $2.2 million, entrepreneurial dreams may have to be put on hold for Canva’s workforce. Securing housing appears the priority for now.
Published 9-May-2024
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