The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Canva Co-Founder, Cliff Obrecht on The Journey From 100 VC Rejections to a $40BN Company, Why Good Enough is Not Good Enough, The Secret to Hiring Non-Obvious Talent and Relationships to Money and Why They Are Giving Away Billions

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Jan 27, 2023

Cliff Obrecht, Co-founder and COO of Canva, shares his inspiring story of transforming rejection into success. He discusses overcoming over 100 VC rejections before scaling Canva to a $40 billion valuation. Cliff reveals the secret to hiring talent by considering 'distance traveled' and how he evolved his approach based on past mistakes. He also underscores the importance of relationships over wealth, emphasizing philanthropy and personal values. Tune in for insights on startup growth, talent acquisition, and redefining success.

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ANECDOTE

100 VC Rejections

Cliff Obrecht and Melanie Perkins's Canva was initially rejected by over 100 VCs.
Their persistence and a chance kite-surfing connection with Bill Tai eventually led to funding.

ADVICE

Fundraising Marathon

View fundraising as a marathon, not a sprint, and maintain persistence.
Be honest and keep your word; integrity builds trust over time.

INSIGHT

Distance Traveled Hiring

Look for "distance traveled" when hiring; prioritize candidates who've overcome significant challenges.
These individuals often possess exceptional drive and adaptability once they "figure out the game."

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The Daily Stoic

366 Meditations on Wisdom, Perseverance, and the Art of Living

Ryan Holiday

Stephen Hanselman

This book provides 366 meditations on Stoic wisdom, featuring new translations of passages from Epictetus, Marcus Aurelius, Seneca, and other Stoic philosophers. Each day, readers are presented with a Stoic lesson explained in modern language, along with advice on how to apply these lessons in everyday life. The book is organized temporally and thematically across the twelve months of the year, making it a daily resource for practicing Stoicism[4][5][6].

Working Backwards

Insights, Stories, and Secrets from Inside Amazon

Colin Bryar

Bill Carr

Working Backwards provides a detailed look at Amazon's approach to culture, leadership, and innovation. The book is written by Colin Bryar and Bill Carr, who collectively have 27 years of experience at Amazon. It outlines the company's 14 leadership principles and how they are applied in practice, focusing on customer obsession, long-term thinking, and operational excellence. The book is divided into two parts: the first part explains the leadership principles and practices, while the second part includes case studies on the development of products like Kindle, Amazon Prime, and Amazon Web Services. The authors provide practical steps and insights that can be applied to any business, regardless of size or industry[2][4][5].

Sapiens

A Brief History of Humankind

Yuval Noah Harari

This book surveys the history of humankind from the Stone Age to the 21st century, focusing on Homo sapiens. It divides human history into four major parts: the Cognitive Revolution, the Agricultural Revolution, the Unification of Humankind, and the Scientific Revolution. Harari argues that Homo sapiens dominate the world due to their unique ability to cooperate in large numbers through beliefs in imagined realities such as gods, nations, money, and human rights. The book also examines the impact of human activities on the global ecosystem and speculates on the future of humanity, including the potential for genetic engineering and non-organic life.

Cliff Obrecht is the Co-Founder & COO @ Canva, the free-to-use online graphic design tool that makes it easy for anyone to design anything from presentations to videos and social media. Cliff and Mel have scaled Canva to over 60 million monthly users, 2,000 employees, and 500,000 teams from companies like Intel and Zoom using Canva. During this incredible growth journey, they have raised over $580M with their last round valuing the company at over $40BN.

In Today's Episode with Cliff Obrecht

1.) From Teacher to Billionaire Tech Founder:

How did Keith make his way into the world of tech with his founding of FusionBooks? What did the process with FusionBooks teach him about how to run Canva?
How did the early fundraising days for Canva go? Why does Cliff think they got over 100 no's?
What are Cliff's biggest pieces of advice for founders today, not in Silicon Valley, looking to raise from Silicon Valley VCs?

2.) Scaling to $40BN: The Biggest Lessons:

What does Cliff mean when he says the secret to successful hiring is looking for "distance traveled"? How does he determine this in the interview process?
What have been some of the single biggest lessons in what it takes to acquire the best talent?
What are some of the biggest mistakes Cliff has made in talent acquisition? How has his process changed as a result?
What do Canva do to get the best operators as advisors in the company? How do they compensate these advisors? What does Cliff advise founders on how to do the same?

3.) The Art of Deal-Making:

How does Cliff think through what makes a "good deal"? How does he approach negotiation?
What are the biggest mistakes founders make when negotiating and doing deals?
What have been Cliff's biggest lessons on successful investor relations over the years?
How does Cliff and Canva approach acquisitions? What do they look for? What is their process? Why do most tech companies approach acquisitions the wrong way?

4.) Cliff Obrecht: Money, Fatherhood and Marriage:

How does Cliff analyze his relationship to money today? How much money is enough? How has his relationship to money changed over time?
Why have Cliff and Mel given away over $10BN to their foundation? Why is philanthropy so hard to do effectively?
Why would Cliff hate for his children to be brought up in excess wealth?
What does "great fatherhood" mean to Cliff? What are the most challenging aspects of parenting?
What are the secrets to a happy marriage? How does co-founding a company with your other half work well? How does it work poorly?