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Canva: How a School Yearbook Startup Became a Global Design Business

Canva: How a School Yearbook Startup Became a Global Design Business

Margrét Gunnarsdóttir 100 23 Oct 2026

There is no single “best” startup: success depends on what a company set out to do, how it grew, and whether it solved a real problem for customers. Canva is a useful example of a startup that turned a small, practical idea into a widely used software business.

It began with yearbooks, not a design revolution

Melanie Perkins and Cliff Obrecht started the school yearbook business Fusion Books in Australia in 2007. They saw that producing a yearbook often meant wrestling with complicated desktop software and coordinating work across students and teachers. Their early service let people create yearbooks online, making the process more approachable.

That experience pointed to a bigger opportunity: if people could design a yearbook in a browser, perhaps they could make other everyday visual materials there too. Perkins and Obrecht, later joined by co-founder Cameron Adams, launched Canva in 2013.

Making design approachable for more people

Canva’s central product idea was straightforward: give people a browser-based online design platform where they could build presentations, posters, invitations, social posts, and other visual content without first learning professional design software. Instead of starting with a blank page and a dense set of controls, users could choose a layout, add their own text and images, and adjust the result.

This approach was aimed at non-designer users—small-business owners, students, teachers, marketers, and anyone who needed a decent-looking design without hiring a specialist. The template-based editor lowered the effort required to get started, while still leaving room to customize a finished design.

A business model built around a broad entry point

Canva grew with a freemium business model: people could use many core features at no cost, while paid plans offered additional tools, assets, storage, and capabilities for individuals and teams. This made it possible for someone to try the product for a small task before deciding whether a subscription was worth paying for.

That model suited a product whose potential audience was unusually broad. A design tool used occasionally by one person might not justify a complicated sales process. But if the free version became part of a student’s, creator’s, or small company’s regular workflow, paid features could become valuable as needs expanded.

Growth through everyday use

Canva’s expansion was not based only on adding more templates. The company developed features for people working together, including team collaboration tools, and broadened the kinds of content users could create. The product could serve an individual making a birthday invitation and a team preparing a presentation, while keeping the basic interaction familiar.

The company also pursued global expansion, making its product available to users across many countries and languages. That mattered because a browser-based tool can reach people far beyond its original home market, but only if the experience, content, and support make sense to those users.

What other founders can take from Canva’s story

  • Start with a specific frustration. Canva’s roots were in the concrete difficulty of making school yearbooks, not a vague ambition to “change design.”
  • Learn from the first product. Fusion Books helped its founders understand the workflow and the people who would later benefit from a broader tool.
  • Reduce the first-use hurdle. Templates and a simple starting point helped people get a result before they needed to understand every feature.
  • Let customer needs widen the product. A tool can grow into new use cases when its core experience remains recognizable.
  • Match the revenue model to how people adopt the product. A free entry point can make sense when users need to experience the value before paying.

Canva’s story is not a guarantee that every startup should use templates, subscriptions, or a freemium plan. Its more durable lesson is to look closely at a real task people already struggle with, make the first useful outcome easier to reach, and build outward from what customers actually do.


Margrét Gunnarsdóttir

Head of Corporate Banking

I am the Head of Corporate Banking at Íslandsbanki, Reykjavík, with 15 years of experience in corporate banking and credit. I graduated from Reykjavik University with a BS in Business Administration and completed an MS in Finance at the University of Iceland. I am originally from Garðabær, Capital Region. Outside work I enjoy reading crime novels and singing in a choir.


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