Airtree Ventures has secured approval from limited partners to extend the life of its first fund, a move that preserves its longstanding investment in design software company Canva. The $60 million fund was raised in 2014 and had approached the end of its original investment period. The decision ends an immediate standoff with investors but imposes a clear exit deadline of July 2028 for remaining holdings.
Investor Approval and Revised Terms
The special resolution passed after investors representing more than 75 per cent of committed capital voted in favor of the extension. Under the revised arrangement, the fund will now close on July 15, 2028, giving Airtree about 22 months to exit its remaining positions. Airtree also agreed to waive its management fees for 12 months from July 15 next year, after previously charging an annual fee equal to 2.5 per cent of total fund commitments.
A Contentious Path to Approval
Airtree originally sought a response from investors by a Monday deadline, but resistance prompted an emergency meeting where Craig Blair made his case. Attendees said Blair described Canva's control over the share register as limiting Airtree's ability to sell down, while Airtree denied he used the word 'stranglehold'. The amended deed removed previous rules that allowed up to three one-year extensions, replacing them with a fixed close date.
Canva Remains the Core Asset
Airtree was among the early investors in Canva, joining its $6 million Series A round in 2015. The venture firm sold down part of its Canva stake in 2024, returning 1.4 times Fund I's total invested capital while retaining the majority of its holding. Canva's private market valuation has since declined, with Airtree and Blackbird Ventures marking down their shares by around 17 per cent, although Canva reported $3.5 billion in revenue and 260 million monthly users in 2025.
Investor Frustration and Internal Tension
The extension follows a period of investor discontent after more than 12 years without a full distribution. Some limited partners argued they should have received more returns and questioned the justification for keeping funds locked up. The process also exposed a rift between founding partners Craig Blair and Daniel Petre, with Petre publicly criticizing the firm's handling of its Canva stake and saying Airtree offered only one sell-down opportunity in 2023.
Market Context and Firm Growth
The decision comes amid a strong venture capital market, with KPMG reporting US$227.4 billion in global venture investment during the second quarter of 2026. Airtree has expanded well beyond its initial fund, with its latest Fund V totaling $650 million across a $250 million seed fund and a $400 million growth fund. The firm says its next step is to reconvene the Fund I Limited Partnership Advisory Committee to work through detailed exit plans for all remaining positions.
The approved extension gives Airtree a defined window to deliver liquidity to its earliest backers while retaining exposure to Canva. Although the vote resolves the immediate governance dispute, the episode highlights the difficulties venture firms face when flagship private holdings remain illiquid beyond traditional fund timelines. The coming 22 months will be critical for Airtree to demonstrate that its patient investors were right to grant more time.
Source: Financial Review