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<a href="http://www.businessinsider.in/The-30-startups-whose-value-ballooned-the-most-during-the-steroid-era-of-funding/articleshow/52284402.cms">Valuation</a> matters to entrepreneurs since it decides the share of the company they need to offer away to an investor in return for cash. At the early stage the estimation of the company is near zero, however the <keyword id="51393" type="UNKNOWN" weightage="20" keywordseo="valuation">valuation</keyword> must be a considerable measure higher than that. Why? Suppose you are searching for a seed investment of around $200,000 in return for around 15% of your company. Run of the mill bargain. Your pre-cash valuation will be $3 million. This does not imply that your company is worth $3 million at this point. You most likely couldn't offer it for that sum. Valuation at the early stages is a great deal about the growth potential, instead of the present quality. 
 Without years of financial data to depend on, new companies and their investors have needed to depend on more imaginative approaches to substitute for these inputs. More or less, the process goes back to measuring a touch of fundamental finance: risk versus reward. In <keyword id="138263" type="UNKNOWN" weightage="20" keywordseo="startup">startup</keyword> phrasing, it's traction versus market size. 
 
What convinces the <a href="http://www.businessinsider.in/Heres-why-investing-in-China-is-crazy-literally-crazy/articleshow/53389000.cms">investor</a>? 
 
The greatest determinant of your startup's valuation are the market powers of the business and sector in which it plays, which incorporates the parity (or irregularity) between demand and supply of money, the recency and size of recent exits, the eagerness for an investor to pay a premium to get into an arrangement, and the level of desperation of an entrepreneur looking for funds. Let’s break it down in two main points: 
 
Traction: Everything that you could demonstrate an investor, traction is the main thing that will persuade them. The purpose of a company's presence is to get clients, and if the investor sees clients – getting funds as easy as buying a candy. Things being what they are, how many clients? In the event that every single other thing are not going to support you, but rather you have 100,000 users, you have a decent shot at raising $1 million. 
 
Revenue: Revenues are more imperative for the B-to-B startups than consumer startups. Revenues make the organization simpler to value. For consumer startups having revenue may bring down the valuation, regardless of the fact that they’re for a short time. There is a justifiable reason behind it. In the event that you are charging clients, you are going to become slower. Moderate development implies less cash over a more extended timeframe. Lower valuation. This may appear to be nonsensical on the grounds that the presence of revenue means the startup is nearer to really profiting. Be that as it may, startups are not just about profiting, it is about developing quick while profiting. On the off chance that the development is not quick, then we are taking a gander at a customary cash making business. 
 
How to Calculate Valuation of an early stage startup? 
 
You have to put on the cap of your investor in setting valuation to get them amped up for your startup versus several different startups they see every year. 
Investors are searching for that next 10x return opportunity, so ensure your five year estimated financials will develop sufficiently substantial in that time period to give them a 10x return. 
 
Start with making a list of your assets like Software or Product, Cash Flow, Customers/Users Partnerships etc. 
 
Choose a method 
 
· <keyword id="3517754" type="UNKNOWN" weightage="20" keywordseo="Berkus-Method">Berkus Method</keyword>: To start with, Berkus says that financial analysts ought to trust that the company can possibly hit $20 million or more in revenues by the fifth year of operation. At that point, he applies a scale to five parts of a startup, rating each at up to $500,000. 
 
1. Sound Idea 
2. Prototype 
3. Quality Management Team 
4. Strategic relationships 
5. Product Rollout or Sales 
 
Since you’re pre-revenue, the fifth component doesn't matter. Subsequently, the greatest value of your organization using this process is $2 million. 
 
· <keyword id="3517753" type="UNKNOWN" weightage="20" keywordseo="The-Risk-Factor-Summation-Method">The Risk Factor Summation Method</keyword>: The Risk Factor Summation Method considers a much more extensive arrangement of components in deciding the pre-money valuation of pre-revenue startups. This technique might be less helpful as a stand-alone valuation strategy for investors, yet I believe that this strategy is ought to be one of a few strategies utilized by early stage investors to set up pre-money valuation, since it strengths investors to consider external components. While this technique surely considers the level of management risk, it likewise prompts the client to survey other risk sorts, including: 
 
1. Management 
2. Stage of the business 
3. Legislation/Political risk 
4. Manufacturing risk 
5. Sales and marketing risk 
6. Funding/capital raising risk 
7. Competition risk 
8. Technology risk 
9. Litigation risk 
10. International risk 
11. Reputation risk 
12. Potential lucrative exit 
 
Each risk is assessed, as follows: 
++: + $500,000 
+: + $250,000 
0: 0 
- : -$250,000 
--: -$500,000 
 
Let’s say the pre-money valuation of your company is $2 million. After calculations if you get 4 +, one –, one - -2 and six 0s. Add $250,000 to your pre-valuation. 
Again, there are many methods to valuate an early stage startup. These methods are more theoretical and call for every external and internal factor. 
 
Much like craftsmen, entrepreneurs need to use imagination in valuing their startup. Customary ways to deal with valuation taking into account book values and P/E ratios are likened to painting by numbers. In the event that you need your startup to be a showstopper, you'll have to utilize the right half of your mind as much as your left to decide value.

Startup Valuation: Why it matters & How to calculate it

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Brian Ach/Getty</div></div></div>For awhile, the media, investors, and potential hires have been reading private company markdowns like tea leaves.Mutual funds like Fidelity and T. Rowe Price invested in private companies like Uber, Airbnb, Snapchat, and Dropbox - then recalibrated their valuations based on market conditions. The <a href="http://www.wsj.com/articles/fidelity-marks-down-startups-including-dropbox-zenefits-1459346847">monthly or quarterly evaluations</a> have been watched closely by the tech community as a gauge of how well a startup might be doing.Uber, for example, has seen its share value rise an average of 214% across the mutual funds, according to the <a href="http://graphics.wsj.com/tech-startup-stocks-to-watch/">Wall Street Journal's stock tracker</a>. Dropbox, on the other hand, is only up 17% overall across all funds since 2013, below the NASDAQ's performance. In the last month, <a href="http://www.wsj.com/articles/fidelity-marks-down-startups-including-dropbox-zenefits-1459346847">Fidelity wiped down the storage startup another 20%</a>. Lately though, there's been an increasing backlash against using mutual fund numbers to judge startup valuations.In an appearance on Bloomberg TV, Y Combinator president Sam Altman said that the whole back-and-forth and obsession over these markdowns and valuations is "a dumb conversation." He's tried asking Fidelity to buy marked-down Dropbox shares from them, and the funds wouldn't sell at the new lower prices."It's unclear to me if they even believe the markdowns," Altman said.Dropbox's CEO Drew Houston told Bloomberg TV that the company doesn't pay much attention to it at all. If he knew that his company would get torn through the headlines like it has as a result of taking mutual fund money, he says he would do it again. Both Altman and Houston reiterated that it's more important to focus on the business fundamentals and investing in growth than to worry about what's happening in the markets and the price tag people are sticking on your company."We try not to get fixated on what's the valuation right now," Houston said. "The most important thing we can do is build a great company." <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/incredible-augmented-reality-headset-2016-3">The things you can see through this Florida startup's augmented reality headset will blow your mind</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="tzNDNpMTE6DOA1pCXtOejqiHr7XmplPY" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

The back-and-forth over startup valuations and markdowns is 'a dumb conversation,' says YC president

<div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image on-image"><a title_source="Matt Rosoff Business Insider" title_caption="A raging party thrown by Spotify." class="zoomin" href="http://static3.businessinsider.com/image/4e7cd8d6eab8eaa31100001a-960/janes2.jpg"></a><a href="&lt;a href="></a>"&gt;Matt Rosoff Business InsiderA raging party thrown by Spotify.</div></div></div>Music streaming company <a href="http://online.wsj.com/news/article_email/SB10001424052702304791704579212152163448852-lMyQjAxMTAzMDIwMTEyNDEyWj">Spotify just raised $250 million</a> at a $4 billion valuation. 
That sounds high, but $4 billion seems to be the magic number for today's biggest startups. Recent valuations have dwarfed Tumblr and Instagram's once-massive $1 billion buyouts.
Uber received a $3 - 4 billion valuation in August when it <a href="http://blog.uber.com/bits-and-atoms">raised a $258 million round</a> of financing led by Google Ventures. 
Pinterest raised at a <a href="http://allthingsd.com/20131023/pinterest-does-another-massive-funding-225-million-at-3-8-billion-valuation/">$3.8 valuation in October</a>. A few weeks ago, <a href="http://allthingsd.com/20131025/snapchat-is-mulling-another-huge-round-at-a-3-5-billion-valuation/">Snapchat was mulling over a new round</a> at a similar valuation. Evernote hasn't raised a round in over a year, but it's likely near the $3 - 4 billion valuation range by now. Dropbox doubled the magic $4 billion figure and is raising at an $8 billion+ valuation. Today, Spotify joined the $4 billion club.
Why have valuations gotten so much higher in recent months?
First, there's a lot of private money out there, and investors need to invest in something. When late-stage VCs stumble upon a <keyword id="138263" type="UNKNOWN" weightage="60" keywordseo="startup">startup</keyword> that's could become a category leader, they're willing to throw tons of cash at it.
Uber, for example, is the category leader in on-demand transportation and logistics. Pinterest is winning in the visual retail discovery market.
"When one of the big players emerge [in a market], then you have these big firms that need to deploy a lot of capital," says RRE investor Steve Schlafman. "A lot of these companies don't need to raise more money...the only way these companies are going to raise more money is on a much higher multiple. But I wouldn't call it irrational exuberance. These are big spaces with likely one or two winners (transportation, music, discovery, messaging)."
It's important to note that a lot of high-valuation deals give investors preferred stock, not common stock. That means their investments are much less risky. Even if it gets bought for less than its official valuation, the preferred stock still gets bought out in full - sometimes at a premium or multiple. If a startup's valuation increases, both preferred stock investors and the founders win big. Even if a startup goes to zero, preferred stock holders get their money back first - if there is any left - while a founder with common stock might lose everything. 
It's also important to remember that investors don't want marginal wins. They're after home runs, so it's in their best interest to keep promising startups private and flip them later for higher returns. Investors put money in Instagram at a $500 million valuation, for example, probably didn't anticipate the company selling for a smaller, 2X multiple. 
To prevent startups from getting acquired early, some investors let founders pocket cash during fundraises. Founders are able to take a few million dollars off the table and become instantly rich, just like they would if they sold the company. Eliminating the financial lure of an acquisition keeps entrepreneurs focused on building longer-term businesses. 
<keyword id="6358096" type="UNKNOWN" weightage="60" keywordseo="Snapchat">Snapchat</keyword>'s co-founders, for example, reportedly pocketed $10 million each during their last round of financing. They're rumored to be taking much more than that off the next round of financing - whenever that officially closes.
Some of the valuations are the result of hype though. And sometimes aggressive valuations can backfire. 
"I think later stage investors are analyzing growth rates and size and using Facebook (and other public stocks) as a comp on valuation," one industry insider says. "If Facebook stock is high, than those startups will get a high price if they continue to exceed expectations. This can be tricky though, as we saw with [recent] late stage deals ... When growth slows down, the pain is harsh and swift." 
<blockquote class="twitter-tweet" lang="en">
Instagram would be worth $5B+ today. It buttressed FB stock &amp; gave it's mobile strategy legs. Insanely smart,cheap acquisition by Zuck.
- Shervin Pishevar (@shervin) <a href="https://twitter.com/shervin/statuses/400728375930548225">November 13, 2013</a></blockquote>

$4 Billion Is The New $1 Billion In Startups

<div class="image-container float_right" style="width:400px"><div class="image"></div>Alleyway next to LivingSocial's headquarters.</div>As startup prices soared in the runup to last year's Facebook IPO, entrepreneurs, investors, and tech observers sometimes griped about lofty valuations.
Just mention Foursquare, say, or LivingSocial, and they'd go off.
These are tech companies that snagged a lot of press and tens (or hundreds) of millions of dollars before solidifying their business models. Investors say they're worth tons of money—but in the end, that's a gamble, and the companies may actually be worth nothing.
After a few years of massive hype in the startup sector, absurd-sounding valuations are starting to correct themselves. <keyword id="6362513" type="ORGANIZATION" weightage="60" keywordseo="Startups">Startups</keyword> are confronting the prospect of raising "<keyword id="1765386" type="UNKNOWN" weightage="60" keywordseo="Down-Rounds">down rounds</keyword>" from investors—or rounds of financing that value the companies at less than the previous round. 
LivingSocial, for example, was once valued at $5.7 billion; it's now worth a quarter of that, or less, depending on whom you ask.
But more often, down rounds happen at a far earlier stage, a result of <a href="http://www.businessinsider.com/how-paul-grahams-made-y-combinator-high-valuations-2012-7">too-lofty valuations assigned in initial financings.</a> 
What happens when companies that were once worth billions of dollars suddenly find themselves worth much, much less? And why were they ever valued that high in the first place?
Down rounds can bring in much-needed cash that can give a company time to find a business model or turn things around. But they create complications for both past and future investors. And they are one of the most demoralizing things that can happen to a startup.
<h3 class="p1">For a while, it was cool to start a company, and investors wanted to find the next Facebook.</h3>
Over the past few years, a lot of people have tried to become entrepreneurs. 
People who dreamt of running their own businesses left their 9-to-5 jobs in droves and convinced investors to throw millions of dollars behind their ideas.
Many of the businesses started were consumer-facing—things like photo apps and social networks that require a lot of people to use them to survive. They weren't transactional businesses that make money when they sell something. And that was okay—a lot of investors encouraged entrepreneurs to build up their user bases before trying to generate revenue.
But when some of the biggest consumer Internet companies, like Groupon, Zynga, and Facebook, went public, their stock prices got slashed. Suddenly, these incredibly valuable companies weren't worth as much money as the tech world initially thought.
<h3 class="p1">Now, investors are spooked and they're closing their wallets.</h3>
Because of the setbacks larger tech companies are facing, new companies are having a tough time raising money. Investors are closing their wallets, and startups are struggling to find the cash needed to keep themselves afloat while they figure out a way to make money. 
This concept of investors getting pickier about the companies they fund is sometimes called the Series A crunch. Series A rounds of financing are usually the first true equity investments in a company.
The problem is that many startups get their seed funding as convertible debt from angel investors, with terms that essentially set a price on the company. Venture capitalists may be willing to invest—just not at that price. If they come in with an offer below that price, then the angel investors get rewarded with more of the company, squeezing the founders' stakes.
That can cause friction between founders and investors. And if they can't sort it out, often the only option is to sell the company cheaply or just shut down.
<h3 class="p1">Back down to reality</h3>
A down round doesn't doom a company. But employee morale takes a real hit, as <a href="http://davidcummings.org/2012/06/12/startups-are-broken-after-a-down-round/">David Cummings explains</a> in a blog post. 
To summarize: When companies raise tons of money at big fat valuations, everyone is excited. Savvier ones calculate the difference between the exercise price on their stock options and the implied value of company shares in the latest round.
When suddenly that big, awesome <keyword id="51393" type="UNKNOWN" weightage="60" keywordseo="valuation">valuation</keyword> is taken away, everyone is bummed.
"The risk of a down round is that employees are far less incentivized to work because the value of shares, potential upside opportunity, and general spirit of the company are all diminished," an investor tells Business Insider.
Investors have protections against down rounds. They're typically issued new shares to make sure their stakes in the company aren't diluted by new investors. But that has to come out of someone else's proportional stake—typically founders.
Down rounds can make founders' stakes in the company worth much less, if not entirely worthless. In some cases, their stake may become so diluted that the founders are better off leaving the startups for a new venture. Any time a founder departs, it's a red flag for employees.
No one wants to raise a down round, but sometimes entrepreneurs don't have a choice. When you raise millions of dollars initially, it can be almost impossible to gain enough traction to justify a higher valuation the next time around. In other instances, a startup's burn rate may be too high, and entrepreneurs may be forced to hold out their hands to investors without much leverage.
<h3 class="p1">Don't get confused: Haircuts aren't down rounds. </h3>
One important thing: Don't confuse down rounds with the up-and-down reports of companies' valuations as they're in the middle of negotiating new financings.
Fab and Square are two examples of companies that appeared to accept slightly lower valuations in recent financings than what they'd initially sought. That's called negotiating—companies want higher prices, investors want lower prices, and they typically meet in the middle.
But those investments were still done at a big increase to prior rounds—<a href="http://www.businessinsider.com/facebook-ipo-fab-2013-1">Fab tripled its valuation</a>, and Square nearly doubled its valuation. Accepting a haircut from an initial negotiating position is smart business and doesn't (or at least shouldn't) have any negative impact on employee morale.
Twitter, likewise, has seen its value fluctuate between $8 billion and $11 billion in private transactions where small number of shares trade hands between investors. But because those are secondary transactions where the company didn't issue any shares, they have no real effect on employees—their shares aren't diluted, and their stock awards were typically issued at far lower prices anyway.
<h3 class="p1">The hard choice.</h3>
For some companies, though, down rounds are on the table.
Foursquare was reportedly <a href="http://www.businessinsider.com/foursquares-revenues-valuation-2012-11">seeking a new round of financing</a>, but investors were only willing to budge at a much lower valuation, in the $400 million range, instead of the $600 million–$700 million valuation Foursquare reportedly got when it raised $50 million in 2011. 
On Thursday, LivingSocial's CEO admitted the company is now worth under $1.5 billion instead of nearly $6 billion. (And there are questions about whether it's really worth that much, <a href="http://www.businessinsider.com/livingsocial-articles-incorporation-2013-2">given the hidden terms</a> of its latest financing.)
Those are the more visible examples. Far more numerous are the companies that raised millions in seed funding from well-known angel investors only to quietly disappear, with the founders taking those 9-to-5 day jobs they were hoping to escape.
We're going to see this happen more and more. It's all part of the startup cycle. Some companies will survive. Some will try to get acquired.
Others will fail. And a lingering question will haunt them: Did they ask for too much, too soon?

DOWN ON STARTUPS: What Happens When No One Thinks You're Worth Billions Anymore

<div class="image-container float_right" style="width:400px"><div class="image"></div><a href="&lt;a href="></a>"&gt;Daniel Goodman / Business InsiderBradford Shellhammer and Jason Goldberg <keyword id="1151721" type="COMPANY" weightage="60" keywordseo="Fab-com">Fab.com</keyword>'s co-founders.</div>Jason Goldberg and Bradford Shellhammer transformed <a href="http://fab.com/">Fab.com</a> from a failing social network into an innovative social commerce site in under two years.
In that short time, the Manhattan-based daily deal site for design enthusiast has <a href="http://www.businessinsider.com/fab-a-design-site-that-raised-156-million-to-compete-with-ikea-now-has-10-million-members-2012-12">surged to 10 million users</a>.
"The market for good design is a $100 billion industry that cuts across multiple product categories," Goldberg explained to <a href="http://betashop.com/post/3741657155/when-to-change-your-game-the-fab-com-story-10-tips">Betashop</a> last year. 
"Our team has a collective passion for design. There is no web-native e-commerce brand today for design products, particularly at discount pricing, so we could fill that void."
Last summer, the company raised $116 million in a Series C round placing it <a href="http://www.businessinsider.com/facebook-ipo-fab-2013-1">at a $600 million valuation</a>. Fab's success isn't a coincidence, two-thirds of its sales came from repeat customers, and total sales grew 600 percent from 2011 to 2012. 
Fab's leaders recently got together for off-site meetings to brainstorm and came up with this statement of how it works.
 The following presentation put together by Fab explains how the company functions, how it deals with challenges, and how it stands out from the pack.

THE FAB WAY: How I Built A $600 Million Company In Less Than 2 Years

<table class="image-container float_right" width="200"><tr><td><div class="image"></div>Fab.com CEO Jason Goldberg</td></tr></table>In July, <keyword id="715685" type="ORGANIZATION" weightage="60" keywordseo="Fab">Fab</keyword>, <a href="http://www.businessinsider.com/the-story-behind-fabs-105-million-fundraise-it-may-raise-10-20-million-more-plus-30-50-million-in-debt-2012-7">the online high-design goods store, raised a $116 million</a> Series C round at a $600 million <keyword id="51393" type="UNKNOWN" weightage="60" keywordseo="valuation">valuation</keyword>.
Like its shoppers, its investors got a really good deal: Fab had initially planned to raise less money at a higher valuation, giving away less of the company to new investors.
Yesterday, <a href="http://www.nytimes.com/2013/01/14/technology/start-up-investors-grow-wary-of-tech-ventures-after-facebooks-ipo.html?pagewanted=all&amp;_r=0">Nicole Perlroth wrote</a> in the New York Times that "Fab.com, a daily deal site for design, raised money at a lower valuation than it had planned because of Facebook’s troubled I.P.O."
That confirms what we've consistently reported since last summer: Facebook's IPO flop didn't just cast a pall on companies hoping to go public. It also <a href="http://www.businessinsider.com/facebook-fallout-late-stage-investors-are-using-the-facebook-ipo-to-depress-the-valuations-of-startups-2012-7">made things harder for startups raising money in private markets</a>.
Two people involved in the financing confirmed Perlroth's report to us.
One source told us that Fab had been looking to raise money at a range of valuations between $500 million and $800 million. It had received offers to invest at a $700 million valuation—but opted to cut that down to $600 million and raise more money than planned.
Fab CEO Jason Goldberg's fundraising strategy, according to one person familiar with it, was to make it a "feel-good moment" for investors, and the decision to cut the valuation was his.
The immediate cost for Fab, like its valuation, is more notional than real. It has a large amount of capital for expansion, but gave up approximately 20 percent of the company, rather than the 14 percent it had planned.
If Fab ends up being hugely valuable in a sale or IPO, then its most recent investors will have a stake that's 43% more valuable than it might otherwise have been.
Because of the complexities of venture-capital deals, those numbers could vary greatly depending on the specifics of any outcome for Fab, but they give a rough idea of the advantage Fab's investors gained.
Fab is an e-commerce store for unique products and designs with more than 10 million members.

Fab Discounted Itself To Get A $600 Million Valuation In The Wake Of The Facebook Fiasco

<ul><li>Insurtech startup <keyword id="4943836" type="PERSON" weightage="20" keywordseo="Acko">Acko</keyword> has raised $65 million in a series C round. </li><li>Founded by Varun Dua in 2016, the startup has marquee investors like Amazon, Accel Partners, SAIF Partners among others. </li><li>This funding round takes Acko’s <keyword id="51393" type="PERSON" weightage="20" keywordseo="valuation">valuation</keyword> to a reported $300 million. </li></ul>Insurance technology startup Acko has <a href="https://www.vccircle.com/binny-bansal-others-invest-65-mn-in-digital-insurance-startup-acko/">raised</a> $65 million from <keyword id="6364080" type="PERSON" weightage="20" keywordseo="binny-bansal">Binny Bansal</keyword>, former Flipkart co-founder, and Kabir Misra, former SoftBank Managing Partner. The series C funding round with a <a href="https://www.vccircle.com/binny-bansal-others-invest-65-mn-in-digital-insurance-startup-acko/">reported</a> valuation of $300 million also saw participation from Intact Insurance (Canada’s property and casualty insurer) and existing marquee investors like Amazon, Accel Partners, SAIF Partners and TechPro Ventures. Acko, was founded by Varun Dua in 2016, and has gone on to make its mark in the Indian insurtech industry. In the recent past, Acko has been signing partnerships one after the other venturing into different verticals within insurance. The insurtech startup tied up with <a href="https://www.thehindubusinessline.com/money-and-banking/acko-partners-goibibo-for-travel-insurance-foray/article26006200.ece">Goibibo</a> to offer travel insurance to the latter’s users. Acko also partnered with <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/acko-general-insurance-partners-with-driveu-to-provide-trip-cover-for-car-owners/articleshow/66118573.cms">DriveU</a> to offer trip cover to car owners who opt to hire drivers from the latter’s platform. Interestingly, the startup also formed a partnership with <a href="https://economictimes.indiatimes.com/small-biz/sme-sector/au-small-finance-bank-partners-with-insurtech-firm-acko-general-insurance/articleshow/68269212.cms">AU Small Finance Bank</a> in early March to bring about customised insurance deals for their users. India has seen a slow penetration of the insurance sector but things are changing now. According to <a href="https://economictimes.indiatimes.com/industry/banking/finance/insure/insurance-industry-to-touch-280-billion-by-fy20-assocham/articleshow/65740339.cms">reports,</a> the Indian insurance industry is set to grow to $280 million by 2019-20. India has also seen a surge in insurtech startups with the likes of Policybazaar also gaining unicorn status. See Also: <a href="https://www.businessinsider.in/indias-two-startup-icons-switch-to-the-other-side-as-venture-capitalists/articleshow/67420444.cms">India’s two startup icons switch to the other side — as venture capitalists</a> <a href="https://www.businessinsider.in/heres-why-binny-bansals-021-capital-placed-its-bets-on-the-two-year-old-legal-tech-startup-spotdraft/articleshow/68198106.cms">Why India’s Unicorn Founders Backed This Barely Two-Year-Old Legal Tech Startup</a> <a href="https://www.businessinsider.in/after-minting-1-billion-from-flipkart-sale-sachin-bansal-is-now-betting-big-on-ola/articleshow/67526383.cms">Watch Out Uber. Sachin Bansal Gets Ola Share After Selling Flipkart</a>

This Indian insurance startup may be worth $300 million in just over two years

<a href="http://www.confluent.io/about#about_confluent">Confluent</a>Confluent cofounder CEO Jay KrepsWe are half-way through 2017 and it's time to take stock of the hottest startups so far this year.For that we turned to <a href="http://pitchbook.com/">Pitchbook</a>, the website that tracks financial investments. Pitchbook sifted through its vast database to uncover the 383 startups that received funding so far in 2017 and that sell products or services to businesses, aka enterprise startups.We chose a metric called a "valuation step up" to decide which of these startups were the hottest. A valuation step up indicates the increase in worth that investors ascribe to a particular startup. We measured between the valuation at the previous round of investment and right before the startup secured a new round (in wonky speak: post-money to pre-money).Not all rounds are step ups. Sometimes they are down rounds. Of the 383 rounds we looked at, 169 of them saw an increase in valuation. The median step up for the early stage startups was 1.73 times the previous valuation; for later stage, 1.39 times and all of the companies on this list had step-ups well above those medians.

The 18 hottest enterprise startups of 2017

<ul class="summary-list"><li><keyword id="1042120" type="PERSON" weightage="60" keywordseo="Uber">Uber</keyword> is reportedly considering leading a $170 million emergency <keyword id="60356" type="ORGANIZATION" weightage="60" keywordseo="fundraising">fundraising</keyword> round for the scooter startup <keyword id="163870" type="ORGANIZATION" weightage="60" keywordseo="lime">Lime</keyword>, <a href="https://www.theinformation.com/articles/uber-in-talks-to-lead-170-million-lime-investment-at-lower-valuation">according to the Information. </a></li><li>The terms of the deal will hit the scooter startup hard. The round will reportedly slash Lime's valuation to $510 million, a 79% slide from the startup's <a href="https://www.businessinsider.com/lime-raising-another-300-million-valuation-hits-24-billion-2019-2">whopping valuation of $2.4 billion in 2018. </a></li><li>As a part of the deal, Uber will have the option of buying Lime between 2022 and 2024 at a specific price, the report said. </li><li>But while the terms of the new proposed deal swing in favor of Uber, it's worth noting that the investment comes at a time when the ride-hailing giant has also been under severe pressure as the coronavirus outbreak has slammed its core business.</li><li>Both Uber and Lime did not immediately respond to requests for comment. </li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Uber is reportedly in talks to lead an emergency fundraising round of $170 million in the scooter startup Lime, according to a <a href="https://www.theinformation.com/articles/uber-in-talks-to-lead-170-million-lime-investment-at-lower-valuation">new report</a> by the Information's Cory Weinberg and Amir Efrati. The news comes as the coronavirus outbreak has decimated the startup's business. Stay-at-home orders and social distancing guidelines have deterred the startup's usual source of customers, forcing it to consider this emergency round as early as March. Uber, already an existing investor in the scooter-sharing startup, is said to be putting in $85 million of its own money to help Lime increase its runway. However, the terms of the deal will hit the scooter startup hard. The round will reportedly slash Lime's valuation to $510 million, a 79% slide from the startup's <a href="https://www.businessinsider.com/lime-raising-another-300-million-valuation-hits-24-billion-2019-2">whopping valuation of $2.4 billion in 2018. </a>The round also grants Uber the opportunity to buy Lime at a set price between 2022 and 2024, the report said. In return, Uber would "transfer" its existing bike and scooter-sharing business to Lime. Both Uber and Lime did not immediately respond to Business Insider's requests for comment. Uber last invested in Lime back in 2018, in a Series C round worth $335.1 million, according to Pitchbook data. The ride-hailing giant also doubled down on Lime in recent years, most notably through its acquisition of its rival Jump. But while the terms of the new proposed deal swing in favor of Uber, it's worth noting that the round comes at a time when the ride-hailing giant has also been under severe pressure as the coronavirus outbreak has slammed its core business. Uber has already <a href="https://www.businessinsider.com/uber-2-billion-writedown-withdraws-guidance-2020-4">revoked</a> its previous financial guidance, and told its employees to expect <a href="https://www.businessinsider.com/uber-cto-resigns-as-company-reportedly-considers-5400-job-cuts-2020-4">layoffs that could cut up to 20% of the workforce</a>. The full extent of the damage caused by the coronavirus to Uber's business this quarter should be apparent soon, when the company reports its earnings on May 7th. Read the original article on <a href="https://www.businessinsider.com/uber-reportedly-considering-emergency-funding-to-lime-2020-5">Business Insider</a>

Uber is reportedly considering another investment in Lime, in a round that would sink the embattled scooter startup's valuation by nearly 80% — and give Uber the option to buy it in 2 years

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