Venture firms step into Unicorn rounds

Venture capital funds, typically used to being the first institutional investor in early-stage startups, are now entering companies at billion-dollar valuations.

What is Happening? The latest is Lightspeed Venture Partners, which is in talks to invest in Acko, said two sources briefed on the matter. The online general insurance startup is looking to raise $200-250 million at a pre-money valuation of a little over $800 million, one of them said. 

Private equity major General Atlantic also has been finalized to invest in Acko, they said.

Similarly, Accel recently co-led a $650-million investment with SoftBank Vision Fund in upskilling and executive education company Eruditus. The deal was executed at a post-money valuation of $3.2 billion. In fact, Accel already had been in discussions with Eruditus before SoftBank came into the picture.

“Accel was set to lead a $200-250 million round in the company along with Prosus before SoftBank came in. The venture firm has invested about $130 million in the round,” said a source briefed on the transaction.