Sebi seeks details on startup valuation from PE, VC funds

Mumbai: The capital market regulator is taking a close look at how private equity houses (PE) and venture capital funds (VCF) value the startups and unicorns they bankroll.

A propped-up valuation gives a rosy picture of the portfolio to a fund’s investors and paves the way for the fund manager to attract more money from new as well as old investors when it goes for the next round of fund-raising.