Rumor: Letao Announces False Fourth-Round Funding Figures
Ebrun.com, 1/12/12
A source close to the investment industry said recently that Chinese B2C online shoe retailer Letao had received USD 15 mln in its fourth round of funding, rather than the USD 30 mln it had announced, meaning that the amount of funds raised by the company had fallen sharply between its third and fourth rounds.
During the feverish period for e-commerce investment in 2010 and H1 2011, the source said, industry valuations were at times assessed at 700% of the previous year's operating revenues. Starting in H2 2011, however, domestic and international markets began to cool, meaning that valuations are assessed at 100% to 200% of current operating revenues.
Editor's Note: For more information on this topic, please see "Letao Obtains USD 30 Mln in Fourth-Round Funding," MD 1/10/12 issue.
Keywords: scandal valuation e-commerce Internet funding B2C Letao fourth-round apparel
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