Valuations are getting outrageous, that’s the theme of just about every startup and investor themed conference in the country right now. While some pundits suggest that the unicorn startup could be leading to the next bubble, other’s thing it’s a very unhealthy place to be.
Unicorn startups and their outrageous valuations are typically driven by VC ego. One VC hears that another is getting into a deal and will do whatever it takes to participate as well, that drives the valuation up and helps startups raise insane money.
Unicorn startups aren’t relegated to US borders. Delivery Hero is a Berlin based delivery startup that just raised $110 million dollars at a $3.1 billion dollar valuation. What’s alarming about this transaction, is that the two VC firms that participated in this deal were both US based.
In true Unicorn fashion Delivery Hero just came off a $320.1 million dollar investment just four short months ago. Delivery Hero’s closest US competition is GrubHub which has raised funding at a $3.2 billion dollar valuation.
Delivery Hero’s food delivery platform can be found in 34 countries including China, Australia, Sweden and Germany. The company says they fulfill 10 million orders per month from over 200,000 restaurants.
The Delivery Hero platform allows customers to order food online, as well as make payments for those orders online. You can find out more at deliveryhero.com