Investors' concerns about companies' propensity to burn through capital at alarming rates has rocked Wall Street and torpedoed efforts by firms to raise private capital.The grim reality of tightening capital markets caught up with Esurance Inc. in late September, forcing the company to sell its business to Folksamerica Holding Company. Inc., a reinsurer based in New York and a subsidiary of Bermuda-based White Mountains Insurance Group.

The decision to sell the San Francisco-based company came after Esurance was rebuked by the lead investor of a third round of venture funding.

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