Structure a Series A Term Sheet for Flowt's Enterprise Pivot
Overview
What this challenge is about.
Structure a Series A term sheet for a B2B SaaS pivot. Set valuation, liquidation preference, and board terms. Earn a verifiable certificate.
The scenario
Flowt is a bottom-up SaaS company whose product spread through individual users signing up directly, and it now wants to layer on a top-down enterprise sales motion to land larger, higher-value contracts. That shift changes its cost structure, sales cycle, and risk profile faster than its current $3 million in annual recurring revenue can comfortably support.
The Brief
What you'll do, and what you'll demonstrate.
How should the fund structure a $5 million Series A term sheet that protects its capital against the risk of a failed enterprise pivot while still incentivizing Flowt's founder to grow?
Earning criteria — what you'll demonstrate
- Translate raw SaaS metrics into a defensible view of a company's unit economics and growth quality
- Select liquidation preference, anti-dilution, and board terms that are appropriate to a specific risk profile and consistent with market norms
- Design a milestone-based tranche structure that aligns capital release with de-risking events
- Quantify downside protection and dilution through a simple returns model
- Communicate a complex deal recommendation concisely to an investment committee
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Aligned coursework coming soon.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
- Term Sheet Negotiation
Apply term sheet negotiation to solve real industry problems and demonstrate production-level capability.
- Saas Metrics
Apply saas metrics to solve real industry problems and demonstrate production-level capability.
- Financial Modeling
Build and validate financial models that support strategic business decisions.
- Deal Structuring
Apply deal structuring to solve real industry problems and demonstrate production-level capability.
Careers
Career paths this challenge builds toward
Completing this challenge demonstrates skills that transfer directly to these roles:
Venture Capital Associate
This challenge mirrors the core associate workflow: read a company's metrics, judge the risk, and shape a term sheet that committee will sign. You leave able to defend valuation and downside protection to partners.
This challenge sharpens
- term-sheet-negotiation
- saas-metrics
- deal-structuring
Startup CFO / Finance Lead
Sitting on the investor side of a Series A teaches founders' finance leaders exactly how term economics and dilution work, so they can model fundraising scenarios and negotiate from a position of understanding rather than guesswork.
This challenge sharpens
- financial-modeling
- saas-metrics
- deal-structuring
Corporate Development Analyst
Structuring risk-adjusted deals and pricing downside protection are the same muscles used in corporate M&A and strategic investments, where analysts must reconcile a target's metrics with defensible deal terms.
This challenge sharpens
- deal-structuring
- financial-modeling
- term-sheet-negotiation