Value a Business Software Scale-Up for Its Series B Round
Overview
What this challenge is about.
Value a B2B SaaS scale-up with DCF, comps, and VC methods. Reconcile three models to earn a verifiable certificate.
The scenario
The client is a venture-backed business-to-business software company of about 40 people that sells analytics tools to mid-market firms on annual subscriptions; it has strong recurring revenue and high gross margins but is still unprofitable. It is mid-transition from a self-serve, product-led growth motion to an enterprise sales model just as its founders prepare to raise a Series B round, making a clear, defensible valuation urgent.
The Brief
What you'll do, and what you'll demonstrate.
Estimate a defensible pre-money valuation range for the company's Series B round by triangulating discounted cash flow, comparable company, and venture capital valuation methods.
Earning criteria — what you'll demonstrate
- Build a defensible discounted cash flow model from multi-year projections, including a justified discount rate and terminal value
- Select and apply comparable company multiples appropriate to a high-growth, unprofitable software business
- Apply the venture capital method by linking a target investor return and exit assumptions to a present value
- Triangulate multiple valuation outputs into a single coherent range and explain divergence between methods
- Translate subscription-software metrics (recurring revenue, retention, customer acquisition cost) into valuation assumptions
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.
- Dcf Valuation
Apply dcf valuation to solve real industry problems and demonstrate production-level capability.
- Comparable Company Analysis
Apply comparable company analysis to solve real industry problems and demonstrate production-level capability.
- Venture Capital Method
Apply venture capital method to solve real industry problems and demonstrate production-level capability.
- Financial Modeling
Build and validate financial models that support strategic business decisions.
- Saas Metrics
Apply saas metrics 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:
Investment Analyst
This challenge mirrors the core analyst task of building and defending a company valuation under uncertainty, equipping you to model cash flows, benchmark against peers, and present a reasoned range to decision-makers in venture, growth equity, or equity research roles.
This challenge sharpens
- dcf-valuation
- comparable-company-analysis
- financial-modeling
Corporate Development Associate
Corporate development teams value targets and structure deals; here you practice triangulating an enterprise value and pressure-testing assumptions, the exact skills used to evaluate acquisitions and investments inside an operating company.
This challenge sharpens
- dcf-valuation
- comparable-company-analysis
- financial-modeling
Venture Capital Analyst
Venture analysts size rounds and judge entry valuations for high-growth, unprofitable companies. This brief has you apply the venture capital method and read subscription metrics, building the judgment needed to price a Series B and negotiate ownership.
This challenge sharpens
- venture-capital-method
- saas-metrics
- financial-modeling