VC Case Scenarios

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Investment CaseQuestion 1 of 4

Read the scenario below and answer the questions

Company Snapshot

CloudDock is a B2B workflow tool that uses AI to automate compliance documentation for mid-market manufacturing suppliers.

  • Current ARR: $1.2M
  • ARR growth: 15% month-over-month (last 6 months)
  • Gross margin: 75%
  • Net burn: $0.25M per month
  • Cash on hand (pre-round): $2.5M
  • Team: 2 technical founders (ex-industry), 1 GTM lead (ex-ERP vendor)
  • Customers: 60 customers, top customer = 12% of ARR
  • Sales motion: $18k ACV, 8-week sales cycle, implementation ~2 weeks

Market

  • Target buyer: compliance manager at suppliers selling into regulated OEMs
  • Management claims “multi-billion” market; initial wedge is a repeatable compliance workflow

The Round (Proposed)

  • Raising $6M at $24M pre-money
  • Standard 1x non-participating preferred
  • Pro-rata rights for new investor
  • Primary use of funds: grow sales + product integrations over 18–24 months
easyFundraisingTerm Sheets

In the CloudDock case, what is the post-money valuation of the round?

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