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Stage 1 (2021) “Stack a Unicorn”

Professional Excel Templates for your Business

Stage 1 (2021) "Stack a Unicorn"

This is an actual case from the Financial Modeling World Cup 2021, Stage 1 (Jan 22-25) competition. It can be used to expand your knowledge of financial modeling and train for future FMWC Stages.

Case description:

The objectives of this case are to help Unicorn Inc. and its investors plan a new investment round, Series C. The aim is to model Unicorn Inc.’s cap table as it looked at the end of each round and how it would look after round C. This will enable investors to project their returns with all future investments and probable dilution from different funding scenarios. The case will consider different funding options to optimize the returns of investors.

Unicorn Inc. is a technology startup that has scaled quickly with a strong product. The company has been operationally in losses, but is gaining market acceptance, users, and trust rapidly. This growth has been at a significant cost, with negative operating and investment cash flows every month. Unicorn Inc. has been able to raise funds via equity investors four times in the past to fund its operating cash flows. These investments happened at different stages in their life and were at different valuations. Unicorn Inc. is seeking to raise a $100Mn Series C at a pre-money valuation of $900Mn. The company has four investors, and each investor has different conditions for their investment in this round. The aim is to help Unicorn Inc. and its investors plan the new investment round to optimize investor returns.

The downloadable file consists of the following:
-Task: Excel file with given case assumptions; PDF file with Case Materials; PDF file with Questions.
-Solution: Excel file with the full Solution Model; PDF file with correct Answers in Bold.

This model awarded 400 points, while the whole 2h Stage allowed to earn 1,150 points in total.

For your questions/suggestions/consideration please reach out to the Organizing Committee of the Financial Modeling World Cup at info@fmworldcup.com
You can also buy tickets to participate in the future FMWC Stages at https://fmworldcup.com/shop/

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