Sector: SaaS (B2B Productivity Software)
Transaction Type: Minority growth equity investment
Location: Australia

Client Profile

A SaaS company serving professional services firms with a high-margin, recurring revenue product. The founders had achieved early profitability and were approached by a venture capital fund with a term sheet for a minority investment.

Challenge

The founding team lacked internal finance capability and faced difficulties engaging confidently with the investor. Issues included:

  • No investor-ready financial model or data room
  • Limited understanding of dilution mechanics and preference stacks
  • Unclear view of valuation range and defensibility
  • Pressure to accept an investor-friendly term sheet under time constraints

Cavari’s Role

Cavari acted as transaction advisor to the founders, supporting across:

  • Full financial model development and ARR cohort analysis
  • Cap table scenario modelling and valuation benchmarking
  • Term sheet redline and investor negotiation strategy
  • Structuring of board rights and vesting mechanics
  • Data room preparation and investor Q&A management

Strategic Approach

We rebuilt the company’s model based on actual billing behaviour, churn sensitivity, and revenue expansion metrics. Using SaaS-specific comps and forward revenue multiples, we delivered a justified valuation range and capital strategy.

Cavari negotiated favourable changes to the term sheet, including revised liquidation preferences, capped downside protection, and enhanced founder control. We worked in parallel to produce a clean data room aligned with investor diligence standards.

Outcome

  • Final valuation increased by 19% from initial term sheet
  • Dilution reduced by 6% through optimised structuring
  • Full data room delivered within 10 business days
  • Founders retained operational control and long-term strategic direction
  • Funding closed with stronger alignment and lower execution risk

Strategic Insight

Transaction support is not just technical, it is strategic. For high-potential founders navigating growth capital, clarity across valuation, structure, and governance terms is critical. Cavari empowers founders with the tools, insights, and confidence to negotiate from strength.