Venture Debt: Term Sheets, Warrant Coverage, Runway & Effective Cost
Turn a venture debt term sheet into payments and runway, size warrants, find the all-in cost with IRR and XIRR, compare dilution with equity, test covenants and model a default: 8 hands-on labs with a fictional startup and lender. Educational only, not financial advice.
The first lesson is free — no account needed.
About this course
A venture debt course that turns the term sheets of fictional startups into cash flows in a spreadsheet, for founders, startup CFOs, VC and venture lending analysts and finance students. You build the monthly debt service of a loan with an interest-only period and amortisation and measure how many months of runway it really buys, turn warrant coverage into a number of warrants and fully diluted ownership, find the effective annual cost of two offers with IRR, measure the lender's return with the final payment and warrants using XIRR, compare founder dilution and value at exit for debt and equity, test a minimum-cash covenant under three burn scenarios, compare revenue-based financing, venture debt and equity across exit values, and value a default and a restructuring offer. Fictional companies and lenders, illustrative terms, with no lender or fund affiliation. Educational only, not financial advice. The first lab is free.
Lessons
- Term Sheet Basics: Draw, Interest-Only, Amortisation & Runway Extension (Chart)Free
- Warrant Coverage: From % of the Loan to Number of Warrants Pro
- Effective Cost: Stated Rate vs All-in Cost with Fees Pro
- Lender Returns: Final Payment, Warrant Value & XIRR Pro
- Venture Debt vs Equity: Dilution and Founders' Value at Exit Pro
- Covenants & MAC Risk: Testing a Minimum-Cash Covenant Pro
- RBF vs Venture Debt vs Equity: Which Is Cheapest at Which Exit? (Chart) Pro
- Default & Restructuring: Claim, Recovery Scenarios and Expected Value Pro