term-sheet-analyzer

What problem does it solve?

It helps founders, CFOs, and investors understand the real economic and control implications hidden in startup term sheets, including dilution, valuation mechanics, and liquidation preferences.

Core Features & Use Cases

• SAFE decoding and ownership math: Interprets post-money vs pre-money SAFE caps, discounts, and MFN terms to estimate implied ownership and conversion outcomes.
• Convertible note analysis: Extracts principal, interest, conversion discount, valuation cap, maturity/repayment risk, and models how interest increases dilution.
• Priced round parsing and risk flagging: Evaluates pre/post-money valuation, liquidation preference (participating vs non-participating), anti-dilution (full ratchet vs weighted average), pro-rata rights, option pool effects, and board/control terms.
• Side-by-side comparison: Compares multiple competing term sheets and highlights which terms are more founder-friendly across key exit scenarios.
• Plain-language risk summary with dilution scenarios: Produces a founder-ready summary plus structured dilution modeling outputs.

Quick Start

Use the term-sheet-analyzer skill to analyze the attached term sheet and return the implied ownership, key red flags, and dilution scenarios for typical exit values.