term-sheet-analyzer

To analyze a SAFE term sheet, extract the valuation cap, discount, and MFN terms to estimate implied ownership and model post-money vs pre-money conversion outcomes. This process decodes complex financing terms into plain-language dilution scenarios and risk findings.

Liquidation preference in a term sheet determines payout order during an exit. Participating preference allows investors to get their money back plus share remaining proceeds, while non-participating limits them to either their preference or converting to equity, significantly impacting founder returns.

To compare competing term sheets, extract valuation, liquidation preference, anti-dilution provisions, and option-pool assumptions side-by-side. This comparison highlights which offers are more founder-friendly across key exit scenarios by mapping structured dilution and control consequences.

Yes, you can model convertible note dilution by extracting the principal, interest rate, conversion discount, and valuation cap. This calculates how accumulated interest increases the converted equity amount, providing structured dilution scenarios and flagging maturity repayment risks.

Full ratchet anti-dilution affects existing shareholders more severely by lowering the conversion price to the new, lower priced-round price, causing greater dilution. Weighted average anti-dilution adjusts the price based on a blended formula, resulting in moderate dilution outcomes.

To model dilution accurately, extract the option pool size and whether it is created pre-money or post-money from the term sheet. A pre-money option pool dilutes founders before new investment, while a post-money pool shares the dilution between founders and incoming investors.