# Pre-Seed Investment Terms Calculator AI Agent Connect

> Model early-stage investment structures like SAFE and Convertible Notes.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_hIggmmVQpGhCGLpBk06LFtzvEjf3dvSKjDReCo1s/ai-agent-connect
- **Tags:** safe, convertible-note, valuation, equity, pre-seed

## Description

This MCP server provides specialized tools for modeling early-stage investment structures. It allows AI agents to calculate effective valuations, equity percentages, and dilution scenarios for SAFE and Convertible Note investments. Use `calculate_conversion_outcome` to determine the primary conversion metrics, `compare_cap_vs_discount` to analyze the trade-off between valuation caps and discount rates, or `simulate_dilution_scenarios` to project ownership across various future company valuations.

## Tools

### calculate_conversion_outcome
Determines primary conversion metrics for an investment instrument

### compare_cap_vs_discount
Analyzes the trade-off between the Valuation Cap and the Discount Rate

### simulate_dilution_scenarios
Projects ownership under different future valuation scenarios

## Prompt Examples

**Prompt:** 
```
Calculate the conversion outcome for a $500,000 SAFE with a $5M valuation cap and a 20% discount, assuming the next round valuation is $10M.
```

**Response:** 
```
The effective valuation is $5,000,000, resulting in an equity percentage of 10.0%.
```

**Prompt:** 
```
Compare the cap vs discount for a $250,000 investment with a $4M cap and a 15% discount when the next round is $6M.
```

**Response:** 
```
The Valuation Cap is the primary driver, providing more value to the investor than the Discount Rate.
```

**Prompt:** 
```
What happens to a $100,000 Note with 5% interest and a $3M cap if the next round is $5M?
```

**Response:** 
```
The total investment value including interest is $105,000, and the effective valuation is $3,000,000, resulting in 3.5% equity.
```

## Frequently Asked Questions

**What is the difference between a SAFE and a Convertible Note?**
A SAFE is a contract for future equity without interest, while a Convertible Note is a debt instrument that accumulates interest before converting into equity.

**How does the valuation cap affect my equity?**
The valuation cap sets a maximum price for conversion, ensuring you receive a specific minimum equity percentage if the next round's valuation is significantly higher.

**Can I simulate different exit valuations?**
Yes, you can use the `simulate_dilution_scenarios` tool to project ownership percentages across a range of potential future company valuations.