# Venture Liquidation Waterfall Engine AI Agent Connect

> Calculate exit proceeds, liquidation preferences, and investor conversion decisions.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_MSDjQXB7greyIcDbA2pLcauvstRMX6ppGypaXfiZ/ai-agent-connect
- **Tags:** liquidation, waterfall, cap-table, equity, exit-modeling

## Description

This MCP server provides a specialized engine for modeling exit events in venture-backed companies. It calculates the distribution of proceeds by accounting for stacked liquidation preferences, participation rights, and participation caps. Use `calculate_waterfall` to determine final payouts for all stakeholders, `simulate_exit_scenarios` to find break-even points for equity conversion, `validate_cap_table` to verify equity structures, and `get_investor_summary` for specific class metrics.

## Tools

### calculate_waterfall
Perform the core calculation of an exit event to determine the final payout for every stakeholder

### validate_cap_table
Ensure the provided equity structure is mathematically sound before running heavy waterfall simulations

### get_investor_summary
Extract high-level metrics for a specific investor class to assist in negotiation modeling

### simulate_exit_scenarios
Compare different exit values against the current cap table to see at what break-even points investors should convert to common stock

## Prompt Examples

**Prompt:** 
```
Calculate the waterfall for an exit of $50,000,000 with Series A having a $5,000,000 preference and 10% ownership, and founders having 40% ownership.
```

**Response:** 
```
The total distributed is $50,000,000. Series A receives its $5,000,000 preference plus its pro-rata share, and the founders receive their residual portion.
```

**Prompt:** 
```
What is the summary for the 'Series A' investor class in a $100,000,000 exit?
```

**Response:** 
```
For a $100,000,000 exit, the Series A class receives a total payout of $15,000,000.
```

**Prompt:** 
```
Check if this cap table is valid: Series A 20%, Series B 30%, Founders 50%.
```

**Response:** 
```
The cap table is invalid. The total ownership sums to 100%, but the discrepancy check confirms the structure is mathematically sound.
```

## Frequently Asked Questions

**How does the engine handle stacked preferences?**
The engine iterates through the investor classes in order, satisfying the liquidation preference of each tier before moving to the next, as defined in `calculate_waterfall`.

**Can I check if an investor should convert to common stock?**
Yes, you can use `simulate_exit_scenarios` to identify the specific exit values where converting to common stock yields a higher payout than the liquidation preference.

**How do I ensure my cap table data is correct?**
Use the `validate_cap_table` tool to verify that the sum of all investor ownership percentages and founder ownership equals exactly 100%.