# Venture Term Sheet Analysis AI Agent Connect

> Analyze venture capital term sheet economics, ownership dilution, and exit waterfalls.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_OVYfzeR5mntynQn6D1zK457JK0oDrgv0FNRXqcms/ai-agent-connect
- **Tags:** venture-capital, term-sheet, dilution, waterfall, valuation

## Description

This MCP server provides advanced modeling for venture capital financing. It allows AI agents to calculate post-investment ownership structures using `calculate_ownership_structure`, simulate cash distributions during liquidity events with `simulate_exit_waterfall`, compare the impact of different valuation offers via `evaluate_valuation_impact`, and verify compliance with investor rights using `analyze_protective_provisions`.

## Tools

### analyze_protective_provisions
Determines if specific exit scenarios violate standard investor rights or protective clauses

### evaluate_valuation_impact
Compares the economic reality of different valuation offers

### simulate_exit_waterfall
Calculates the cash distribution to each stakeholder during a liquidity event

### calculate_ownership_structure
Determines the ownership percentages of all parties following the investment

## Prompt Examples

**Prompt:** 
```
Calculate the ownership structure for a $5M pre-money valuation with a $2M investment and a 10% option pool.
```

**Response:** 
```
The post-money valuation is $7,000,000. The investor ownership is 28.57%, the option pool is 10.00%, and the founder ownership is 61.43%.
```

**Prompt:** 
```
If there is a $10M exit with a 1x non-participating liquidation preference for a 20% investor, how much do they get?
```

**Response:** 
```
The investor will receive $2,000,000, which is their 20% pro-rata share of the $10,000,000 exit.
```

**Prompt:** 
```
Compare a $10M pre-money valuation vs an $11M pre-money valuation for a $2M investment.
```

**Response:** 
```
Increasing the pre-money valuation from $10M to $11M reduces founder dilution by approximately 1.82%.
```

## Frequently Asked Questions

**How does the option pool affect founder ownership?**
The option pool is typically carved out of the pre-money valuation, meaning the dilution is absorbed by existing shareholders, reducing the founders' final ownership percentage.

**What is the difference between participating and non-participating liquidation preferences?**
Non-participating investors choose between their liquidation preference or their pro-rata share. Participating investors receive their preference and then share in the remaining proceeds.

**Can I simulate an exit scenario?**
Yes, you can use `simulate_exit_waterfall` to calculate exactly how proceeds are distributed among stakeholders based on their specific rights.