term-comparator

Term Comparator

Overview

The Term Comparator skill analyzes term sheets against market standards and fund precedents to identify outliers and support negotiation strategy. It enables data-driven term negotiations and ensures consistency with market norms.

Capabilities

Market Standard Analysis

• Compare terms against market benchmarks
• Identify investor-favorable vs. founder-favorable terms
• Track market term evolution over time
• Analyze terms by stage and sector

Precedent Comparison

• Compare against fund's historical terms
• Analyze co-investor standard terms
• Review competitor term patterns
• Build term precedent database

Outlier Identification

• Flag unusual or non-standard provisions
• Identify terms outside normal ranges
• Highlight aggressive or founder-unfriendly terms
• Note missing standard protections

Negotiation Support

• Suggest negotiation priorities
• Provide market data for negotiations
• Identify trade-off opportunities
• Model term package alternatives

Usage

Compare to Market

Input: Term sheet, market comparison parameters
Process: Analyze against benchmarks
Output: Market comparison report, variance analysis

Compare to Precedent

Input: Term sheet, precedent set
Process: Compare against historical terms
Output: Precedent comparison, consistency analysis

Identify Outliers

Input: Term sheet, outlier thresholds
Process: Flag unusual terms
Output: Outlier report, risk assessment

Support Negotiation

Input: Current terms, priorities
Process: Analyze trade-offs, suggest approach
Output: Negotiation strategy, talking points

Comparison Dimensions

| Dimension | Market Range | Notes |

|-----------|--------------|-------|

| Liquidation Preference | 1x non-participating standard | Participating increasingly rare |

| Anti-dilution | Broad-based weighted average | Full ratchet rare |

| Board Composition | Investor minority or balanced | Depends on stage |

| Protective Provisions | Standard set | Watch for unusual vetos |

| Option Pool | 10-15% refresh | Check pre vs. post |

Integration Points

• Term Sheet Drafting Process: Validate generated terms
• Definitive Document Negotiation: Support doc negotiations
• Term Sheet Generator: Ensure generated terms are standard
• Term Sheet Negotiator (Agent): Support agent negotiations

Market Data Sources

• NVCA survey data
• Fund precedent database
• Co-investor term patterns
• Legal firm market reports
• Industry benchmarking services

Best Practices

1. Maintain current market benchmark data
2. Consider stage and sector context
3. Weight precedent by recency
4. Distinguish must-haves from nice-to-haves
5. Consider full term package, not just individual terms