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 analysisCompare to Precedent
Input: Term sheet, precedent set
Process: Compare against historical terms
Output: Precedent comparison, consistency analysisIdentify Outliers
Input: Term sheet, outlier thresholds
Process: Flag unusual terms
Output: Outlier report, risk assessmentSupport Negotiation
Input: Current terms, priorities
Process: Analyze trade-offs, suggest approach
Output: Negotiation strategy, talking pointsComparison 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
- Maintain current market benchmark data
- Consider stage and sector context
- Weight precedent by recency
- Distinguish must-haves from nice-to-haves
- Consider full term package, not just individual terms