Know Your Term Sheet AI Prompt

What is Know Your Term Sheet AI Prompt?

Know Your Term Sheet AI Prompt is an AI-powered tool designed to help startup founders understand and negotiate term sheets from venture capitalists. It leverages Large Language Models (LLMs) to provide clear explanations of complex legal terms and clauses, ensuring founders are well-informed and can protect their interests.

How to use Know Your Term Sheet AI Prompt?

1. Copy the provided AI Prompt: Use the prompt: This is a term sheet given by a venture capitalist. I have a few questions that protect the company's and the founders' interests. Explain...
2. Use your favorite LLM model: Attach your term sheet to the prompt in a LLM with a large context window (e.g. Claude, GPT-4).
3. Ask specific questions: The AI Prompt includes a comprehensive list of questions covering key aspects of a term sheet, such as liquidation preferences, anti-dilution clauses, and board member provisions. You can adapt these questions to your specific needs.

Why is Know Your Term Sheet AI Prompt important?

• Empowers Founders: Helps founders understand complex legal documents, reducing the risk of unfavorable terms.
• Saves Time and Money: Provides an initial understanding of the term sheet, potentially reducing the need for extensive legal consultation.
• Protects Founder Interests: Ensures founders are aware of potential pitfalls and can negotiate for better terms.

Where can I find the source code?

The source code for this page is available on GitHub.

Additional Reading Materials

• Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist by Brad Feld and Jason Mendelson
• Venture Capital Deal Terms by Harm De Vries, Menno Van Loon, Sjoerd Mol