Term sheet analyzer

Overview

The Term Sheet Analyzer helps first-time founders understand what they are signing. Upload a term sheet and get a plain-language breakdown of terms, implications, and potential red flags.

Term extraction

Automatically identify and explain key terms

Red flag detection

Spot investor-heavy or unusual terms

Market comparison

Compare to standard terms for your stage

Uploading term sheets

Upload your term sheet to start analysis. We support multiple formats and input methods.

Upload methods:

PDF upload: Upload a PDF file directly
DOCX upload: Upload Word documents
Paste text: Copy and paste the term sheet text directly

How to upload:

Go to Paperwork from your dashboard sidebar

Select Term Sheet and click Analyze Term Sheet

Upload your file or paste the text

Wait for analysis (usually 30-60 seconds)

Key term extraction

The analyzer automatically identifies and explains the most important terms in your term sheet.

Valuation terms: Pre-money valuation, valuation cap, discount rate

Investment structure: Investment amount, instrument type (SAFE, convertible, equity)

Investor rights: Pro-rata rights, information rights, board seats

Protective provisions: Anti-dilution, liquidation preference, vesting

Conversion terms: Conversion triggers, maturity date, interest rate

Learn more about term sheet terms

Understanding analysis results

Your analysis results include several sections to help you understand the term sheet:

Analysis sections:

Term breakdown: Each key term explained in plain language with what it means for you
Dilution modeling: How this investment affects your ownership at conversion
Red flags: Investor-heavy terms that warrant discussion or negotiation
Market comparison: How terms compare to typical deals at your stage
Questions to ask: Suggested questions to discuss with the investor

Important: This analysis is educational, not legal advice. Always consult a startup attorney before signing a term sheet.

Red flag detection

The analyzer identifies terms that may be unfavorable or unusual. Red flags are not necessarily deal breakers, but warrant discussion.

Common red flags:

Participating preference: Investors get their money back AND share in remaining proceeds
Full ratchet: Aggressive anti-dilution that can significantly dilute founders
Multiple liquidation preference: Investors get 2x or more before common shareholders
Excessive board control: Investors controlling majority of board at early stages
Drag-along at low threshold: Ability to force sale with small majority approval

Saved analyses

All your term sheet analyses are saved for future reference. You can revisit them anytime.

Access previous analyses from the Term Sheet page

Compare multiple term sheets side by side

Add notes and track negotiation progress

Delete analyses when no longer needed

Privacy and security

Your term sheets contain sensitive information. Here is how we protect them:

Security measures:

Uploads are encrypted in transit and at rest
Documents are processed securely and not shared with third parties
You can delete your term sheets at any time
Analysis data is only visible to you
We do not train AI models on your documents

Using analysis for negotiation

Your analysis can inform term sheet negotiations:

Negotiation tips:

Focus on terms that matter most: valuation, liquidation preference, board composition
Use market comparison data to support your position
Ask about red flags directly - investors expect questions
Know what is negotiable vs. standard for the investor
Get competitive term sheets when possible - leverage helps

Learn more about term sheets

Previous: Market analysis Next: Investor outreach

Overview

The Term Sheet Analyzer helps first-time founders understand what they are signing. Upload a term sheet and get a plain-language breakdown of terms, implications, and potential red flags.

Term extraction

Automatically identify and explain key terms

Red flag detection

Spot investor-heavy or unusual terms

Market comparison

Compare to standard terms for your stage

Uploading term sheets

Upload your term sheet to start analysis. We support multiple formats and input methods.

Upload methods:

PDF upload: Upload a PDF file directly
DOCX upload: Upload Word documents
Paste text: Copy and paste the term sheet text directly

How to upload:

Go to Paperwork from your dashboard sidebar

Select Term Sheet and click Analyze Term Sheet

Upload your file or paste the text

Wait for analysis (usually 30-60 seconds)

Key term extraction

The analyzer automatically identifies and explains the most important terms in your term sheet.

Valuation terms: Pre-money valuation, valuation cap, discount rate

Investment structure: Investment amount, instrument type (SAFE, convertible, equity)

Investor rights: Pro-rata rights, information rights, board seats

Protective provisions: Anti-dilution, liquidation preference, vesting

Conversion terms: Conversion triggers, maturity date, interest rate

Learn more about term sheet terms

Understanding analysis results

Your analysis results include several sections to help you understand the term sheet:

Analysis sections:

Term breakdown: Each key term explained in plain language with what it means for you
Dilution modeling: How this investment affects your ownership at conversion
Red flags: Investor-heavy terms that warrant discussion or negotiation
Market comparison: How terms compare to typical deals at your stage
Questions to ask: Suggested questions to discuss with the investor

Important: This analysis is educational, not legal advice. Always consult a startup attorney before signing a term sheet.

Red flag detection

The analyzer identifies terms that may be unfavorable or unusual. Red flags are not necessarily deal breakers, but warrant discussion.

Common red flags:

Participating preference: Investors get their money back AND share in remaining proceeds
Full ratchet: Aggressive anti-dilution that can significantly dilute founders
Multiple liquidation preference: Investors get 2x or more before common shareholders
Excessive board control: Investors controlling majority of board at early stages
Drag-along at low threshold: Ability to force sale with small majority approval

Saved analyses

All your term sheet analyses are saved for future reference. You can revisit them anytime.

Access previous analyses from the Term Sheet page

Compare multiple term sheets side by side

Add notes and track negotiation progress

Delete analyses when no longer needed

Privacy and security

Your term sheets contain sensitive information. Here is how we protect them:

Security measures:

Uploads are encrypted in transit and at rest
Documents are processed securely and not shared with third parties
You can delete your term sheets at any time
Analysis data is only visible to you
We do not train AI models on your documents

Using analysis for negotiation

Your analysis can inform term sheet negotiations:

Negotiation tips:

Focus on terms that matter most: valuation, liquidation preference, board composition
Use market comparison data to support your position
Ask about red flags directly - investors expect questions
Know what is negotiable vs. standard for the investor
Get competitive term sheets when possible - leverage helps

Learn more about term sheets

Previous: Market analysis Next: Investor outreach

Overview

Term extraction

Red flag detection

Market comparison

Uploading term sheets

Upload methods:

How to upload:

Key term extraction

Understanding analysis results

Analysis sections:

Red flag detection

Common red flags:

Saved analyses

Privacy and security

Security measures:

Using analysis for negotiation

Negotiation tips:

Related resources

Term Sheet Guide

SAFE Agreements

Valuation cap

Liquidation Preference

Term sheet analyzer

Overview

Term extraction

Red flag detection

Market comparison

Uploading term sheets

Upload methods:

How to upload:

Key term extraction

Understanding analysis results

Analysis sections:

Red flag detection

Common red flags:

Saved analyses

Privacy and security

Security measures:

Using analysis for negotiation

Negotiation tips:

Related resources

Term Sheet Guide

SAFE Agreements

Valuation cap

Liquidation Preference