Understand equity and term sheets

explain-equity-termsskillsetup L1★3,035

What it does

Activate for ANY equity, legal, or term

Best for

Activate for ANY equity, legal, or term sheet question related to startup investing or fundraising. Triggers include: "what is a SAFE", "explain this term sheet", "what does pro-rata mean", "what is liquidation preference", "explain anti-dilution", "ISO vs NSO", "what is a 83(b) election", "what is carried interest", "explain drag-along", "what is a valuation cap", "what does MFN mean", "explain convertible note vs SAFE", "what is a down round", "explain vesting cliff", "what does fully diluted mean", "term sheet question", "equity question", "what does this clause mean". Also triggers when a user pastes legal text from a term sheet, SAFE, or subscription agreement and asks what it means. Works on claude.ai and Claude Code.

Inputs

· Configuration file or directory path
· Command arguments

Outputs

· Operation results
· Status output

Requires

· LLM CLI

Preconditions

· Required CLI tool installed and authenticated

Failure modes

· Advisory lock file prevents concurrent access
· Required CLI tool not found in PATH
· API authentication failed or rate limited

Trust signals

· Atomic operations and concurrent edit detection
· Registered skill in shared repository