---
title: "Free term sheet review tool"
description: "Get instant AI review of a VC term sheet: pre/post valuation, liquidation preference, option pool, board seats, protective provisions, anti-dilution."
canonical: "https://contracko.com/tools/term-sheet-review"
---
# Free term sheet review tool

Source: https://contracko.com/tools/term-sheet-review

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# Free term sheet review tool

Upload a venture financing term sheet and get instant AI analysis of the valuation, liquidation preference, option pool, board composition, protective provisions, anti-dilution, what is binding versus non-binding, and exclusivity.

Upload your contract to start your free analysis

Drag and drop your contract here, or browse files

PDF or DOCX, max 50MB, up to 100 pages

What we'll analyze

Our AI engine reviews your contract and extracts key insights across multiple dimensions:

Risk assessment

Overall risk score with specific concerns

Key dates

Start, end, renewal, and notice deadlines

Obligations

Your duties and counterparty requirements

Financial terms

Pricing, payment terms, and penalties

Red flags

Unusual or concerning clauses

Liability & indemnity

Caps, exclusions, and indemnification

Your privacy, guaranteed

Enterprise-grade encryption

Never used for AI training

GDPR compliant

Deleted after analysis

## Frequently asked questions

Common questions about our term sheet review

- **Q:** What does this term sheet review tool check?
  **A:** It analyzes the valuation (pre-money and post-money) and how the option pool is sized and whether it dilutes founders, the liquidation preference (multiple, participating versus non-participating, and seniority), board composition and voting control, the protective provisions and investor consent rights, the anti-dilution mechanism (full-ratchet versus broad-based weighted average), and which terms are binding versus non-binding. Exclusivity and no-shop terms are extracted as well.

- **Q:** Does it explain the liquidation preference and anti-dilution?
  **A:** Yes. The tool identifies the liquidation preference multiple and whether it is participating or non-participating, which decides how proceeds split on an exit, and it flags the anti-dilution protection (full-ratchet is the most founder-unfriendly, broad-based weighted average is the market norm) so you can see the dilution risk in a down round.

- **Q:** Which parts of a term sheet are actually binding?
  **A:** Most term sheets are non-binding on the economic and governance terms but binding on exclusivity (no-shop), confidentiality and sometimes expense reimbursement. The tool flags the binding versus non-binding provisions and surfaces the exclusivity period so you know what you are actually committing to at signing.

- **Q:** How long does the term sheet analysis take?
  **A:** Most term sheets are analyzed in under 30 seconds.

- **Q:** What file formats can I upload?
  **A:** PDF and Word (DOCX) files are both supported.

- **Q:** Is my term sheet data secure?
  **A:** Yes. Your document is transmitted over TLS encryption, processed by AI providers under terms that exclude training on your data, and deleted from our servers within 24 hours.

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