Patent ID: 8719139

Claim:
A method for using an investment agreement evaluator for evaluating an impact of provisions of a venture capital term sheet enterprise investment agreement on a current market value of equity holder equity and on equity holder payoffs, the method steps comprising: processing, by a computer, collected data regarding one or more provisions in the investment agreement, providing a storage device for storing the collected data on a storage medium, providing an input device which a user can use to store data in said storage medium, providing on a display the collected data which is operatively connected to said storage device for displaying data to said user, utilizing derivatives valuation methods to estimate said current market value of said equity holder equity based on said provisions of said venture capital term sheet enterprise investment agreement, a forecast of the future total enterprise valuation and a market forecast, analyzing, by the computer, an estimation of the impact of said provisions of said venture capital term sheet enterprise investment agreement on said equity holder payoffs for a plurality of possible future enterprise valuations, generating reports on said impact of said provisions on said payoffs for said plurality of possible future enterprise valuations, whereby said reports will present said expected payoffs under said provisions specified in said venture capital term sheet enterprise investment agreement, and said user can evaluate the impact of said provisions on the returns to equity holders, including investors and entrepreneurs.