In the high-stakes world of venture capital, private equity, and cross-border M&A, the devil is often in the (translated) details. Business today is inherently global — term sheets originate in Singapore, diligence comes from Frankfurt, and negotiations unfold over WhatsApp in Dubai. Yet language remains one of the most underestimated obstacles to deal velocity and risk mitigation.
Aracor AI is changing that.
At the core of Aracor’s platform is multilingual document review powered by advanced AI translation. But Aracor’s goal isn’t to translate War and Peace into Spanish — it’s to help dealmakers read, understand, and act on high-stakes documents — NDAs, MSAs, shareholder agreements, LPAs, convertible notes — across languages and jurisdictions. In short: Aracor enables cross-lingual dealmaking without delay.
It preserves intent, nuance, and legal structure across more than 30 languages. English to Mandarin? Seamless. Arabic to French? Structured. Korean diligence in a London data room? Instantly legible.
Where other platforms falter with legalese and business context, Aracor thrives. Its models are trained on financial, legal, and regulatory corpora — analyzing and translating at enterprise scale.
Crucially, Aracor lowers the need to rely on foreign counsel just to interpret documents — saving firms time, legal overhead, and outside costs while enabling internal teams to triage faster and smarter.
And there’s more coming: Dropbox, Google Drive, SharePoint, Box, and more — direct integration with your document vaults is planned for Version 2.
In a world where deals don’t wait for interpreters, Aracor helps global capital move at the speed of thought — no translator required.
By the Aracor Team
As global focus sharpens on AI governance — including the Council of Europe’s new Framework Convention on Artificial Intelligence (https://www.coe.int/en/web/artificial-intelligence/the-framework-convention-on-artificial-intelligence) — it’s clear AI is no longer just a tech issue. It’s a capital markets issue.
The treaty, like its cousins in Brussels and DC, is draped in the usual virtues — human rights, democracy, and rule of law. But for those in venture, private equity, and M&A, it signals a future where speed collides with sovereignty, and legal ambiguity becomes a new kind of friction.
Aracor wasn’t built to debate AI ethics — it was built to accelerate capital. Our tools give CEOs and in-house counsel leverage by mapping legal DNA, flagging regulatory risk, and helping deals move through complexity without getting stuck in it.
Example: a U.S. firm targets a European AI startup. One algorithm is flagged “high-risk” under EU law. The deal freezes. With Aracor, it’s flagged early, structure is adjusted, and the deal moves. That’s not compliance. That’s velocity.
The West may regulate. China may ignore. But advantage belongs to those who understand not just the law — but its lineage, incentives, and escape hatches.
And most importantly: what’s required to close deals and create value — for companies and their customers.
The National Venture Capital Association (NVCA) model term sheet is a solid starting point. But deals don’t happen in a vacuum — and real-world nuance matters.
Here are 10 things I always recommend including in a term sheet to save you from confusion, drift, or unnecessary friction later:
Yes, include pre-money valuation and price per share.
But also attach a cap table showing actual post-close ownership, fully diluted.
Too many deals get tripped up arguing about percentages that were “understood” differently.
Pro tip: Make sure it includes the option pool and any convertible instruments still outstanding.
Specify exactly how many seats there are, who appoints whom, and whether seats are tied to specific share classes or % thresholds.
Real world trick: Add what happens in the next round. Do current investors lose seats? Keep them as observers?
Define what actions require preferred consent — mergers, new equity, debt, hiring/firing execs, etc.
Bonus tip: Don’t just say “standard NVCA list.” Call out any non-standard protections so they don’t get buried later.
1x, participating, non-participating, capped? Get specific.
Real world risk: If you’re stacking multiple rounds, clarify whether preferences are pari passu or senior by class. This becomes a huge deal in down exits.
Will the option pool come from the pre-money or post-money? And how big is it?
Pro tip: Get both sides to agree to an actual option budget, not just a % placeholder — especially if you’re hiring aggressively post-close.
Are founders fully vested? Will any shares re-vest? What happens if someone leaves?
Real world trick: If there’s a cliff or accelerated vesting, define the triggers. Don’t assume everyone reads “single trigger” the same way.
Spell out who gets to participate in future rounds — and for how long.
Pro tip: If early investors are getting squeezed in future pro rata, this is the place to protect them.
Define what investors get and how often — financials, board decks, budgets.
Real world trick: If someone’s putting in real money but won’t have a board seat, use this section to keep them informed without making the board table too crowded.
You don’t need a spreadsheet, but a basic breakdown helps avoid future friction.
Pro tip: Call it out if any founder liquidity or debt paydown is part of the round — no one likes surprises here.
This is your catch-all for whatever’s unique to your deal:
Real world trick: If it affects control, economics, or perception — it belongs in the term sheet.
The best way to protect a deal is to document alignment early.
The worst mistake? Treating the term sheet as a handshake, then being surprised when final docs don’t match.
It catches the drift, flags missing terms, and makes sure what you sign at the end is what everyone agreed to at the start.
Because clean deals don’t start with clean term sheets.They start with clear ones.
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In high-stakes dealmaking, AI must be both precise and adaptable. Aracor delivers that with two distinct operating modes:
A controlled environment with strict guardrails. It only thinks from the documents and data you provide — contracts, diligence reports, financials. No guessing, no outside sources. Just structured, repeatable analysis.
A flexible sandbox for open-ended inquiry. It draws on broader sources — regulations, market chatter, news — and lets you test assumptions, check external context, or dig into non-obvious risks.
You can shift between these modes instantly, without losing your place in the workflow.
You’re assessing a target company in a cross-border M&A deal:
- In Pro Mode, Aracor analyzes your internal corpus: the share purchase agreement, ESG disclosures, board minutes, and jurisdiction-specific compliance docs. It operates strictly within that dataset, ensuring reliable, auditable output.
- Then your risk team flags vague ESG language tied to Brazilian operations. You’re unsure if similar language has triggered enforcement elsewhere.
You switch to Discovery Mode:
General-purpose LLMs are often too open-ended for M&A work. They pull from public sources, risking hallucinations or unverifiable claims. You get text, not trusted insight.
Aracor is purpose-built:
One of the biggest blind spots in legal and deal work?
I’ve seen it everywhere — from early-stage companies to complex, PE-backed portfolios:
Everyone obsesses over the signing. And then the deal docs get zipped into a folder, buried in a drive, and forgotten — until someone must dig them up in a crisis.
But here’s the thing: your law firm moves on. You don’t.
The general counsel, the CFO, the investor — you are the one who must live with the deal.
You’re the one fielding questions. Tracking veto rights. Checking compliance. Untangling what got signed when no one can remember which version was final.
Legal portfolio management isn’t just about avoiding mistakes. It’s about staying in control of the structures you’ve already built.
Who has what board rights across your cap table?
When do special veto powers expire — or kick in?
How do distribution waterfalls work across a multi-entity structure?
What quiet landmines are sitting in your old side letters, convertible notes, or carve-outs?
If you can’t answer these quickly, you’re not managing your portfolio.You’re just constantly reacting to it.
Recently, I talked to a deal team whose lawyer retired and left no successor to manage past deals. They were especially concerned about their new counsel's ramp-up period — particularly around buried investor side letters, MFN clauses, and nuanced investor rights hidden deep in their portfolio.
Not just to pull clauses. But to guide teams through the structural reality of the deal: Board control. Voting dynamics. Liquidity rights. True-up provisions. Waterfall math.
Across dozens — or hundreds — of contracts, over time.
Aracor doesn’t just store your deals. It understands them. So you can respond with confidence — anytime someone asks, “What are we actually obligated to do here?”
If you're managing post-close complexity, there's a better way.