Extract data from term sheets

A term sheet is the summary of the terms a deal will run on, written before the lawyers draft the definitive agreements. In a venture financing it fixes the valuation, the amount raised, the security, the liquidation preference, and the board seats; in an acquisition or a debt facility it sets the price, the structure, and the closing conditions. Founders, investors, and the counsel on both sides treat it as the reference every later document is checked against, because if a definitive agreement drifts from the signed sheet, someone has to explain why. The National Venture Capital Association publishes model financing documents precisely so the market shares one structure, yet each signed sheet still restates its terms in its own order and its own wording. The difficulty is that the money arrives in pieces and the control terms decide as much as the price. A 5,000,000 USD Series A at a 20,000,000 USD pre-money valuation might fund a 3,000,000 USD first-close tranche and a 2,000,000 USD milestone tranche, and the two tranches have to reconcile to the round. A 1x non-participating liquidation preference, two of five board seats, and a list of protective provisions shape who controls the company as much as the headline valuation does. Most of a term sheet is non-binding, with exclusivity and confidentiality the binding exceptions, while the key conditions, satisfactory due diligence, completed legal documentation, and any regulatory clearance, gate the close. Representations and warranties are summarized on the sheet and expanded later in the definitive stock purchase agreement. Talonic reads the term sheet and returns the parties, the transaction type and value, the funding schedule, the key conditions, and the CUAD-style clauses, confidentiality, cap on liability, IP ownership assignment, and change of control, as fields, keeping the tranches and the conditions as tables. A Series A term sheet dated 2026-06-10 between Northstar Ventures and Lumen Systems Inc., raising 5,000,000 USD across a 3,000,000 USD first close and a 2,000,000 USD milestone tranche, with a 30-day exclusivity period and an expiry of 2026-06-30, loads into a deal system so the amount, the schedule, and the closing conditions read as fields rather than bullets. Talonic structures the terms as written and does not judge whether a provision binds.

What gets extracted from term sheets

How extraction works for term sheets

Term sheets are produced from deal templates such as the NVCA model documents and from counsel, and the economic and control terms sit as bullets whose order shifts from one sheet to the next. Talonic classifies the sheet and aligns it to the contract schema kept in the Field Registry, whose clause set follows the CUAD taxonomy, so the transaction value, the funding schedule, the exclusivity period, and the representations each resolve to their own field. The transaction value is typed as a number in its currency and reconciled against the funding schedule, so a 5,000,000 USD round released across two tranches is checked to foot rather than trusted. Key conditions come back as a table, the representations and warranties are captured as items tagged with the party that makes each, and the effective and expiration dates parse to ISO 8601 so the offer window is legible. Confidence scores and source-region pointers accompany every value under DIN SPEC 91491, so a founder or an investor can verify a tranche amount or a closing condition against the signed sheet. Talonic returns the terms as written and does not decide whether a provision is binding or enforceable.

Sample extraction

A Series A venture financing term sheet

{
  "document_number": "TS-2026-0610",
  "document_date": "2026-06-10",
  "effective_date": "2026-06-10",
  "expiration_date": "2026-06-30",
  "party_a.name": "Northstar Ventures",
  "party_b.name": "Lumen Systems Inc.",
  "transaction_type": "series_a_equity_financing",
  "transaction_value": 5000000,
  "transaction_currency": "USD",
  "payment_terms": "Two tranches: 60% at first close, 40% on milestone acceptance",
  "exclusivity_period": "30 days",
  "confidentiality_clause": true,
  "cap_on_liability": "Aggregate investor liability capped at the amount invested",
  "representations_warranties": "Company reps on capitalization, title, and litigation, to be expanded in the definitive stock purchase agreement",
  "ip_ownership_assignment": "All founder intellectual property assigned to the Company before closing",
  "governing_law": "State of Delaware",
  "payment_schedule": [
    {
      "installment_number": 1,
      "due_date": "2026-07-15",
      "amount": 3000000,
      "percentage": 60,
      "description": "First close"
    },
    {
      "installment_number": 2,
      "due_date": "2026-10-15",
      "amount": 2000000,
      "percentage": 40,
      "description": "Milestone tranche on product release"
    }
  ],
  "key_conditions": [
    "Satisfactory due diligence",
    "Completed legal documentation",
    "Regulatory clearance"
  ],
  "termination_conditions": [
    "Failure to close by the long-stop date",
    "Material adverse change in the Company"
  ]
}

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