# Vc Term Sheet Waterfall

> Calculate Indonesian venture capital startup exit liquidation preference waterfalls across share classes (Seniority, Pari Passu, Participating with Caps, Non-Participating).

- Skill: `adamriofc/vc-term-sheet-waterfall` (Agent Skill)
- Install (CLI): `npx skillmds@latest add adamriofc/vc-term-sheet-waterfall`
- Raw SKILL.md: https://api.skillmd.com/api/skills/adamriofc/vc-term-sheet-waterfall/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: adamriofc (https://skillmd.com/u/adamriofc)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/adamriofc/vc-term-sheet-waterfall

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# VC Startup Exit Liquidation Preference Waterfall

Calculates share payout distributions for Indonesian venture capital investor tiers (Series Seed, Series A, Series B) and common shareholders (founders/employees) during M&A or exit events under Indonesian Company Law (UU No. 40/2007).

## Waterfall Distribution Mechanics
1. **Conversion Evaluation**: Evaluates whether non-participating preferred shares achieve higher returns by converting into Common Shares.
2. **Seniority Preference Waterfall**: Distributes liquidation preference payouts in order of tier seniority (e.g. Series B ➔ Series A ➔ Seed).
3. **Participating Pro-Rata Distribution**:
   - **Participating Preferred**: Receives preference payout **plus** pro-rata share of remaining exit proceeds.
   - **Cap Limits**: Enforces participation cap multiples (e.g. 2x or 3x Cap limit on total investment return).
   - **Non-Participating Preferred**: Does not participate in remaining proceeds after receiving preference payout unless converted.
4. **Common Shareholders Pool**: Remaining exit proceeds after all preferred obligations are distributed to founders and ESOP pools.

## Hybrid Execution Model
Pass parameters to `engines/term-sheet-waterfall.js`:
* `calculateExitWaterfall({ exitValuation, investorTiers, commonOwnershipPercent })`

## Worked Example
Input: Exit Valuation Rp 100.000.000.000 (Rp 100B).
- Series B: Rp 20B investment, 1.0x Senior preference, Participating, 15% ownership.
- Series A: Rp 10B investment, 1.0x Pari Passu preference, Non-Participating, 20% ownership.
- Founders / Common: 65% ownership.
Output:
- Series B preference payout: **Rp 20.000.000.000**.
- Series A converts to Common (20% of 100B = 20B > 10B preference payout).
- Remaining pool after B preference = **Rp 80.000.000.000**.
- Series B Participating share (15% / 100%) = **Rp 12.000.000.000** (Total B payout = Rp 32B / 1.6x).
- Series A converted share = **Rp 20.000.000.000** (2.0x).
- Founders / Common share = **Rp 48.000.000.000**.