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startup_valuation__vc_method

Calculate startup post-money valuation and ownership percentage using the venture capital method. Input exit value, target return multiple, and investment.

Instructions

[startup-valuation] Post-money = exit / target return multiple; ownership = investment / post-money.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
exit_valueYes
investmentYes
target_multipleYes
Behavior2/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

The description states what is computed but does not disclose behavioral traits such as output format, assumptions (e.g., no dilution), or whether it returns both post-money and ownership. No annotations exist to fill gaps.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is a single concise line, front-loading the key formula. However, it may be too terse to be informative.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness1/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

Given zero schema coverage, no output schema, and no annotations, the description is severely incomplete. It lacks explanations of inputs, outputs, assumptions, and usage context, making it inadequate for agent invocation.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters2/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

With 0% schema coverage, the description fails to define parameters. The formula uses names like 'exit_value' but does not explain their meaning or units, leaving the agent without necessary context.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose4/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description gives a specific formula for post-money valuation and ownership percentage, indicating the tool calculates these values. It distinguishes from sibling tools like 'vc_method_irr' by omitting IRR, though not explicitly.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines2/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

No guidance on when to use this tool versus alternatives like startup_valuation__berkus or vc_method_irr. No prerequisites or context provided.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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