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startup_valuation__vc_method_irr

Calculate the required exit value for a startup investment using the venture capital method, based on investment amount, target IRR, and time horizon.

Instructions

[startup-valuation] vc_method_irr

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
yearsYes
exit_valueYes
investmentYes
required_irrYes
Behavior1/5

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

With no annotations, the description should disclose behavioral traits. It does not mention whether the tool returns a single value, the basis for the calculation, or any assumptions. The description is insufficient.

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

Conciseness1/5

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

While short, the description is not appropriately sized because it lacks all useful information. The single fragment does not earn its place as it adds no value.

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 the complexity (4 required parameters, no schema descriptions, no annotations, no output schema), the description is entirely incomplete. It provides no context for correct usage.

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

Parameters1/5

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

Schema coverage is 0%, and the description adds no meaning to any of the 4 parameters (exit_value, years, required_irr, investment). The agent cannot infer parameter roles or formats.

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

Purpose2/5

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

The description is a tautology: it merely repeats the tool's name in brackets. It does not specify what the tool actually does (e.g., compute post-money valuation using IRR). It only hints at the domain and method.

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

Usage Guidelines1/5

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

No guidance is provided on when to use this tool versus siblings like startup_valuation__berkus or startup_valuation__vc_method. The description gives no context for selection.

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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