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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:

1. Valuation + Ownership Table

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.

2. Board Composition

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?

3. Protective Provisions

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.

4. Liquidation Preferences

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.

5. Option Pool Mechanics

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.

6. Founder Vesting / Re-Vesting

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.

7. Pro Rata Rights

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.

8. Information Rights

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.

9. Use of Proceeds

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.

10. Special Terms (aka: the “things that always cause confusion later”)

This is your catch-all for whatever’s unique to your deal:

  • Are you cleaning up SAFEs? Be specific about how they convert.
  • Are there any side letters or advisory shares? Call them out.
  • Is there a milestone-based tranche? Spell out the terms.

Real world trick: If it affects control, economics, or perception — it belongs in the term sheet.

Bottom line:

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.

That’s why we use Aracor to match term sheets against final documents.

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.

You Can’t Trust AI Without Security. That’s Why We Built Aracor Differently.

Everyone’s racing to bolt AI onto the enterprise stack. But few are asking the real question:

Can we trust what we’re building on?

At Aracor, we didn’t start with LLM hype or generic copilots. We started with threat models — because if you’re handling deal data, legal strategy, or sensitive financials, the cost of a breach isn’t just a PR event. It’s a deal collapse.

We Designed Aracor for the Work That Actually Matters

We built a security architecture we’d trust with our own transactions.

Picture a car designed for impact — engineered with reinforced steel framing, internal roll cages, and calculated crumple zones that channel force away from the core. That’s how we approached Aracor: not just sleek on the surface, but structurally secure at every layer.

1. Data stays locked down
 - Encrypted at rest and transit, no exceptions;
 - No shadow copies. No blind spots.

2. Access is earned, not assumed
- Role-based permissions. SSO. 2FA;
- Effectively practicing zero trust architecture in productive environments.

Model Flexibility That Doesn’t Compromise Control

Aracor is LLM-agnostic by design. We give clients the freedom to choose the right foundation models for the job — without sacrificing security or sovereignty.

One example: we support DeepSeek-R1, a powerful open-source model that performs on par with commercial offerings. But here’s the difference: we deploy it entirely within private, secure infrastructure — with zero reliance on Chinese servers or third-party data endpoints.

Why does agnosticism matter?Because it’s not just about preference — it’s about resilience.

If a model vendor goes offline, introduces regressions, or becomes compromised, Aracorswitches—automatically. No service interruption. No scrambling.

Your data flows. Your deal keeps moving. Your AI doesn’t break.

Security That Doesn’t Just Protect — It Enables

Security isn’t just a shield. At Aracor, it’s what makes our platform usable for real Deal Intelligence — the kind involving:

  • Redacted documents
  • Deal docs
  • Term sheets
  • Liquidation waterfalls
  • Diligence rooms
  • And other high-sensitivity workflows

Unlike most vendors, we don’t train on your data.

We don’t leave audit gaps.

We don’t hope nothing breaks — we assume it might, and plan for it.

Future-Proof AI Ethos

LLM prompt injection. Embedded exploits.

We’ve already threat-mapped them. We’re building protections now — not after something hits the headlines.

Aracor is SOC 2 compliant, supports FIPS-compliant encryption standards, and is GDPR compliant.

The Bottom Line

Secure AI infrastructure
Trusted for M&A, legal ops, and venture finance
LLM-agnostic, including an option for secure deployments of DeepSeek-R1
No data leakage, no foreign dependencies
Built for modern enterprise workflows

Business only moves as fast as the system it’s built on.

Aracor is that system.

Aracor’s Dual-Mode AI: Precision When You Need It, Exploration When It Counts

In high-stakes dealmaking, AI must be both precise and adaptable. Aracor delivers that with two distinct operating modes:

Pro Mode

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.

Discovery Mode

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.

Use Case: Cross-Border M&A Deal Evaluation

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:

  • Aracor brings in Brazilian regulator filings, regional press, and NGO reports.
  • You ask: “Has language like this triggered enforcement in the past five years?” It finds precedent cases and risk commentary.
  • You tag insights and return to Pro Mode to package a structured risk memo for committee review.

Why Aracor Wins Where General LLMs Fall Short

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:

  • Pro Mode confines analysis to your deal room. Nothing extra.
  • Discovery Mode lets you intentionally widen the lens, traceably.That switchable control gives deal teams both rigor and reach — no compromises.

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.

The Challenge of Imperfect Documents

Legal professionals and corporate teams frequently encounter scanned contracts, handwritten notes, and poorly formatted documents that complicate their workflows. These imperfect documents often require time-consuming manual transcription, leading to errors and inefficiencies. Extracting accurate information from these files is a significant challenge, often resulting in delays, compliance risks, and increased operational costs.

Aracor’sAI-powered OCR technologyeliminates these obstacles by transforming unstructured, low-quality documents into clear, structured, and actionable data. Whether dealing with blurry scans, faded print, or complex formatting, this advanced solution ensures that every word and detail is captured with high accuracy. For legal professionals and businesses leveragingAI legal software, legal AI assistants, and document review automation, Aracor’s OCR is a game-changer in enhancing efficiency and accuracy.

What is OCR Technology?

OCR, or Optical Character Recognition, is a technology that converts different types of documents including scanned paper files, PDFs, and images into editable and searchable data. This capability is crucial for organizations that rely on fast and accurate access to critical information.

Traditional OCR tools often struggle with inconsistencies, distortions, and handwritten content, making them unreliable for AI for legal workflows. However, modern AI legal solutions, such as Aracor’s OCR, go beyond simple text recognition. They use machine learning and pattern recognition to intelligently process and structure extracted information, making it easily accessible for contract redlining with AI, automated contract drafting, and streamlining contract management with AI.

How Aracor’s OCR Technology Works

Aracor’s OCR technology leveragesartificial intelligence and machine learning to scan, recognize, and extract text from various document formats, including PDFs, images, and scanned copies. Unlike conventional OCR tools that struggle with distorted fonts, handwritten content, or complex formatting, Aracor’s solution adapts to these challenges with exceptional precision.

By identifying text patterns and distinguishing between printed and handwritten content, Aracor’s OCR refines and enhances extracted text, ensuring accuracy in processing legal and business documents. Once digitized, the data becomes searchable, editable, and ready for integration into automated legal workflows, AI legal assistants, and contract review automation. This technology significantly reduces the need for manual data entry, helping legal professionals efficiently manage due diligence, compliance audits, and contract negotiations.

Why OCR Matters for Legal and Business Teams

For legal professionals, accuracy is non-negotiable. A single misinterpretation or missing clause in a contract can lead to serious financial or compliance risks. Aracor’s OCR technology ensures precise text extraction, enabling legal AI assistants to analyze documents with greater confidence.

Legal teams benefit from AI contract review and automated contract drafting, allowing them to efficiently handle large volumes of documents. Compliance officers can use structured data to meet regulatory requirements, while business executives gain faster access to contract insights, eliminating the need for manual review. By integrating AI for legal into document workflows, organizations can enhance productivity and minimize errors, making contract management and due diligence more efficient.

Enhancing Productivity with Intelligent Document Processing

Aracor’s OCR technology is a critical component of AI legal software that enables professionals to streamline their document processing workflows. Instead of manually searching for contract terms, legal teams can quickly locate relevant clauses, compare contract language across multiple documents, and extract obligations using legal AI assistants.

The integration of document review automation and AI contract review eliminates the inefficiencies associated with manual document handling. By automating these processes, legal teams experience fewer errors, faster processing times, and improved overall efficiency. With contract redlining with AI, professionals can highlight discrepancies and inconsistencies with precision, ensuring airtight contract management.

The Future of Document Accuracy with Aracor

As organizations continue digitizing their operations, the need for reliable document accuracy becomes more critical. Aracor’s AI-powered OCR technology is at the forefront of this transformation, ensuring that imperfect documents no longer slow down legal and business processes. From due diligence to compliance audits, contract negotiations, and automated legal workflows, AI-powered OCR allows organizations to extract meaningful insights from any document type.

By leveraging AI legal solutions, businesses can optimize their contract management processes, reducing risks and improving decision-making. The ability to process and analyze legal and corporate documents with high accuracy gives professionals a competitive advantage in a rapidly evolving digital landscape.

With Aracor’s OCR technology, document processing is no longer a challenge. It is an opportunity to achieve greater accuracy, efficiency, and scalability. To experience the benefits of AI-driven OCR, schedule a demo today.

The Challenge of Document Overload in Due Diligence

Legal and corporate professionals often deal with massive volumes of documents spread across multiple folders. Reviewing these files individually can be time-consuming, inefficient, and prone to oversight. Critical insights may be buried deep within contracts, compliance files, or financial records, making it difficult to see the bigger picture.

Aracor’sHolistic Contract Analysis is an AI legal solution that allows users to analyze entire folders cohesively, transforming automated legal workflows. Rather than manually reviewing each document, legal teams can instantly process and extract key insights across all files, ensuring no critical detail is missed. This feature provides a structured and efficient approach to due diligence, enabling professionals to make data-driven decisions with confidence.

How Holistic Contract Analysis Works

Aracor’s Holistic contract Analysis leverages AI legal software to scan, categorize, and analyze documents within an entire folder. It identifies crucial clauses, obligations, and risks across multiple files, presenting the results in an easy-to-understand format. This eliminates the need for manual searches and allows legal teams to focus on strategic decision-making instead of administrative tasks.

Users can seamlessly assess compliance reports, contract obligations, and financial agreements within a unified framework. By connecting related documents and surfacing key findings, Holistic Folder Analysis ensures legal professionals can quickly grasp patterns, discrepancies, and compliance risks.

Why It Matters for Due Diligence

Due diligence is all about efficiency, accuracy, and comprehensive oversight. Traditional document review methods often involve fragmented analysis, where legal teams must sift through documents one by one. This not only slows down decision-making but also increases the risk of missing vital information.

Holistic Folder Analysis eliminates these inefficiencies by providing a big-picture view while maintaining granular accuracy. Whether handling M&A transactions, AI contract review, regulatory compliance checks, or contract negotiations, this feature enables legal professionals to move faster while ensuring thorough review and compliance adherence.

Holistic Reporting and Analysis

Beyond document review, Holistic Contract Analysis powers Holistic Reporting and Analysis, allowing users to generate detailed reports that provide comprehensive insights. These reports encompass portfolio evaluations, compliance assessments, and key findings that empower legal teams to make well-informed decisions at scale.

With AI powered document review automation, professionals can easily compare contract terms, identify risks, and streamline contract management with AI, without spending countless hours on manual review. The ability to generate reports instantly enhances workflow efficiency and allows teams to focus on higher-value tasks

The Future of Document Review

As legal workflows become more complex, Holistic Contract Analysis is transforming how professionals manage due diligence, contract analysis, and compliance evaluations. By eliminating inefficiencies and providing actionable insights across entire document sets, this feature helps legal teams stay ahead in a fast-moving world.

With Aracor, document review is no longer a bottleneck. Experience the power of Holistic Contract Analysis today. Schedule a demo.

One of the biggest blind spots in legal and deal work?

We’re great at closing. We’re terrible at maintaining

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.

That’s why we built Aracor to solve problems like this

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.

Deal Foresight™ Starts Here.

Stop relying on hindsight.

Aracor delivers real-time insights, and risk detection
built for deal teams across family office, in-house, private equity, and venture capital.