Explain Equity Terms
Activate for ANY equity, legal, or term sheet question related to startup investing or fundraising. Triggers include: "what is a SAFE", "explain this term sheet", "what does pro-rata mean", "what is liquidation preference", "explain anti-dilution", "ISO vs NSO", "what is a 83(b) election", "what is carried interest", "explain drag-along", "what is a valuation cap", "what does MFN mean", "explain convertible note vs SAFE", "what is a down round", "explain vesting cliff", "what does fully diluted mean", "term sheet question", "equity question", "what does this clause mean". Also triggers when a user pastes legal text from a term sheet, SAFE, or subscription agreement and asks what it means. Works on claude.ai and Claude Code.
Security AStatic scan found no risk patternsHow grading works ›
From the source SKILL.md
You are a startup attorney and former VC with 15 years of experience structuring deals. You have advised on 500+ term sheets, SAFE notes, and priced rounds. You explain legal and financial concepts in plain English without losing the critical nuances that matter in real deals.
What this skill does
Explain Equity Terms is a community-contributed Claude Code skill in the ai-tooling sub-category. It ships as a SKILL.md file that Claude Code auto-discovers under ~/.claude/skills/explain-equity-terms/ and loads when your prompt matches the skill's trigger.
Who uses this skill
The Explain Equity Terms Claude Code skill is built for Claude Code users and developers across all disciplines looking for general-purpose AI assistance. It's part of ClaudSkills (also referred to as Claude Skills or Claude Code Skills) — the open community-curated registry of 146,000+ SKILL.md files for Anthropic's Claude Code agent and the wider Claude ecosystem (Claude API, Claude Agent SDK).
How to install
Free
Manual install (2 steps)
mkdir -p ~/.claude/skills/explain-equity-terms
curl -L https://claudskills.com/skills/explain-equity-terms/SKILL.md \
-o ~/.claude/skills/explain-equity-terms/SKILL.md
Or just download SKILL.md directly and drop it into ~/.claude/skills/explain-equity-terms/. Claude Code auto-discovers it on next session.
Skills live at ~/.claude/skills/explain-equity-terms/SKILL.md on macOS/Linux, or %USERPROFILE%\.claude\skills\explain-equity-terms\SKILL.md on Windows. See the full install guide for step-by-step instructions.
Telegram
📱 Install from your phone or desktop Telegram
Open @claudskills_bot on Telegram, tap Open Desktop App, and the desktop app installs this skill for you. Or share the bot link with a colleague — they get the same one-tap install. Learn more →
Pro
One-click install via the desktop app
The ClaudSkills desktop app installs any skill directly into ~/.claude/skills/ with one click — no terminal required. Pro starts at $9/mo or $149 lifetime.
Pro
For the full experience including quality scoring and one-click install features for each skill — upgrade to Pro.
Frequently asked questions
How do I install the Explain Equity Terms Claude Code skill?
Install via the ClaudSkills desktop app (one click) or copy
SKILL.md from the source repository to
~/.claude/skills/explain-equity-terms/SKILL.md and restart Claude Code. Both flows are detailed at
claudskills.com/install/.
What does the Explain Equity Terms skill do?
Activate for ANY equity, legal, or term sheet question related to startup investing or fundraising. Triggers include: "what is a SAFE", "explain this term sheet", "what does pro-rata mean", "what is liquidation preference", "explain anti-dilution", "ISO vs NSO", "what is a 83(b) election", "what is carried interest", "explain drag-along", "what is a valuation cap", "what does MFN mean", "explain convertible note vs SAFE", "what is a down round", "explain vesting cliff", "what does fully diluted mean", "term sheet question", "equity question", "what does this clause mean". Also triggers when a user pastes legal text from a term sheet, SAFE, or subscription agreement and asks what it means. Works on claude.ai and Claude Code.
Is this skill free to install?
Yes. ClaudSkills is an open registry — every skill keeps its source repository's license, and manual install via copy is free. ClaudSkills Pro ($9/mo, $79/yr, or $149 one-time) adds one-click install via the desktop app and a multi-signal Quality Score.
When should I use the Explain Equity Terms skill?
Use Explain Equity Terms when your Claude Code task falls under the General category — specifically in the ai tooling area. Claude Code auto-discovers installed skills and invokes the right one based on the task description, so you can also ask Claude directly (e.g. "use Explain Equity Terms" or describe the task and let Claude pick). Browse related skills at
/category/general/.
What is a Claude Code skill and how does the Explain Equity Terms skill fit in?
A Claude Code skill is a
SKILL.md file that lives under
~/.claude/skills/<name>/ and tells the Claude Code CLI agent how to perform a specific task (instructions, prompts, allowed tools). Skills are auto-discovered at session start. Explain Equity Terms is one of 67,000+ skills indexed in the open ClaudSkills catalog, classified under the General category. Learn more at
/learn/what-is-a-claude-skill/.
Cite this skill
If you reference this skill in a blog post, paper, or documentation, you can cite it as:
APA
ClaudSkills. (2026). Explain Equity Terms [Claude Code skill]. ClaudSkills. https://claudskills.com/skills/explain-equity-terms/
BibTeX
@misc{explain-equity-terms-2026,
author = {ClaudSkills},
title = {Explain Equity Terms [Claude Code skill]},
year = {2026},
publisher = {ClaudSkills},
url = {https://claudskills.com/skills/explain-equity-terms/}
}Embed this skill
Promote, attribute, or link this skill from your own README, blog post, or documentation. All three snippets are free to use — no sign-up, no API key. More distribution surfaces →
Badge
[](https://claudskills.com/skills/explain-equity-terms/?utm_source=badge&utm_medium=readme&utm_campaign=skill_badge)
<script>
<script src="https://claudskills.com/embed/explain-equity-terms.js" async></script>
<iframe>
<iframe src="https://claudskills.com/embed/explain-equity-terms.html" width="100%" height="160" frameborder="0" loading="lazy" title="ClaudSkills: Explain Equity Terms"></iframe>
Security scan
Grade A · scanned 2026-07-06 — free static scan against the OWASP Agentic Skills Top 10.
No risk patterns were found in any of the ten OWASP-aligned categories. How grading works ›
- ✓ Prompt injection
- ✓ Data exfiltration
- ✓ Supply chain
- ✓ Reverse shell
- ✓ Credentials
- ✓ Execution
- ✓ Filesystem
- ✓ Persistence
- ✓ Obfuscation
- ✓ Network
Show this grade on your repo (click to copy):
[](https://claudskills.com/skills/explain-equity-terms/#security)
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