Does It Tie Out? Towards Autonomous Legal Agents in Venture Capital
Before closing venture capital financing rounds, lawyers conduct diligence that includes tying out the capitalization table: verifying that every security (for example, shares, options, warrants) and issuance term (for example, vesting schedules, acceleration triggers, transfer restrictions) is supported by large sets of underlying legal documentation. While LLMs continue to improve on legal benchmarks, specialized legal workflows, such as capitalization tie-out, remain out of reach even for strong agentic systems. The task requires multi-document reasoning, strict evidence traceability, and deterministic outputs that current approaches fail to reliably deliver. We characterize capitalization tie-out as an instance of a real-world benchmark for legal AI, analyze and compare the performance of existing agentic systems, and propose a world model architecture toward tie-out automation-and more broadly as a foundation for applied legal intelligence.
694a52e5335742716e9323de
Pierre Colombo
694a52e5335742716e9323df
Malik Boudiaf
694a52e5335742716e9323e0
Allyn Sweet
694a52e5335742716e9323e1
Michael Desa
694a52e5335742716e9323e2
Hongxi Wang
694a52e5335742716e9323e3
Kevin Candra
694a52e5335742716e9323e4
Syméon del Marmol
Does It Tie Out? Towards Autonomous Legal Agents in Venture Capital
Before closing venture capital financing rounds, lawyers conduct diligence that includes tying out the capitalization table: verifying that every security (for example, shares, options, warrants) and issuance term (for example, vesting schedules, acceleration triggers, transfer restrictions) is supported by large sets of underlying legal documentation. While LLMs continue to improve on legal benchmarks, specialized legal workflows, such as capitalization tie-out, remain out of reach even for strong agentic systems. The task requires multi-document reasoning, strict evidence traceability, and deterministic outputs that current approaches fail to reliably deliver. We characterize capitalization tie-out as an instance of a real-world benchmark for legal AI, analyze and compare the performance of existing agentic systems, and propose a world model architecture toward tie-out automation-and more broadly as a foundation for applied legal intelligence.
Capitalization tie-out in legal diligence is a complex task that current agentic systems struggle to automate due to its multi-document reasoning and evidence traceability requirements.
capitalization table securities shares options warrants issuance terms vesting schedules acceleration triggers transfer restrictions multi-document reasoning evidence traceability deterministic outputs legal AI world model architecture tie-out automation applied legal intelligence