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‘No shop’ clause

The clause in a term sheet that states to the founder that they are not to share the term sheet with other investors to receive a competing offer. This is a standard clause. The etiquette gives founders about a week or less to decide on a term sheet to limit the time founders have to unofficially ‘shop around’ the deal.

The clause in a term sheet that states to the founder that they are not to share the term sheet with other investors to receive a competing offer. This is a standard clause. The etiquette gives founders about a week or less to decide on a term sheet to limit the time founders have to unofficially ‘shop around’ the deal.