No-Shop Clause

Definition

A no-shop clause in a term sheet forbids the company from soliciting or negotiating competing offers for a set period, typically 30 to 60 days, while the investor completes diligence.

Wie es im Fundraising vorkommt

Signing a term sheet with a no-shop effectively ends your process; get competing term sheets on the table before signing, not after.

Häufig gestellte Fragen

Are no-shop clauses negotiable?

The duration is: shorter windows (30 days) protect founders from being tied up by a slow investor.

Is the term sheet itself binding?

Mostly not, except clauses like no-shop and confidentiality; the economic terms bind only at closing documents.

Verwandte Begriffe

Term SheetDue DiligenceLead Investor

Setzen Sie diesen Begriff ein

Definitionen gewinnen nur dann Verhandlungen, wenn Sie sich in einer befinden. Finden Sie die Investoren, die Ihre Phase finanzieren, und beginnen Sie das Gespräch.

Datenbank der Investoren durchsuchen