No-Shop Clause

정의

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.

투자유치 시 활용 방법

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

자주 묻는 질문

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.

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