Fundraising & Equity
No-Shop & Exclusivity Clauses in Term Sheets
Collated by Harry Prabandham
Curated by Rubric Financial
1 / 3
What No-Shop Means
- A no-shop (exclusivity) clause prohibits the company from soliciting or engaging with other investors for a specified period after signing a term sheet
- Standard duration is 30-45 days — enough time for the lead investor to complete diligence without the founder shopping the term sheet to competitors
- During the no-shop period, you cannot seek competing offers, share the term sheet with other investors, or negotiate parallel deals
- Violating a no-shop clause can kill the deal and damage your reputation in the investor community permanently
Related Resources
Fundraising & Equity
Board Pack Essentials
Build investor-ready board packs that communicate your startup's performance clearly and build confidence with your board of directors.
Fundraising & EquityThe Advisor Equity Trap: Protecting Your Cap Table
How advisory equity quietly destroys cap tables — and the right way to structure advisor relationships that deliver real value without giving away millions.
Fundraising & EquityHow Long Does Fundraising Take?
Realistic timelines for each funding stage, when to start the process, and how to structure a fundraising sprint that creates competitive dynamics.
