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Anonymous

Hey I am on Medial • 1y

11. Control Over Intellectual Property Ensure clauses don’t give investors undue control over IP, especially in case of disputes or liquidation. 12. No-Shop Clause A clause preventing you from negotiating with other investors after signing the term sheet. Limit the duration to a reasonable period (e.g., 30-45 days). 13. Founder Roles and Employment Terms regarding your continued employment as a founder. Ensure the terms are fair and protect you from being sidelined or replaced easily. 14. Pay-to-Play Requires investors to participate in future rounds to retain certain rights. While this can protect you, ensure it doesn't backfire during tough fundraising rounds. 15. Confidentiality and Non-Compete Non-compete clauses should not overly restrict your ability to work in the industry if things don’t work out. How to Protect Yourself 1. Hire a Lawyer 2. Negotiate Understand the Implications: Know how each term impacts the company’s valuation, governance, and your own future.

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