No Shop Clause: Serial or Unilateral Monogamy?

Tom Evslin:

The standard no shop clause as Brad accurately quotes it provides that the company can’t look for other investors for a period of thirty to forty-five days. Brad calls this “serial monogamy” while the final deal is being negotiated and says that this is bidirectional because the VC is agreeing to act expeditiously and try to get the deal done within the window.

This is actually unilateral monogamy since the VC is still free to look at providing financing to competitors of the company during this time.

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