Most Favored Nation (MFN)

A provision that ensures an investor receives terms at least as favorable as those given to other investors in the same or future funding rounds.

Considerations

• Scope of applicability (e.g., current round only or future rounds)

• Types of terms covered (e.g., price, rights, preferences)

• Duration of MFN rights

• Exceptions or carve-outs

• Impact on negotiating flexibility with future investors