The no-shop clause is mostly a part of the final term sheet to prevent the company from seeking investment proposals from other investors.

First of all, please note that a term sheet is non-binding. So you would not want to have a too long no-shop clause as the investor might take a long time for due diligence and drop out at the last moment. Usually, a period of 45 to 60 days is ideal. The time-bound duration ensures that the investor gets the diligence done in a reasonable duration.

You should ensure that if the investor terminates the process, the no-shop clause expires immediately. You might also consider asking for a carve-out for acquisitions. Even if you are not looking to be acquired, you do not want to restrict the acquisition conversations while fundraising.

Other than the above points, this is not a very significant clause. It might look that this is a one-directional commitment, but if it happens the other way round, then there would be a negative reputational impact for the investor and is thus not common.