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In the video, the importance of investment terms is emphasized, highlighting that investors do not simply hand over funds without conditions. Each investment involves a set of terms that defines the relationship between the investor and the company. Investors often choose to invest their money instead of spending it elsewhere because they anticipate growth. Thus, it's crucial for them to understand how their funds will be utilized and the conditions for retrieving their investments when the company succeeds. Clear terms are essential to ensure accountability and transparency in the investment process.