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The importance of terms and exits in investments is emphasized in the book. When an investor puts money into a company, it comes with a set of terms that define the relationship between the investor and the company. This is crucial as it involves real money that could be used for other purposes. The investor needs to know how the money will be used, how it will be returned, and what will happen when good things occur. Ultimately, the goal is for the investment to grow and provide returns for the investor.
