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In the book, the importance of terms and exits in investment is highlighted. When investors put 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 the money being invested is real and needs to be used effectively to grow into more money. Investors need to know how their money will be used, how they can get it back when good things happen, and ultimately, how it will benefit them in the future.