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Indemnification

Indemnification refers to a contractual provision where one party agrees to compensate the other party for any losses, damages, or liabilities that may arise from a particular event or transaction. In the context of startup investments, indemnification clauses are often included in investment agreements to protect investors from losses resulting from the startup’s actions, such as breach of contract, infringement of intellectual property rights, or misrepresentations in financial statements. The extent of indemnification can vary depending on the specific terms of the agreement and the nature of the transaction.