One of the most ambiguous and dangerous terms in a venture debt agreement. the Investor Abandonment Clause can result in the startup being declared in default of the loan. This term is typically used by a bank to create an event of default if the company is not performing. The venture debt lender can call or email the startup’s investors and ask them to put more money into the company. If the investors decline or don’t follow through with an additional investment to the bank’s satisfaction, the bank can put the company into default and pursue remedies including foreclosure. Banks often say they rarely invoke the Investor Support clause, which is true. However, the bank requires this term so that they can use it or at the very least create leverage. This clause can also create a lot of investor leverage to the Founders detriment because the only way to escape foreclosure is to have insiders write another check.