Venture capitalists are increasingly incorporating 'pay to play' provisions into term sheets, marking a significant trend in the industry. According to new data from law firm Cooley, these provisions have reached record numbers. 'Pay to play' terms require existing investors to participate in future funding rounds to avoid having their ownership stakes diluted. This trend, highlighted by a recent piece from Dan Primack, has been growing since late 2022, affecting both venture capitalists and angel investors.