Firsr buy right of my own idea

Hi All, I met up with an early investor and after the discussion I understood the following: 1 they want 20% (200k) undiluted until IPO 2 they will develop the product and hold the IP 3 my start up has the first right to buy the IP 4 parts of my equity will be diluted for future investors It was explained that the first buy right enables higher valuation of my company for subsequent fundraising round so my company can buy the IP outright when new investors come onboard. It is an assurance for the early investor to receive guaranteed return. Still awaiting the draft agreement but just throwing it out here for some insights.