RSS at Feed BurnerNDA or Confidentiality Agreement
Most Entrepreneurs looking for angel money are always interested in getting people to sign NDA’s anytime they tell someone about their idea. The problem is that most Angel’s, and especially VC’s, will not sign NDA’s right away. There are too many reasons as to why they won’t. Find out how you should approach the NDA as well as what you should and should not disclose. The Post Money Value has two great posts talking about NDA’s. Another post talks about the two broad types of investments “The Black Box and the Execution Play” and when an NDA is applicable in either of them.
One piece of advice is to simply refer to the NDA as a Confidentiality Agreement. An NDA scares a lot of investors. Within the posts are also some ideas on how to protect yourself. They include filing a disclosure document relating to a patent process as well as keeping great documentation of who you meet with along with what happens at those meetings.
on February 16th, 2007 at 8:27 pm
[…] Is the world out of good ideas? - if you haven’t found this yet, Brant writes some nice stuff including posts on valuation for an exit, and how to handle an NDA […]
on February 23rd, 2007 at 9:18 pm
[…] Entrepreneurs looking to get funding for their start-up company often value their company much differently than investors. Entrepreneurs use the concept for the business (the product or service) as the driving factor behind the valuation they seek and feel they deserve. In fact, they usually think the idea is so brilliant, that they attempt to keep it top-secret and prefer not to disclose many ideas. They even like to require that investors sign an NDA (see my previous post related to investors and NDA’s). […]