If you want to take care of anything, you worry about whether you actually have a meeting with an investor. You will have many challenges to attract investors, do not make it one more reason to force them on the way to the NDA to not have a pitch. The investor will smile or roll their eyes depending on the mood, and either delete your email or send a canned reply that either 1/finished the wire, or 2/ waiting for you to accept and send the deck anyway, because you have fewer levers than the VC. If the fund manager represents an angelic fund with a strong investment history and an impeccable reputation, you may have offended the fund and yourself. Angelic groups and VCs work in a narrow knitting industry. They work hard to build and maintain a good reputation for integrity. Without this, entrepreneurs would not be interested and their business flow would run out. I`ve never heard of a venture capitalist or angel who rips off an idea — frankly, few ideas are worth stealing. Even if your idea is worth stealing, the hard part is implementing the idea of not coming with it. Finally, following the dating analogy, you probably won`t get much data when the first thing in your mouth is „Do you want to sign a wedding?“ In short, investors do not sign NDAs. You won`t sign your NDA. If you ask them to make you believe that you don`t know what you`re doing, there are a few reasons for that. It is not uncommon for an Angel/VC fund to have multiple entrepreneurs who simultaneously bring similar ideas.
The requirement to perform the NDAs in this situation could be one, „What comes first, chicken or egg?“ Type problem. Without NOA, some entrepreneurs will not provide the information investors need to make a choice. However, if Angel/VC funds run NDAs, they may only be able to see one of the options for which they perform the NDA. On what basis do investors decide their choice? Angels and VCs have a strong incentive to protect the information they receive. It would destroy their reputation if they did a practice to steal ideas from the companies that set them up. Your deal flow would dry up quickly. However, the risk and cost of managing each company`s confidentiality agreements is far too high and experienced founders do not know how to ask. Confidentiality agreements, NOAs, confidentiality agreements or even proprietary information agreements, what are they for? Well, I`ll tell you.
„Do you want to sign my NDA?“ is a very common question that the founders have for the first time. It`s really bad, too. A lot has been written about this subject. To save you time on Google, I have prepared a fairly definitive blog. If you don`t have time, just read the tl; Dr. Or just this: Don`t ask for an NDA, no one will sign it and you look dumb. Non-Disclosure Agreements (NDAs) allow founders to share confidential information with customers, partners and potential investors. To protect this private information and its activities, founders should understand and implement the key aspects of an NDA.
VCs do not need detailed technical information at the first meetings. Remove all confidential information from your sheets and do not disclose confidential technical information during your presentation. If you go through a series of meetings with a potential investor, you can provide information that you deem particularly sensitive for future meetings if you have established a stronger relationship and you think that any perceived risk of disclosure is offset by the greater likelihood of a potential investment. Don`t forget to conduct your own audit of potential investors and rely on reliable sources of recommendation. NDAs are legal documents that, if properly done, generally require the verification of a lawyer.