Monday, April 07, 2008

I don't want to sign NDA...

I don't want to sign NDA, I generally only do NDA after I hear & interested in your idea

When was the last time you have heard this from a prospective investor or partner that you are looking for your venture?
I'm sure many times, doesn't that sounds stupid & meaningless to sign the NDA after you have heard the idea / story & value proposition of a product? why can't people (who think they are smart) understand that NDA is required to start disclosing the information from an entrepreneur's head.

In my opinion above attitude of possible investors or partners is leading to following -
  • Entrepreneurs stops looking out for help & tries to build it himself
  • Idea tends to remain in entrepreneurs head - as there is nobody to listen / help & take it forward
  • Entrepreneur rather thinks keeping it to myself is better than leaking it & others benefitting from it

What should entrepreneurs do in such a situation?
  • Look for the credibility of the person you were planning to share the idea - try to provide teaser info about your product idea, do not share any digital documents - only provide high level overview & if interest is generated... then proceed with NDA & sharing of critical documents
  • Don't waste the idea by keeping it in your head... if the options are less for partnership, go ahead & share the idea... go for it - entrepreneurship is all about taking the risks




Blogger Nagendra said...

I disagree with your viewpoint that an Entrepreneur can't discuss his/her idea without getting the NDA signed except in a very few situations that involve real IP (like a new algorithm, a new molecule etc.). A lot of entrepreneurs still attach way too much importance to the idea than to implementing it. I'm not aware of any great company that has been built by stealing an Idea. I feel, it's better to discuss your idea with as many people as you can to get it validated rather than keeping it to yourself fearing it will be copied. Believe me, if your idea is great and there is a huge market for the same, people will copy your idea once you launch your product or may be there are already several people who might be pursuing the same idea. That's my 2 cents.

3:48 AM  
Blogger bhas4 said...

Thanks for this note, you are right & I was leaning towards this opinion in the last to advice the entrepreneurs to go ahead without bothering about NDA.


4:37 AM  

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