3 ms·

I've had more than my share of pitches where people would want me to sign an NDA. Pitch a business that they haven't done any work on, and that requires all the

by vertis 6y ago

I've had more than my share of pitches where people would want me to sign an NDA. Pitch a business that they haven't done any work on, and that requires all the risk upfront to be software development (i.e. my potential contribution), and then not want to go 50/50 in the business. I've bothered to follow up on some of these businesses, and I've yet to miss anything substantial. But in the absence of any other data, NDA becomes a very good indication of whether I should continue the conversation. Can someone run off with an idea and make a billion dollars? Maybe. But I would suggest that an NDA gives very little protection. If the person is going to do that and actually manages to make a billion dollars from it, then all you have is a piece of paper saying the person won't discuss the idea without specifying the idea. Unless you then have a paper trail of discussing the idea, how can you argue that that was your idea? Most subsequent discussions in my experience have been verbal. Worse still they have a billion dollars to fight the matter in court.

pc86 6y ago
I still remember a chat I had with a guy around 2012 or so. His idea was basically about.me, but only for realtors, and worse. Even as "I have a million dollar app idea!!1" ideas go, it was pretty terrible. He wanted me to write the entire thing "in a week or two, right?" and got pretty offended when I laughed at his proposed 80/20 split. He also stormed out of the coffee shop we were in when I laughed again when I refused to sign the ex post facto NDA he pulled out. I still think about him sometimes and wonder who he's bothering now.
- SavageBeast 6y ago
  Same thing has happened to me more times than I can easily remember! My take on this has evolved to be "If I can steal your idea/product/scheme as a result of a 60 minute conversation about it then you most likely have a terrible idea". Once a month some idiot comes to tell me about their Great Idea For An App (that I can build for them in exchange for EQUITY!!) and I honestly don't even listen to them anymore.
- mgkimsal 6y ago
  I think some people have a hard time understanding that you, me and others who do this for a living have literally hundreds of ideas - we can see a basic marketplace idea and spin up a dozen variations based on demographics, industry, etc. Without a solid plan of execution/sales, demonstrated industry contacts and ideally some measure of success in this same industry, me executing your idea is statistically a big waste of my time (and may unintentionally end up tying me to you in ways I don't want to be tied). Lots of downside, very little upside. Now, if you have a huge name and track record... I can get it. Years ago talked with someone who'd done some deals with the 'guerilla marketing' guy (Levinson IIRC). After a while, he was more or less just licensing his name/brand for a cut, but it was worth it because there was already a track record and built-in audience - anything with his name/brand would be guaranteed some degree of sales on day one. Most people who've approached me with ideas like that haven't had that success. Even in one case where I was working with a guy who had executed multiple businesses and had good success (one 8 figure exit) - we just couldn't work together - our expectations of each other never synced up.

by vertis 6y ago

pc86 6y ago

I still remember a chat I had with a guy around 2012 or so. His idea was basically about.me, but only for realtors, and worse. Even as "I have a million dollar app idea!!1" ideas go, it was pretty terrible. He wanted me to write the entire thing "in a week or two, right?" and got pretty offended when I laughed at his proposed 80/20 split. He also stormed out of the coffee shop we were in when I laughed again when I refused to sign the ex post facto NDA he pulled out. I still think about him sometimes and wonder who he's bothering now.

SavageBeast 6y ago
Same thing has happened to me more times than I can easily remember! My take on this has evolved to be "If I can steal your idea/product/scheme as a result of a 60 minute conversation about it then you most likely have a terrible idea". Once a month some idiot comes to tell me about their Great Idea For An App (that I can build for them in exchange for EQUITY!!) and I honestly don't even listen to them anymore.
mgkimsal 6y ago
I think some people have a hard time understanding that you, me and others who do this for a living have literally hundreds of ideas - we can see a basic marketplace idea and spin up a dozen variations based on demographics, industry, etc. Without a solid plan of execution/sales, demonstrated industry contacts and ideally some measure of success in this same industry, me executing your idea is statistically a big waste of my time (and may unintentionally end up tying me to you in ways I don't want to be tied). Lots of downside, very little upside. Now, if you have a huge name and track record... I can get it. Years ago talked with someone who'd done some deals with the 'guerilla marketing' guy (Levinson IIRC). After a while, he was more or less just licensing his name/brand for a cut, but it was worth it because there was already a track record and built-in audience - anything with his name/brand would be guaranteed some degree of sales on day one. Most people who've approached me with ideas like that haven't had that success. Even in one case where I was working with a guy who had executed multiple businesses and had good success (one 8 figure exit) - we just couldn't work together - our expectations of each other never synced up.