4 ms·

I don't ask people to sign NDAs and I personally don't really care about them but is there a legal reason people/VCs don't want to sign NDAs?

• 300bps 13y ago
  Imagine you invest in several companies simultaneously. You have funded Company A who is working on something that does X. You meet with Company B, sign an NDA and discover their idea is to also work on X. At best this will resolve itself as a simple misunderstanding and at worst there will be attorneys involved.
  • loceng 13y ago
    It's a smart business model ... having all of the most innovative and disruption seekers coming to tell you their ideas - which then can help you form your understanding of where to invest, and then invest in the best options that come forward - and then more than likely help guide the companies via being on the board of directors..
    • vdaniuk 13y ago
      Yes, it is a smart model. However consider that the process of the unravelling of idea may be much more important that the data communicated about the idea to VC. Even if founders wanted, they couldnt transmit all the data about the idea.