Should You be Concerned About a VC Stealing Your Startup Idea?
In this interview with Jeremy Glaser, who is a partner at the law firm Mintz Levin and also serves as Co-Chair of the firm’s Venture Capital & Emerging Companies Practice, we discuss why you shouldn’t be concerned about a reputable VC stealing your startup idea, but you should share information in phases. A bigger concern is sharing information with potential strategic partners. Tread carefully there.
Jeremy sais, “It’s (stealing ideas) certainly not common with venture capitalists. Think about it. What venture capitalist is going to stay in business if they have a reputation of taking companies’ ideas, running off and starting new companies? You’re going to destroy your business. I can honestly say, in 30 years, I’ve never seen a venture capital firm do this. However, I have seen companies do it. When you’re engaged in negotiations, especially as a small company, and you’re trying to show your technology to a potential strategic investor or potential customer, it’s quite important that you have that NDA in place.”
For more strategic insights on startups, visit questfusion.com.
This is Patrick Henry, CEO of QuestFusion, with The Real Deal…What Matters.
This article originally appeared in QuestFusion.