Top Blog Posts On Why VCs Do Not Sign NDAs

Every now and then an entrepreneur will ask us for an NDA. We do not like signing them and we very rarely do (and never in the beginning of a discussion). We have signed a few in the past and it always had only one effect: it slowed down the discussion between us and the startup.

Below you will find a very quick summary of why I do not think NDAs between startups and VCs are a good idea. Instead of going into the details of each of the points, I will post a list of good blog posts around these topics, since so much has been written about NDAs already. I will aim to expand this list and add new interesting posts as I come across them. Then, I will just send a link to this post to the next startup founder asking for an NDA.

Why NDAs are not a good idea (summary):

  • impossible to manage for the VC
  • slow down the discussion between startup and VC
  • signal lack of trust in the beginning of a relationship
  • in practice do not provide protection anyway
  • execution of an idea and the team around it is so much more important and defensible than the idea itself

Selected blog posts on the topic of NDAs:

Please let me know if you have any comments or additions to the above lists.


Originally published at pawel.posthaven.com.

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