Why Your (and Anyone’s) Idea isn’t Worthy of NDA Protection
If you are paranoid about sharing your idea because someone might take it (with a few rare exceptions), then why should anyone believe you are the right person to actually execute it?
When I first began on this little journey known of entrepreneurship in Fall of 2020, GameStake represented little more than an idea, weakly manifested in a PowerPoint deck that looked as though it was made in MS paint, the content of which had been informed by the half-baked business plan thrown together in my iPhone notes during episodes of sleeplessness during the year prior.
Eventually, though, I was able to iterate on this deck (and the proprietary model that will enable GameStake to be the first company to commoditize individual gamers in the context of Reg CF); shortly thereafter, I was accepted into a startup program at both Amazon and a large corporate law firm (the latter of which felt awesome at the time—not to be overrated, as it motivated me to keep going—but what I’ve now realized is rather common practice for many law firms)….and, eventually, I began seeking the time of accredited investors in my network in hopes of getting feedback (and, especially, a little bit of angel $$$).
For the first sprint of these meetings, however, I repeatedly made evident my naivety by requesting of these individuals something those with little more than an idea do far too often. What is this cardinal sin, you ask? Requesting that those with whom you share your idea early on sign an NDA (Non-Disclosure Agreement).
Now, as a disclaimer, NDAs certainly have their place—biotechnology, inventions, or trade secrets/proprietary methods (though this latter element is hardly ever so developed during the first few meetings where you are shopping around a first iteration of the pitch deck/business model). However, these examples represent a small minority.
Rather, what I am referring to is the endemic tendency of first-time founders to be so paranoid about this notion that someone might ‘steal their idea’ that they either often insist the person they’re talking to sign an NDA, or talk about it in such vagaries that make it nearly impossible to discern what the idea even is.
How do I know this? Well, because that was once me, too. A young man with a pretty decent idea (yet still un-executed) who was convinced that discussions about it—with the generous ‘grown-ups’ in my network who donated their time of day to hear me out—must be protected by NDA. What I soon learned is that many investors refuse to sign an NDA; not because they’re going to take your idea, but because it makes you look like a rookie.
It took me a bit to see why, but now I can’t see it any other way—namely, that if you’re someone with little more than an idea yet still request someone you share it with sign an NDA, then you really don’t the difference between an idea and executing said idea.
The truth is, ideas are conjured up all the time—by your friends, by your neighbors, by people walking their dogs in the park…in short, ideas, while interesting, are really worth nothing of value. There’s a reason why the FMV price of the shares I bought in GameStake quite literally worth $0.00001/pop: ideas are conjured up with relative ease, and therefore nobody (or their idea) is considered ‘special’; execution of an idea, on the other hand, is where the buck stops for most people—going out to fundraise, prospecting and onboarding co-founders and early employees, coughing up some of your own money to validate the market, and, eventually, taking the ultimate entrepreneurial leap by committing full-time (the latter of which can, and should be, a calculated one).
It’s a tough pill to swallow, and was for me, too; but having now been in ‘execution mode’ for a little close to a year, built a team, and raised a considerable amount of angel capital, I (and I would wager anyone else who’s started a business) will tell you that the difference between originating an idea and actually investing time and resources into it so it becomes something is so vastly great that I think the only way to fully appreciate the difference is by experiencing it yourself. These words are not derived from a mindset of ‘holier than thou’; rather, it is simply the reality of my, and many other entrepreneurs’, journey to launching a business.
99% of people don’t execute on ideas—heck, I still have a laundry list of ideas parked in my iPhone notes from my ‘Wantrapreneur’ days. As such, being excessively protective and/or insisting that people sign an NDA before hearing about “your blockbuster business” (that you haven’t begun even building) does more harm than good. It impresses upon the other person the sense that, not only are you naive, but you probably lack the conviction that you—and only you—are the right person to execute. Because if you are, or have embodied that mindset), you won’t think twice about climbing atop a proverbial mountain and broadcasting it to the world for all to hear. You should be so eager to share your idea with anyone and everyone willing to listen, whereby that person (a prospective investor, future employer, early customer) comes away from the conversation truly believing that your passion for and understanding of the business you are seeking to build is unmatched; that YOU are the only person who can execute it.
What are your thoughts on the matter? Leave a comment as I’d love to hear others’ opinion on the matter.
If you are interested in learning more about GameStake, the world’s first-ever crowdfunding platform whereby competitive & content-creating amateur gamers and raise capital from everyday investors in exchange for a share in their success, feel free to check us out at GameStake.com, our Instagram and TikTok (@GameStakeHQ), or shoot me an email at medium@gamestake.com.
