Why VCs Don't Sign NDAs

Brad Feld has a good post on why VCs don't sign NDAs.

I have been in this business for 20 years and to my knowledge, I have never signed one.

Dave Jilk's comment on Brad's post is probably accurate as well:

- Separate from your reasons, I think the underlying reason VCs don't sign NDAs is that they don't have to. They're the ones with the checkbooks -- simple negotiating power instantiated as a standard practice in the industry. ALL of us could claim your same reasons for not wanting to sign NDAs -- I don't like to sign them -- but I don't always have the negotiating power to say no.

Comments

[Mo]

Fred, I am completely novice to this field but without a NDA, what assurance does the "pitching" company have that the VC firm won't turn around and sell their idea to someone else? Is it just trust?

[Jeb]

Reputation. Screwing over entrepreurs is a good way to kill your dealflow. Or only attract ideas that aren't worth protecting.

BUT... if you're an entrepreneur and you're worried about that, consider it a red flag. No (smart) VC is going to fund an idea that is so vulnerable to competition that just HEARING about it jeopardizes it. You need a defensible advantage that protects you to the extent that talking about it doesn't really matter.

[Erik Schwartz]

The original idea is maybe 10%, the execution and adjustments are 90%.

Execution is 50% team talent/experience, 20% team passion, 20% hard work and 10% pure dumb luck.

[Christ]

Most most recently, london, i would say the tale involved with usually lacquer would be carried on. In English Grazia encompass pictures about so-called "nail Lubuten. Inspired by simply the particular red soled Christian Louboutin, is usually reputable nail Zooey Pocock offers to help clients to cover a inside of usually the nail by red lacquer. A magnificent procedure to feed that interest for the purpose of Christian Louboutin sale, when budgets designed for wide width shoes on the completely new collection expended.