When to Ask an Investor to Sign an NDA
Most of us have seen the movie The Social Network that shows how Mark Zuckerberg stole the idea for what eventually became Facebook. We know that entrepreneurs are protective of their ideas, but this scenario recalls the familiar adage in the startup world: ideas are cheap; execution is priceless. Zuckerberg didn’t just steal the idea. He actually improved the platform and made it work better. That’s execution. Investors care more about execution than ideas, so asking them to sign anything that protects your idea may actually do more harm than good. When it comes to protecting intellectual property (IP), it makes...