How much info to give potential investors??

judsonvoss1

We are working on a few projects that we will need startup funding for in the next couple of months.  One of them is a service company and its premise is fairly basic.  Another project is a first to market service and would be by far the first of it`s kind.  Some of the people I would like to approach for funding could also be competitors if they came up with the same idea.  Any suggestions on how to cover my assets?  I have NDA`s available.  The intellectual property rights attorney I spoke with said that while the idea is a viable solution it would be tough to defend in court.  My conncern is that if I present the idea and have NDA`s signed but the other company still proceeds by the time we fight it out in court it will be too late to salvage the project.
 
Thanks for your input.

steve

I highly recommend that you read Guy Kawasaki`s The Art of the Start.

He specifically addresses the topic of investors and NDAs.

judsonvoss1

Thanks Steve,
 
I just put it on hold at the library and will take a look this evening.

patentandtrademark

NDA`s can be very tough to enforce if you don`t obtain the appropriate type of protections [e.g. patent or trademark].

steve

Sounds like you have a great niche. I will definitely check out your
real estate podcast. I`ll need some place to invest my cookie profits.

patentandtrademark

I would be very interested to hear from anybody that ever actually tried to enforce an NDA.  What they did, what happened as an outcome, etc...  It`s important to keep in mind that ideas, in and of themselves, are WORTHLESS. 

robertj

Katt
Your messages says:  What they will do is have the investors sign the plan on the bottom that states it can not be used, as it is the exclusive property of that firm and myself. 
Does that mean that Firm owns the plan along with you? Could present a challenge in the future?

robertj

While I am not an attorney - I have been delaing with the NDA situation for a number of years.
I agree that the execution of one is an indication of intent. However, what is important to remember is that having an NDA -doesn`t automatically mean you are protecting your valuable intellectual property and it doesn`t cover "everything" you say and do.
Generally, to be effective, the disclosing party must (clearly) identify the "secrets" that are covered.
 

Mitchell

 
Here is how this works.

shabbirahmed01

Ideas are generally free...execution is where you`ll win.  If you can prove you can execute then investors or partners will not try to build your business.  I doubt any investor or competitor will sign an NDA.  But it`s always worth a shot.

Sirk002

I have enforced an NDA against a Company that took my ideas and one of my key employees after our discussions about a potential JV.  The NDA didn`t prevent the damage from happening.  But when I found out, after the fact, I was able to use the NDA to achieve a favorable settlement. While it is true that investors will often refuse to sign NDAs, I find that just presenting it does two things.  It establishes that I have something that is worth protecting (and therefore investing in) and also it opens the discussion of confidentiality and intentions.  I have walked away from deals because of the details that I found out while discussing an NDA.  I`d rather have that conversation and know about my potential investor`s conflicts ahead of time than after the fact.