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Non-Disclosure Agreements?

Written March 1, 2020

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A non-disclosure agreement (NDA) is an agreement where a third-party agrees to protect your startup’s confidential information from disclosure to other parties. Anyone working on your startup's IP should sign one. It is not common practice for investors to be presented with an NDA.

If an investor maintained the practice of signing an NDA for each submission they received, they would have to retain a team of lawyers to keep track of them. This would increase transaction costs greatly and potentially prevent an investor from even hearing your pitch.

Non-Disclosure Agreements can be mutual or unilateral. A Mutual NDA protects the confidential information of both parties to the contract, while a Unilateral NDA only protects one party. -

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