Many entrepreneurs are incredibly sensitive to sharing their billion dollar idea with anyone. The thought of sending a pitch deck to a venture firm, or even pitching their idea on stage is scary…what if someone steals the idea?!
Venture capitalists obviously have the money to steal any idea, so why would you just hand them the blueprints to a billion dollars?
NDA’s seem like a great way to protect your valuable idea but this can actually hurt you in the long run. Requiring an NDA stops entrepreneurs from eliciting feedback about the solution to the problem, which probably will need refinement and criticisms. Instead of focusing on the idea, you should focus on the problem it’s trying to solve.
When a VC wants to hear a pitch, and is unwilling to sign an NDA, some entrepreneurs are hesitant to share their idea, even though it could lead to a payout. Here are some reasons why you may want to take a step back from the NDA and encourage a free flow of ideas.
Originally posted on Entrepreneur.com | By John Rampton