
NDA for Seed / Series A Rounds - jes81
How to start ups typically handle NDAs for investors during Seed and Series A rounds? I&#x27;ve heard that most investors refuse to sign them. Is there a basic template that would cover materials exchange and outline a non-compete and non-solicit?
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davismwfl
You will likely never get any investment if you expect a NDA/non-compete. More
of less, investors won't take you serious.

Investors don't run around stealing ideas as it is bad for business, they also
won't sign NDA's non-competes because it would destroy their business. Of
course, I am sure there are some examples that can be pointed too where an
investor misused data they were given, but of the thousands of deals reviewed
every year if it was a rampant problem people would be screaming about it.

Find good competent investors, and drop any idea of an NDA/non-compete etc. If
you get investment, your job is to move faster then everyone else to build
your moat, focus on that. This is also why though you need to diligence your
investors as much as they are you. When you are approaching investors you
aren't sending all your secrets anyway. Especially when you are first looking
for seed type money everything you present is mainly ideas with a little proof
you aren't full of shit. Everything market and business related in those early
decks is something that all your competitors and likely competitors would
already suspect or know, with some exceptions. There just isn't anything
really worth protecting that early. Investors at the early stages aren't
coming in and going through your code etc, they are looking at the founders,
business model, marketing opportunity etc to see if they think it is viable.

*edit for clarity

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jes81
Thanks for the reply, very helpful

