Should there be a non-disclosure agreement when you get investors into your business?

[BrolySSJ]

At a certain point we all have an innovative idea that we want to actually see materialize, and so sometimes we actually create a business that can realise this idea that we have. However, one of the hardest things when you are starting the business is having the necessary money that is needed to run the daily operations in the beginning.

If you have an innovative idea and if it is a novel idea that has not been implemented before do you think that it is necessary to get the investors to sign a nondisclosure agreement so that they don't steal the idea and possibly sell that to another company that they invested in? At this point because you are a new business there is no paper trail that says that this idea belongs to you and you alone. So do you think that a non-disclosure agreement is necessary or do you feel that perhaps it will create unease when it comes to getting money from the Investor?

 

[Sammyesx]

A genuine investor that believes in the actualisation of your idea wouldn't have problem with signing a nondisclosure agreenent. That is the part every new innovator should trade so as to secure his idea, because when it comes to business people are selfish.

 

[Osaz96]

Yes I think it is necessary because you have the idea, they have the money. There has to be a legal binding document between you and the investor concerning disclosure, if not your idea may be stolen and given to someone else who is willing to agree to the terms of the investor in terms of profit sharing and royalties.

 

[BrolySSJ]

Yes I think it is necessary because you have the idea, they have the money. There has to be a legal binding document between you and the investor concerning disclosure, if not your idea may be stolen and given to someone else who is willing to agree to the terms of the investor in terms of profit sharing and royalties.

This was exactly my thinking as well. When it comes to having a new idea there's of course people that may have the technology of the implemented to try and get that idea out into the public a lot sooner and investors would likely want to take this idea and present it to them. This agreement will ensure that you get the correct compensation for your idea and that also it remains yours.

 

[Ltherman]

Every form of protection that a new business needs should be taken especially when it has to do with something novel and can be easily stolen then having a non disclosure in place for anyone you want to do business with will be the best bet in keeping sealed lips.

 

[BrolySSJ]

Every form of protection that a new business needs should be taken especially when it has to do with something novel and can be easily stolen then having a non disclosure in place for anyone you want to do business with will be the best bet in keeping sealed lips.

The shows that whilst you may have a very good idea and in your head it may be very easy to create the business they are a lot of legal procedures that you also have to follow to ensure that that idea stays licensed to you. This is especially important if you are looking to further develop it in the future because when you have an idea there must be some sort of vision that you have for that idea in the future and how you wish for it progress with each time period.

 

[Dowenship]

I see nothing wrong in you disclosing a nondisclosurr agreement. Not only on stealing the idea alone, their are lots of things they should agree on before investing in the business, their must discussion of returns and so on like that.

 

[Frank]

Yes I think it is necessary because you have the idea, they have the money. There has to be a legal binding document between you and the investor concerning disclosure, if not your idea may be stolen and given to someone else who is willing to agree to the terms of the investor in terms of profit sharing and royalties.

There are a million and one ideas under the face of the earth. So, I don't think signing a Non Disclosure agreement is necessary when you get a big investor to invest on your business. Just make sure that your stake in the business is protected as that's the most important thing for me.

 

[Ridorz]

I can say that it is not good idea to disclose a nondisclosure idea for a investor if you do not want them to steal your idea for someone else. As far that you have a idea and they have money you should make agreement with them to invest to your business and you will be operating the business.

 

[Godleads1]

I want to believe that a nondisclosure agreement shouldn't be difficult for a good will investor to sign because the progress and well being of the business would be his heart desires. This agreement is to safe guard the idea against those whose intention might be to hurt you and your business.

 

[Alexandoy]

If I would be the investor I don't think it is an issue with the request for the non-disclosure agreement because obviously it is to protect the business idea. However, that agreement will only be effective against the investor. If the investor is not in good faith then he can divulge the confidential matters in the business to someone else who can do the copying of the business. At least the non-disclosure agreement will somehow give the proponent of the business peace of mind that his secret is safe.

 

[Smithkid]

I can say that it is not good idea to disclose a nondisclosure idea for a investor if you do not want them to steal your idea for someone else. As far that you have a idea and they have money you should make agreement with them to invest to your business and you will be operating the business.

 

[Herzhan]

At a certain point we all have an innovative idea that we want to actually see materialize, and so sometimes we actually create a business that can realise this idea that we have. However, one of the hardest things when you are starting the business is having the necessary money that is needed to run the daily operations in the beginning.

If you have an innovative idea and if it is a novel idea that has not been implemented before do you think that it is necessary to get the investors to sign a nondisclosure agreement so that they don't steal the idea and possibly sell that to another company that they invested in? At this point because you are a new business there is no paper trail that says that this idea belongs to you and you alone. So do you think that a non-disclosure agreement is necessary or do you feel that perhaps it will create unease when it comes to getting money from the Investor?

There should be agreement between partners. And the agreement should made visible to both parties. In order to avoid cheating and problem. Because people have abused the word trust

 

[BrolySSJ]

There should be agreement between partners. And the agreement should made visible to both parties. In order to avoid cheating and problem. Because people have abused the word trust

Yes trust is not a word that can be used in business as there have been many that have violated this trust and done actions that contradict it as well. I think that it is important to have physical contracts implemented in any business venture. Verbal contracts are supposed to be binding however, in my opinion I don't see that they are binding as it becomes hearsay in my opinion.

 

[Ayokex]

It has become imperative that whatever you do that involves a second or third party to involve a legal backing. You can get an investor in your business without a solid and well documented agreement with legal seal. Don't just limit it to only verbal agreement, it is important that you have a written one in the presence of one or two witnesses.

 

[springtech]

At a certain point we all have an innovative idea that we want to actually see materialize, and so sometimes we actually create a business that can realise this idea that we have. However, one of the hardest things when you are starting the business is having the necessary money that is needed to run the daily operations in the beginning.

If you have an innovative idea and if it is a novel idea that has not been implemented before do you think that it is necessary to get the investors to sign a nondisclosure agreement so that they don't steal the idea and possibly sell that to another company that they invested in? At this point because you are a new business there is no paper trail that says that this idea belongs to you and you alone. So do you think that a non-disclosure agreement is necessary or do you feel that perhaps it will create unease when it comes to getting money from the Investor?

Actually this is not new, as many companies i know do it . And you really can't blame them for making investors sign such agreements

Why would a business take the risk of getting her trade/business leaked especially to rival companies.

 

[BrolySSJ]

It has become imperative that whatever you do that involves a second or third party to involve a legal backing. You can get an investor in your business without a solid and well documented agreement with legal seal. Don't just limit it to only verbal agreement, it is important that you have a written one in the presence of one or two witnesses.

Many people believe that forming on a verbal agreement is almost just as good as relying on a physical agreement however I think that when it comes to later on and legal people action that may be required from the agreement that you made a verbal agreement becomes Hearsay whereas physical agreement can actually be used in a legal standing.

 

[mayreeh38]

These investors are investing In your idea. It is the nature of your business that attracted or convinced them to invest with you, as such since they are involved, there should be nothing hidden from them. Unless you have other motives, investors have the Right to know what they are investing into.

 

[Ltherman]

If the idea is a technical one that is subject to the intellectual expertise of the creator of the idea, it definitely will have to be protected against any form of theft by anyone. Looking at it practically it seems inpracticable in some cases as some investors may walk but the creator of the idea will be rest assured his idea is safe with him.

 

[Sariana23]

To avoid that an investor may act in bad faith and steal your innovative idea, you can register your idea and get a patent to back you up and at the same time, I agree with your thinking, by signing a trust document it should not be a hassle for investors, unless they go with the intention to steal your idea.