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

[Adventurer]

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?

In my opinion it is very necessary, I know someone who discussed an intellectual idea with a group, because she was so naive she divulged all the information and they turned around and stole her ideas, she had no witness to say if she truly owned the idea or not

 

[Mostee501]

I feel their should be a legal agreement between the business owners and the investors in other not to run into future problems without solutions. People have different motives, the legal agreement will not be one sided and it will not permit one party to take all the glory.

 

[Ojonuyo]

Non disclosed agreement in a business is absolutely wrong and should not be tolerated. This is because you stand a chance of losing your clients when the going gets tough. It show you and your business contract is not transparent and should not be trusted. Hence, state all business deal from the on set.

 

[Eodine]

To be on a safe side, it is better to safe guard your talent and ideas. You can sign a non disclosure agreement to prevent your investor from stealing your idea. But innovators always have ideas if one gets misplaced.

 

[Setho]

Unless they go in with the idea of just stealing your ideas and implementing it in other project, investors should not have a problem with signing a non disclosure agreement. But there are some phases in business that actually warrants that you do all this in order to protect the business.

 

[Ralphjoe]

There should never be any part of a business investment clause that should be discreet as a business that is genuine should be seen as being transparent so that investors would be willing to invest into the organisation.

 

[Setho]

A non disclosure agreement could be a very bold but good step for your business because some so called investors are just there to steal tour ideas and pitch it somewhere else and are just disguising.

 

[Richard92]

There must always be disclosure agreement between the business partners this will constitute agreement between them.

 

[GIFTMICHAEL]

Yes, it is wise to sign a non disclosure agreement with the investor who may want to endorse your innovative ideas. The essence of it, is that you don't lose your creativity to third party easily rather you're safeguarding that which belongs to you.

 

[Sheyemanu]

In reply to your question in the above post, concerning if you should get your investors to sign a non disclosure agreement, well i do think this is a good idea and i definitely agree with you that you should get your investors to sign a NDA

 

[Setho]

There are a lot of businesses out there that do jot go with a good intention. Instead it is to steal your idea so the non disclosure agreement woiuldbbe Avery good thing.

 

[Setfragil]

It depends on the nature of the business and the agreement between the two parties that is involved in the investment before a non disclosure agreement can be agreed upon. The nature of some businesses allows non disclosure agreement by default.

 

[Kane]

You can bring investors in your business in two ways, one, the investors become business partner, two, the investor is not directly involved with the business operation and shares only profit and loss. For the first option, you need to share the business secrets, and for the second option, you do not have to share business secrets.

 

[BrolySSJ]

You can bring investors in your business in two ways, one, the investors become business partner, two, the investor is not directly involved with the business operation and shares only profit and loss. For the first option, you need to share the business secrets, and for the second option, you do not have to share business secrets.

Bringing someone in with these cases does make sense, however if you have a partner it is not necessary that you have to share the business secrets with them. Let us consider something on that scenario but a bit different. There are some peopel that invest in a business as a partner however they are considered a silent partner in that they are investing capital, but they do not get involved in the operation of the business. These silent partners often act in a way that portrays a shareholder, yet they are invested heavily in the company as a partner status.

 

[Bousine123]

If your partner or investor is fine with it, then it's ok. I personally don't like sharing business decisions.

 

[Hena101]

In my opinion I m think it's not good to do that because they are investing in your idea then why not letting you know about everything involved in it.

 

[BrolySSJ]

If your partner or investor is fine with it, then it's ok. I personally don't like sharing business decisions.

Sharing a business decision can sometimes be a good thing if you are looking for an unbiased point of view or an external perspective, however it can also cause a reduction in the speed with which these decisions can be implemented and that can be a concern as well.

 

[Yusuf1]

I think I will just go with the idea of one of the comment here that advice that one should just register the business and get a patent to back all the claims up with this method their won't be any issues

 

[BrolySSJ]

I think I will just go with the idea of one of the comment here that advice that one should just register the business and get a patent to back all the claims up with this method their won't be any issues

Filing for a patent however is not as easy as it seems and there is a lot of legal proceedings and a lot of grounds that are needed in order to file for a patent. In fact just a minor change for that invention or novel idea can result in the patent being denied and this can be very costly to try and keep making these filing systems and claims to obtain such a patent.

 

[Mayox25]

There should be concrete steps taken to protect your ideas or innovation through patent, trademarks and other legal instruments.