Non Disclosure Agreement for Investors
Non disclosure agreement for investors refers to a deal between parties, which makes them legally responsible for revealing any confidential information.3 min read
Non disclosure agreement for investors refers to a deal between at least two parties, that makes one of them legally responsible for revealing any information marked as confidential. The agreement should clearly specify what classifies as confidential information.
In the case of startup companies, a well-written non-disclosure agreement protects the newly-founded company's intellectual property. This is a crucial step in dealing with potential investors because it prevents situations where confidential information could be revealed to competitors or the investor attempting to steal the new company's business plan and replicate it. Most investors, however, always refuse to sign such agreements when dealing with startups, making a founder asking for such a deal look inexperienced and naive.