Why Venture Capitalists do not sign NDA's (Non Disclosure Agreement)?

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Why Venture Capitalists do not sign NDA's (Non Disclosure Agreement)? Video Transcript

The question I am going to answer for you right now is why venture capitalists do not sign NDAs. Venture capitalists do not sign NDAs because they deal with lots of entrepreneurs. Lots of entrepreneurs pitch ideas to them and they need to evaluate your idea. They need to talk to others in your space to see if it is worth investing in. They do not want to create any liability on themselves. So for most venture capitalists, getting them to sign and NDA is something that they are not going to agree to. In fact, just even bringing the topic up, will you sign an NDA when you are talking to a venture capitalist who you are asking money from, is usually a taboo. So you need to make sure you have filed your patent protection and secured your intellectual property before talking to a VC and that is a general rule.

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