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Tips: Two-Way Nondisclosure Agreement

In most circumstances, your startup should enter into a nondisclosure agreement before disclosing or discussing confidential information with any third party. With the agreement in effect, your startup can share critical information about your business plan or technology while enjoying some legal protections against the dissemination of this information to a third party (or the pirating of it for personal gain). Unfortunately, many investors are hesitant to enter into NDAs and may do so only on the condition that their own forms are used.