Non Disclosure Agreements for Start-Ups

Start-ups value their business idea and intellectual property. Therefore, it is indispensable that start-ups ensure the confidentiality of their business information and trade secrets. However, in order to translate the idea into a successful business and bring the product to market, start-ups will invariably need to disclose their information with investors, suppliers, consultants and even new employees. For that reason start-ups are confronted with a challenging balancing act between keeping the business idea confidential and promoting the business amongst third parties in order to grow the business. Evidently, start-ups need to restrict the amount of people they share their idea and value proposition with. If that’s not feasible, start-ups should invest some time into drafting a non-disclosure agreement (‘NDA’) or a confidentiality agreement as it offers the possibility of protecting the information of being divulged further than anticipated. This brief highlights some of the key aspects that need to be taken into account when talking about and drafting NDAs. For instance, start-ups are highly advised to refrain from using NDAs when approaching investors

 Non-Disclosure Agreements for Start-Ups

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