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Cake day: October 30th, 2023

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  • sbradley0@alien.topBtoStartupsSigning an NDA as a startup
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    11 months ago

    Your post is extremely vague, but:

    A mutual NDA is often used, and desirable, when at least one party may consider their business practices and methods to be their secret sauce. Such an NDA may include a non-solicitation; in other words, you promise not to steal each others customers / clients.

    However, this is more useful when you’re talking completely different types of business, for example, a marketing agency working with a tech startup not in the marketing space. In this way, even if the NDA includes a non-compete, it’s not relevant because you’re operating completely different businesses and you don’t compete with each other anyways.

    If you’re more risk averse, because you have “industry overlap”, you probably don’t want to sign it.

    But honestly this isn’t even about the NDA; they are trying to sell you something, and you don’t see how there’s mutual benefit. They haven’t successfully sold you on it. This is something they should be able to do without an NDA. With an NDA it’s sort of like “We can sell you what’s in the box, but we won’t tell you what it is until you agree to be legally obligated to us” which is pretty cheeky.

    In short, you’re already a “no”, so pass; the NDA is irrelevant.