IP & crowdfunding: are 1,000 NDAs better than none?

Angels and venture capitalists will not sign non-disclosure (confidentiality) agreements just to listen to an entrepreneur’s funding presentation, or even to read the entrepreneur’s business plan. Serial entrepreneurs understand this and write their plans without describing the "secret sauce." Investors will eventually want to validate the intellectual property (IP) prior to investing but not just to hear about the opportunity. After hearing an interesting presentation, these professional investors will engage with the entrepreneur in a process called "due diligence," an exhaustive review of the business plan. During this phase of the investment process, representatives of the investor group may agree to a non-disclosure agreement as part of their validation of the IP.

By Bill Payne

Full Story: http://gust.com/angel-investing/startup-blogs/2012/01/18/ip-crowdfunding-are-1000-ndas-better-than-none/