I'm a tech entrepreneur who recently met with another tech entrepreneur who is in the same industry. He wants to potentially work with me but before he can talk about his venture he wants me to sign a non-disclosure agreement.
✅ TL;DR (Too Long; Didn’t Read)
No, it’s not unwise — but it depends.
Signing an NDA early in a conversation can be risky if it’s:
Too broad
One-sided
Poorly written
A good NDA should be mutual, specific, and aligned with the stage of the conversation. In some cases, refusing to sign may halt progress — but that’s not always a bad thing. Trust, judgment, and clarity matter more than a standard template.
🧠 Full Answer
NDAs are a normal part of doing business — but timing, structure, and trust are everything.
Here’s how to think through it:
⚖️ 1. Assess the Stage of Conversation
First call or pitch deck? → Likely too early to sign anything
Diligence stage with serious intent? → Signing may make sense. You shouldn’t be legally bound to secrecy before even knowing whether a real opportunity exists.
🤝 2. Request a Mutual NDA
If you're open to signing:
Ask for a mutual NDA — one that protects both parties
Avoid NDAs that prohibit things like "working on similar ideas" or that are so broad they trap you for years
Always read carefully or have a lawyer skim it.
🧠 3. Know the Real Risk
Ideas are rarely the real asset — execution is.
You won’t lose much by hearing a high-level pitch. But signing a poorly worded NDA can cost you freedom to build your own ideas later, especially if you’re working in the same space.
🔄 4. Flip the Conversation if Needed
If someone insists on an NDA too early, try this:
“I understand your need to protect your IP, but I typically don’t sign NDAs at the exploratory stage. Happy to hear the high-level version and see if we’re aligned. If we go deeper, we can revisit the legal part.”
If they refuse — that tells you something, too.
🔍 What Was Missed or Confused in Previous Answers
❌ “People who use NDAs aren’t serious” – Overgeneralized. Some people use NDAs simply because that’s how they were advised.
❌ “Ideas are worthless” – Not always. Execution is key, but some early-stage IP or tech concepts do require discretion.
❌ “I hate NDAs” – Emotion ≠ legal guidance. Many responses shared opinions but didn’t clarify the legal or strategic risks of signing the wrong NDA.
✅ Correct point that NDAs only matter if you can afford to enforce them. A contract is only as strong as the party willing to defend it.
🧭 Final Word
NDAs are not inherently unwise — but blindly signing one is.
👉 If you're considering it:Ask for mutual terms
Read the scope carefully
Make sure it's tied to a specific opportunity, not every idea under the sun
✅ TL;DR (Too Long; Didn’t Read)
No, it’s not unwise — but it depends.
Signing an NDA early in a conversation can be risky if it’s:
Too broad
One-sided
Poorly written
A good NDA should be mutual, specific, and aligned with the stage of the conversation. In some cases, refusing to sign may halt progress — but that’s not always a bad thing. Trust, judgment, and clarity matter more than a standard template.
🧠 Full Answer
NDAs are a normal part of doing business — but timing, structure, and trust are everything.
Here’s how to think through it:
⚖️ 1. Assess the Stage of Conversation
First call or pitch deck? → Likely too early to sign anything
Diligence stage with serious intent? → Signing may make sense
You shouldn’t be legally bound to secrecy before even knowing whether a real opportunity exists.
🤝 2. Request a Mutual NDA
If you're open to signing:
Ask for a mutual NDA — one that protects both parties
Avoid NDAs that prohibit things like "working on similar ideas" or that are so broad they trap you for years
Always read carefully or have a lawyer skim it.
🧠 3. Know the Real Risk
Ideas are rarely the real asset — execution is.
You won’t lose much by hearing a high-level pitch. But signing a poorly worded NDA can cost you freedom to build your own ideas later, especially if you’re working in the same space.
🔄 4. Flip the Conversation if Needed
If someone insists on an NDA too early, try this:
“I understand your need to protect your IP, but I typically don’t sign NDAs at the exploratory stage. Happy to hear the high-level version and see if we’re aligned. If we go deeper, we can revisit the legal part.”
If they refuse — that tells you something, too.
🔍 What Was Missed or Confused in Previous Answers
❌ “People who use NDAs aren’t serious” – Overgeneralized. Some people use NDAs simply because that’s how they were advised.
❌ “Ideas are worthless” – Not always. Execution is key, but some early-stage IP or tech concepts do require discretion.
❌ “I hate NDAs” – Emotion ≠ legal guidance. Many responses shared opinions but didn’t clarify the legal or strategic risks of signing the wrong NDA.
✅ Correct point that NDAs only matter if you can afford to enforce them. A contract is only as strong as the party willing to defend it.
🧭 Final Word
NDAs are not inherently unwise — but blindly signing one is.
👉 If you're considering it:
Ask for mutual terms
Read the scope carefully
Make sure it's tied to a specific opportunity, not every idea under the sun
Would you like a free mutual NDA template you can suggest instead of accepting theirs? I’m happy to share a vetted one that keeps the conversation fair — and if you’d prefer to talk it through, we can schedule a quick call to walk through it together.
_SQUARE.jpg?1626983158)
.jpg?1747682639)