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Should Investors Sign An NDA? #shorts

Name: Should Investors Sign An NDA? #shorts
Uploaded: 2024-02-15T20:01:57+00:00
Duration: 33 s
Channel: Royston G King
Description: In this brief video, the speaker advises entrepreneurs that offering equity (or future equity) to investors makes those investors partners in the…

15 Feb 2024 · 1 min

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In this brief video, the speaker advises entrepreneurs that offering equity (or future equity) to investors makes those investors partners in the business. Because of this partnership, investors will typically want full visibility into the company's details and are unlikely to sign a non‑disclosure agreement (NDA). Founders should therefore be prepared to disclose all relevant information and set up a well‑organized data room to facilitate the due‑diligence process, which improves the chances of securing investment.

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investors to invest in equity or future equity in your business, you're inviting them to become your business partners. And so we're going to want to see all the details, all the paperwork, and we're also very unlikely to sign an NDA. So you just— you're going to have to reveal yourself completely to receive the investment, basically. And the, and the easier you make that process and the better your data room is set up for that due diligence to occur, the better off you will be.