Non-Disclosure Agreement (NDA)

An NDA (Non-Disclosure Agreement) is a legal contract binding parties not to disclose confidential information shared during business discussions. In early-stage VC, NDAs are rare — most VCs refuse to sign them when first meeting founders because they see hundreds of similar companies and signing NDAs creates legal exposure. In M&A processes, NDAs are standard — potential acquirers sign NDAs before accessing a data room. In later-stage rounds with sensitive financial data, NDAs may be requested and sometimes granted. Founders should not require NDAs for early investor meetings but should use them appropriately when sharing genuinely proprietary technical details with potential strategic partners.