Mahomes Bolden PC

If you are meeting with a prospective investor or potential business partner and you may be disclosing proprietary information (info you don't want your competitors to know) concerning your business or business concept, you absolutely should consider having the recipient of the information sign a non-disclosure agreement (NDA).

For example, you have a great business idea that needs funding and you want to seek funding from an investor, in order for the investor to decide whether or not they should invest, you will need to explain to them your business concept. Your fear will likely be that instead of investing, they steal your business concept and profit from it.

You will want an NDA to be executed.

Depending on the negotiating power of the two parties (example: a small entrepreneur introducing his idea/concept to Google will not have as much negotiation power or "leverage" as Google) the small entrepreneur may have to use the larger company's form of NDA or they may refuse to sign an NDA.

NDAs should be drafted carefully to adequately protect your interests and intellectual property and if a party refuses to enter into an NDA, you should carefully analyze the risk/reward of divulging proprietary information to the party.