[comicsfan98]

just letting you know..

NDA does not protect you.

dont worry, our NDA is very detailed.

[CP Mr Ofevaw]

Originally Posted by Willi B

I think it is great you have a good attitude about the detractors. When their business idea is a community of people making money off of the great idea of one person, you can understand they know alot about business, but little about the great idea that is unique.

Hello Willy, just noticed your comment...

My intention wasn't to detract. If that's how you perceived it, then you did so incorrectly. The point is that I have talked to many VC's and have read just about every book on VC's and investing. Every VC that I've run across says the same thing "if you ask for an NDA, that will be the end of our conversation". I already explained why...

That previous fellow's company seems to say "tell us your idea, we'll all develop it and make it better, then we all share the money"... which is great if you can find people willing to give you their great idea. It sounds like an idea, but not a great idea. It sounds like a way to make money off of other peoples ideas.... but how does one trust on that level on the internet? I don't get it.

Things are actually going great. It's definitely not a new concept; it's called a think-tank. As for trust, legal documentation and contracts take care of that... Not to mention that everyone on the team is hand picked and feels strongly about what we're doing (i.e. collective thought can produce good things).

When an idea is truly unique and/or revolutionary, asking for a NDA isn't a bad thing, it's smart business. Trust is earned, not given.

Again, a VC won't listen to anything coming out of a startups mouth if an NDA is requested. And if the VC chooses against the NDA, then the startup will go elsehwere - so how is the VC supposed to know that the idea is revolutionary?

I suggest you guys pick up some of Guy Kawasaki's books, his way of doing things is generally practiced by most.

Anyway, more power to Mr. Taylor... I just don't want to see him get turned down countless times and have to turn to forums for funding because he's requesting an NDA. Google never asked for an NDA when they got funded, and I'd definitely consider them to be "revolutionary".

Again, I'm talking VC's here... If you're referring to angel investors, then I'm not sure (in other words, an NDA may or may not be a good idea).

[akula]

touche.

here's why I won't sign NDA:

1) It's impractical for the entrepreneur; because if I sign an NDA, they'll need to sign a no shop provision and an exploding term sheet. It's tit for tat. Creation of new rights for entrepreneur must be offset by creation of new rights for the opposing party.

2) It's impractical and immoral for me to sign an NDA because if I did, I wouldn't be able to go down to the shops to pick up a pack of smokes without infringing someones confidentiality. Namely, an NDA places restrictions on the kinds of alternative investments I may and may not make.

This is a restrictive trade practice and it's immoral, because its restrictive.

3) It's untactical. The entrepreneur has little BATNA, and signing something when you don't have to, is just misplaced altruism.

4) It's unpredictable. Say I sign an NDA. It turns out the entrepreneur is a redneck nazi sympathiser and I don't want to have anything to do with her. But I like the space. And I fund an alternative startup in that space. The redneck has a cause of action and irrespective of whether they're likely to win - they'll use this cause of action to black mail my investee. Signing one entrepreneur' NDA creates disadvantages for other entrepreneurs.

5) I just don't like people who don't trust me.

The best NDA is someones reputation. The venture biz is a small industry. Everyone knows everyone else, and people who breach confidentiality will suffer professional disadvantage (to use a euphemism).

[run]

Invest your investor's hard earned cash in a patent.
Then everyone will be happy, and you can release your idea into the market with Patent Pending on it, and anyone trying to copy you, just sue!

Then there would be more money...

Not sure how it works in Aus, but here in the Cayman Islands, we have really strict regulations about copyright

[907Group]

thanks for those pdf downloads, definitely will read them.
best luck scott.

[sicnarftea]

Having a VC or business angel invest in your company is not as easy as it sounds, even getting to talk to them is aleady a task. Most of the time, they don't want to even look at you unless you have already done something to show them, and you must prove that you have done the best you can with whatever you had and you just need that little help to get to the finish line. Ofcourse there are some that would just invest in you because of the idea.

As for angels, they usually want involvement in the company and watch over what you do, and some entrepreneurs cannot handle that, its like your dad telling you what to do.

Also, they will want more than 10% (because they are greedy and investing in someone they would conside of high risk) Also another thing is because of your age, unfortunately, you are unable to sign any documents at all.

I am not 100% sure if you could apply for government grants, but its there for anyone with a great new idea to grab it. Also, if it is such a revolutionary idea, I would suggest you speak with an IP lawyer and get yourself protected. Because if you don't patent your idea, when you finish with it, (and if it is truely that great) other larger companies will steal from you and you most likely cannot do anything about it.

But yeh, best of luck to what you have in mind and I hope to see you on TV sometime soon.

[Robillion]

Is it just me or are there a lot of Aussies on these forums...

I think it is great for people of your age to be so enthusiatic. I was the same way when I was 16... hell even when I was like 13-14. You learn a lot over the years. Gets you such an awesome start.. learning what works, what doesnt, ect. Im almost 20 now.. still young. I am interested in talking with you, not about investing because I do not currently have the funds, but maybe about venture ideas, ect. I have many ideas as well. I know right now if I had $10,000 I would be a millionaire by next year(through various inventions I have). With my current venture(without captital).. at least I am definately planning on being a multi thousandaire this by the end of this year at least

[Luke]

Thanks for the nice read Robillion and good luck with your business Scott.

[RetroDuck]

Can a 16 year old legally enter into an agreement like an NDA in Australia? In the U.S. they can't.

[BOG]

Huuummm..interesting