Compliance
NDA (Non-Disclosure Agreement)
Quick definition
Contract obligating parties to keep specific information confidential. Mutual NDAs go both ways; unilateral protect only the discloser.
NDAs are common with: customers (during sales), vendors (during evaluations), partners (during BD), employees (often part of PIIA). Mutual NDAs protect both parties; unilateral protect only one. VCs almost universally refuse to sign NDAs (too many founders pitch them similar ideas). Term length typically 2-5 years. Use sparingly; relying on NDAs alone isn't an IP protection strategy.
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Frequently asked questions
- What is NDA (Non-Disclosure Agreement)?
- NDAs are common with: customers (during sales), vendors (during evaluations), partners (during BD), employees (often part of PIIA). Mutual NDAs protect both parties; unilateral protect only one. VCs almost universally refuse to sign NDAs (too many founders pitch them similar ideas). Term length typically 2-5 years. Use sparingly; relying on NDAs alone isn't an IP protection strategy.
- Why is NDA (Non-Disclosure Agreement) important for startups?
- NDA (Non-Disclosure Agreement) is a compliance concept that matters for startup founders because it shows up in fundraising readiness, financial decision-making, and operational discipline at the stage where mistakes are expensive to undo. Founders who understand it are better prepared for diligence, board meetings, and investor conversations.
- What category does NDA (Non-Disclosure Agreement) belong to?
- NDA (Non-Disclosure Agreement) is a Compliance term in the StartupCFO finance glossary, alongside other compliance concepts that founders, CFOs, and accountants use in startup operations and reporting.
- Where can I learn more about NDA (Non-Disclosure Agreement)?
- Beyond this definition, see the related compliance terms below, or explore StartupCFO's insights and tools that put NDA (Non-Disclosure Agreement) in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
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