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.
Related compliance terms
SOC 2 Type I vs Type II
Type I attests controls are designed correctly at a point in time; Type II attests they operated effectively over 6–12 months.
SOC 1
Attestation report focused on internal controls over financial reporting (ICFR). Relevant for vendors whose services affect customers' financial statements.
HIPAA Compliance for Startups
Healthcare Information Privacy regulation governing protected health information (PHI). Required for any startup handling patient data.
GDPR (for US Startups)
EU General Data Protection Regulation governing how you handle personal data of EU residents — even if you're a US company.
See this in action
Insights and tools where NDA (Non-Disclosure Agreement) shows up.
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 directly affects fundraising readiness, financial decision-making, or operational discipline at the stage where mistakes are expensive to undo. Founders who understand it have a meaningfully easier time in 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 daily 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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