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Cult Of NDA

The cult of the NDA

Why the cult of the NDA?

In our culture, we've elevated the creative new idea to be the core factor in determining whether a startup succeeds or fails. Unfortunately, nothing could be further from the truth, but there's a chain of logic which leads inextricably to the NDA:

1) A unique new product or idea is essential to a startup's success.

2) The first company to capitalize on a new product or idea has a unique and sustainable advantage.

3) I have a unique idea for a new product or service.

4) If others find out about my unique idea, they could bring it to market first, and steal the advantage from me.

5) Therefore, by disclosing my idea only under the strictest confidentiality, I preserve an advantage for myself.

Each of these five points is wrong in most cases, though they are a comforting fiction for a young company faced with long odds against success.