NDA (Non-Disclosure Agreement)
A contract protecting confidential information shared between parties.
An NDA legally binds parties to keep shared information confidential, used when discussing sensitive details with partners, contractors or potential acquirers. Note that most investors decline to sign NDAs to review pitches, as they see many similar deals.
Examples
A startup signs an NDA with a manufacturing partner. — An acquirer requests an NDA before due diligence.
How it relates to The Startup Foundry
The Foundry helps founders understand when NDAs help (and when, as with most investors, they don’t).