etiquette in protecting yourself?

[creasemedia]

Hi everyone,

I have an interesting dilemma, I've been courting 2 potential investors for my start-up web company in Spain. Both of them have found me through my announcements in the internet and phoned me requesting my business plans. One of them is in Italy who's reluctant to give his company details but has signed & faxed an Non-disclosure Agreement (NDA) I've forwarded just with his name and address. Another gentleman, also from Overseas, has met with me several times over coffee. He was offended by the DNA request and refused to sign it unless I present him with a proper business plan; he wishes to sign it when he's happy to pursue with the investment in due time.

Are these type of behaviors normal or should I be alarmed by them at all?

I'm afraid, I'm quite "green' in this area, what is the 'fine line' between wanting to protect yourself from sharks who can steal your ideas and scaring off legitimate investors? Any suggestions are welcome thanks.

kevin

[globalart4u]

if they are legitimate then they are happy to sign an nda, though remember some nda's are not worth the paper they are on. you need to make them tight. if someone wants to see your plan before signing an nda then i would not go near them. if the italian has signed an nda but refuses to give his company details then i would question it as it does not sound very honest. i have had a few people sign ndas with me for various projects and have always investigated them thoroughly before giving then an nda. i would look for someone else.

[Ian J]

Discussing a business proposition with someone is a two way thing and you need to know something about the people that you are about to disclose your ideas to before you do so.

An NDA isn't worth the paper that it's written on if you can't litigate against anyone who abuses it - for whatever reason

[miketombs]

Anyone serious about investing would be up to speed about confidentiality/non-disclosure agreements. It's not an insult to ask for them - it's common practice.

.... and as for the Italian who won't give his details, I would advise you to walk away.