On the intellectual property question, the investors (group) say they won't sign an NDA because they get to many proposals to have time to sign an NDA for each and every one. They say they have a reputation that I should rely on to not to disclose my IP, and to tell them what my idea (IP) is without an NDA. They also want 10X the investment amount for the redemption option. Does this sound normal to you?
Thank you, Kirk, and sorry for bothering you on a Sunday. So I guess I'm stuck in not knowing if I can trust them, and insulting them by insisting on an NDA. It sounds like they feel they are above signing NDA's in place of trusting their professionalism. I don't want to alienate myself by pissing them off, so what can I do?
Thank you again, Kirk, that is good idea to ask them to compromise by using their own NDA. It's interesting that maybe they are watching too much Shark Tank. I read their submittal form for being a contestant on the shoe, and nowhere is an NDA form required, and they say everything is at your own risk. But I guess it would be a public relations nightmare for the Sharks to go behind the backs of the presenters, so everything is out in the open. If this project of mine gets funded somehow, I know I'm going to have a need for your expertise again. Thanks. Joe
Oh, I forgot to find out if you think 10X the investment amount they want in return is way high, or somewhere in the normal range. I thought that 3X the investment amount was normal. They don't know how much I'm asking for yet, but that should be negotiable right? I'm asking for $1M in exchange for 30%.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).