You hear about Non-Disclosure Agreements (NDAs), but are they necessary if you are or are dealing with an accelerator?

No matter your business, you are tempting fate if you don’t have an NDA ready when dealing with outside parties. Lawrence Chaney, Partner at GPS Legal and Proseed mentor, explains. “GPS Legal is a full-service law firm with a healthy business practice with local and multinational clients. In both cases, we’ve seen many situations where disputes could have been mitigated or avoided completely if there was an NDA in place.”

Trust with Accelerators Needs to be Built and Protected – Especially in Bangkok

“You want to trust your business with all involved,” says Lawrence. “But you also should be prepared if that trust is broken. That’s where the NDA comes in.”

He explains further that whenever sharing confidential or proprietary information, an NDA offers a layer of protection in case that information is shared, inadvertently or not.

Be Clear on What is Confidential

You want to protect your information, so an NDA for an accelerator should be specific as to what is confidential. Meeting minutes, marketing plan, creative ideas? Outline what cannot be shared. Then, specify who, if anyone, the information can be shared with.

“Often both parties will have information that they want to keep confidential, so it’s important that these details are clear,” said Lawrence. “And don’t forget to have everyone sign to make it official.”

What Happens if Accelerators Don’t Use NDAs?

Imagine if you had a new product that you wanted to launch with a multi-media campaign. So, you approach a creative agency to pitch ideas for the campaign. If there’s no NDA in place, the agency could leak your product idea before your launch, risking tarnishing your product’s introduction or even encouraging competitors coming to market before you.

If that happens, you don’t have any legal recourse – you can’t sue. With an NDA, parties know what will happen to them if they disclose information they shouldn’t. This allows for a smooth working relationship.

Proseed can help

Proseed has the accelerator resources you’ll need to ensure your business thrives, such as legal insights from Lawrence from GPS. We know that businesses need more than just great ideas to succeed  – contact Proseed today