Seeking help from BHW users about potential investors (2nd part)

[AnotherOne]

I had a chance to meet my ex boss today to discuss few issues I had with my experience letter and other things HR gave me.
After a lot of thinking (and choosing words in my head) I finally presented my proposal to him. I gave him overview of the product and he seems genuinely interested and asked for a detailed proposal.

The fear I have is exactly what @qrazy asked in the other thread.

Assume you have shared your greatest idea with him, what would stop him from developing the product and market it himself, when he has the investment and the resources?

I thought that I would skip the main details but he, today, asked for a detailed proposal. The product proposal I have include all the features with details and how much time is required to develop, design, and QA that particular feature. It's a very detailed proposal and anyone with a team or technical background can easily use that to create the product himself.

The questions I have:

1. How to politely deny the request of him to share all details about my project?
2. What's the best way to send him proposal but without the 'inner' details of the product?
3. Is it okay to ask for a NCA (Non Competition Agreement) before sharing further details?
   1. Do you think that he'll understand the request and move further instead of saying no?
      
   2. (If accepted) What details should be shared before the NCA?
   3. What if he said that he'll not sign an NCA? Should I move further or should I quit?
4. Do you think its a good idea to write a paragraph in the email which portrays my fear that the idea can be stolen or "why my team can do it" with relevant info about the team?
5. Is it okay to use any of the above thing? or should I send him all details?
6. What should you do if you have an investor interested in your idea but you don't want him to use your product/idea?
7. What should be in my hand before contacting other investors?

Sorry for my noob questions.
This is the first time I am contacting investor for my idea/company.
Could you please point out the best way to write a killer pitch? (The one I have is too revealing)

Previous thread:
http://www.blackhatworld.com/seo/contacting-ex-boss-for-investment-your-opinion-matters.868988/

 

[qrazy]

Your case is bit unique as you're not approaching a pure investor, but your ex-boss who also happens to be in the same industry as yours.

Usually when you contact any investor, you wouldn't disclose any confidential or technical details of the product right away. These will be discussed in subsequent meetings when both of you are comfortable and have a mutual trust.

In your case, your ex-boss would be more like a business partner than an investor. Try to discuss only the business aspects of the project and keep the technical/core details for later meetings. So IMO, you should sign a NDA (Non-Disclosure Agreement) before sharing all the details of the project.

Your best is to contact any IP(Intellectual Property) attorneys to get right guidance on protecting your interests.

 

[virtualpurity]

Business is cruel - protect yourself.

Its not a shame to tell him that you dont want to provide all details considering that you are both in the same industry, and its quite logical actually.

If he genuinely likes your product and have intentions in working with you he will agree to the NDA, and than you can trow in your pitch.

 

[AnotherOne]

This is about an app with high market demand but with little competition.
If I can't share the flow and what the is about then how should I gain his trust and secure the investment? Is it fine to send a generic message with different details like 'what this proposal is about', 'why invest in my idea/company', 'why I'll use my company/resources', 'where you investment will be used' etc.
Finding a attorney with high level of technical details is very difficult for me. The attorney who helped me previously (in creating legal contracts) do not possess IT technical skills.
Do you think it's okay to write 'My attorney said not to share confidential/technical details' in a polite way?

Your case is bit unique as you're not approaching a pure investor, but your ex-boss who also happens to be in the same industry as yours.

Usually when you contact any investor, you wouldn't disclose any confidential or technical details of the product right away. These will be discussed in subsequent meetings when both of you are comfortable and have a mutual trust.

In your case, your ex-boss would be more like a business partner than an investor. Try to discuss only the business aspects of the project and keep the technical/core details for later meetings. So IMO, you should sign a NDA (Non-Disclosure Agreement) before sharing all the details of the project.

Your best is to contact any IP(Intellectual Property) attorneys to get right guidance on protecting your interests.

It is logical and the person is really down-to-earth but what if it hurts his ego?
I am saying that only because I was working as an employee till now (in his company) and now I am asking him to follow my rules (NCA thing).
Since it's an app with low competition but high market demand how could I make him like my product without sharing much details?

Business is cruel - protect yourself.
Its not a shame to tell him that you dont want to provide all details considering that you are both in the same industry, and its quite logical actually.
If he genuinely likes your product and have intentions in working with you he will agree to the NDA, and than you can trow in your pitch.

 

[jazzc]

It is logical and the person is really down-to-earth but what if it hurts his ego?
I am saying that only because I was working as an employee till now (in his company) and now I am asking him to follow my rules (NCA thing).

From: AnotherOne
To: Ex-Boss

Hi Mr. ExBoss,

I've been preparing the extended proposal document that details everything you need to make an informed decision, it should be ready very soon. I will be forwarding it to my lawyer so that he can do his thing. Could you please return to me the attached NCA file with your signature so that I can include that as well? He specifically ask me for it so that would be great.

Thank you,

AnotherOne

 

[Malcolm Max]

It's business and if you think your potential investor might steal your idea, don't think twice, get him to sign a nda first.

In the nda, just say he can't share those details or use them himself. Standard nda will do fine.

 

[virtualpurity]

I am saying that only because I was working as an employee till now (in his company) and now I am asking him to follow my rules (NCA thing).

That right there is your mistake, you are looking at him as your boss which he is not anymore.

You are pitching in your own great excellent genuine idea/product to your potential future business partner.

So protecting your business only comes natural and If he doesnt want to sign the NDA than there are plenty of other fish in the sea.

Use jazzc example above.

 

[toml3030]

Since your investor is in the same industry its going to be real easy for him to steal your idea. Just remember op..nda's are only as good as how it is written legally and how much cash you have to litigate. If you have that much faith in the idea, spend a few bucks to draw up an ironclad legal document from an attorney.


I thought that I would skip the main details but he, today, asked for a detailed proposal. The product proposal I have include all the features with details and how much time is required to develop, design, and QA that particular feature. It's a very detailed proposal and anyone with a team or technical background can easily use that to create the product himself.

The questions I have:

1. How to politely deny the request of him to share all details about my project?
2. What's the best way to send him proposal but without the 'inner' details of the product?
3. Is it okay to ask for a NCA (Non Competition Agreement) before sharing further details?
   1. Do you think that he'll understand the request and move further instead of saying no?
      
   2. (If accepted) What details should be shared before the NCA?
   3. What if he said that he'll not sign an NCA? Should I move further or should I quit?
4. Do you think its a good idea to write a paragraph in the email which portrays my fear that the idea can be stolen or "why my team can do it" with relevant info about the team?
5. Is it okay to use any of the above thing? or should I send him all details?
6. What should you do if you have an investor interested in your idea but you don't want him to use your product/idea?
7. What should be in my hand before contacting other investors?

Sorry for my noob questions.
This is the first time I am contacting investor for my idea/company.
Could you please point out the best way to write a killer pitch? (The one I have is too revealing)

Previous thread:
http://www.blackhatworld.com/seo/contacting-ex-boss-for-investment-your-opinion-matters.868988/[/QUOTE]

 

[AnotherOne]

Thank you very much jazzc for the content. You made life easy for me.
One thing is that my ex boss lives in a different country. Do you think that the NCA/NDA will apply to him no matter where he lives?
Could you please point out an NCA which is not offending? I found many but they were offending (in terms of words).

From: AnotherOne
To: Ex-Boss

Hi Mr. ExBoss,

I've been preparing the extended proposal document that details everything you need to make an informed decision, it should be ready very soon. I will be forwarding it to my lawyer so that he can do his thing. Could you please return to me the attached NCA file with your signature so that I can include that as well? He specifically ask me for it so that would be great.

Thank you,

AnotherOne

Thank you for your reply. Would do same.
Could you please point out an NDA with NCC in it?

It's business and if you think your potential investor might steal your idea, don't think twice, get him to sign a nda first.

In the nda, just say he can't share those details or use them himself. Standard nda will do fine.

Yes, that's my mistake that I am still thinking of him as my boss. Had to let go of that thought.
Thank you for pointing out.
What type of data/information needed for other fishes in the sea? and what's the best place to find them? Getting investment from angel investors is not an easy task. Is there a place where we can get investment easily?

That right there is your mistake, you are looking at him as your boss which he is not anymore.
You are pitching in your own great excellent genuine idea/product to your potential future business partner.
So protecting your business only comes natural and If he doesnt want to sign the NDA than there are plenty of other fish in the sea.
Use jazzc example above.

I am in contact with an attorney and would love to get his input on this too. The issue is that he's not technical (in IT field) and couldn't help properly in this particular situation but I will surely need his help in general process.

Since your investor is in the same industry its going to be real easy for him to steal your idea. Just remember op..nda's are only as good as how it is written legally and how much cash you have to litigate. If you have that much faith in the idea, spend a few bucks to draw up an ironclad legal document from an attorney.