Ask HN: Standard NDA conditions during deeptech due diligence?
5 points
2 days ago
| 3 comments
| HN
I have co-founded a deep tech startup in the biotechnology sector. After a meeting with some of their partners, a French fund has expressed interest in investing. They have appointed a domain expert and are asking us to sign a non-disclosure agreement (NDA). We're wondering about standard terms for such agreements. What are the standard penalty fees and conditions?

My co-founder is rightfully concerned that the NDA terms we've been sent are too lenient in case of information leaks. We work in a competitive drug development space, and any information leaks to a large pharmaceutical company could cause significant harm to our business. We are far from idea stage.

The expert appointed by the fund is currently an academic, but with some clear connections to the pharmaceutical industry.

codingdave
2 days ago
[-]
This is very much an "ask your own attorney" type of question.
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gus_massa
2 days ago
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I don't understand why they ask for a NDA. Are they going to share some secret info with you? IIUC the info flows in the other direction.
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brudgers
2 days ago
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Do you trust the potential investors?

Have you asked the potential investors for references?

You have do due diligence, too.

My advice is don't do business with people you don't trust.

Good luck.

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