From time to time, we are asked to sign an NDA. Please be aware that most VCs and angels will always say no to that request.
On our website we say:
"Since we receive so many plans our policy is not to sign NDAs (non-disclosure agreements) or confidentiality agreements. Robin Hood prides itself on our practice of the highest respect and care of the confidentiality of all information received; aiming to treat you as we ourselves wish to be treated. However, you should not, under any circumstance, forward confidential or proprietary information to us. "
We can't sign them for several reasons... first of all, it is not a coincidence that great ideas come to multiple companies... smart companies are trying to fill a market need, and its not unusual that more than one entrepreneur sees the same need at the same time. Secondly, we invest in areas where we have expertise. This means that our members generally are deep into a particular industry, and so signing an NDA would make it difficult for them to work in their industry.
Our suggestion is for you to write an executive summary that conveys enough of what is different to get us excited enough about your company to want to talk to you in person, but not so much that you are putting the company's special sauce at risk. It's a fine line, but your professionional service providers should be able to help you balance this.
For more information, see http://venturehacks.com/page/3. They do a nice job of describing this issue from the entrepreneur's perspective.
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