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Why we don't sign NDAs
dec. 14, 2022

Why we don't sign NDAs


Your goal is to attract investors

 

You shouldn’t worry about NDA’s. We understand that you want to protect your business by preventing your trade secrets and ideas from getting into the wrong hands. But we are in the business of investing in ideas and not about stealing your idea and starting our own business.  

 

The rule of thumb for an entrepreneur is never to ask a venture capitalist firm to sign an NDA. Most VCs are highly vocal, open, and public about their refusal to sign NDAs. So, when entrepreneurs request for signed NDAs, they may be seen as naive and inexperienced.

 

There are several reasons why we don’t sign NDAs:

 

Share the cookie, not the recipe

If you have something super-secret that no one else should know, just don’t tell. It is totally up to you on what they want to show and what to hide. An NDA can be required later in the process, but never before the term sheet is signed.

 

We operate on the basis of trust

Developing a successful relationship with requires trust. When you approach an investor to invest in your business and then ask to sign a non-disclosure agreement, it is perceived as a signal that you don’t trust the investor or you don’t understand the early-stage financing system. A successful investor always maintains the trust of the entrepreneur.

 

We have a reputation to maintain

At the time an entrepreneur is pitching a business idea, we could be looking at three or four similar deals. So, if we sign an NDA and fund another similar deal, it would make the entrepreneur seem like we have stolen their idea. If it becomes known in the market we reveal confidential business secrets, our reputation would be damaged severely. With a positive reputation, we get great investment opportunities.

 

We want you, not us, to work on the idea

We want entrepreneurs and their team and not their ideas. An idea is easy to come by but pulling off that idea is something that requires blood, sweat, and dedication. The whole point of investing in your business is to get the you to be successful, which will only happen when your business accelerates. Therefore, we prefer to be coaches and mentors and leave the hard work to you and your team.

 

Reviewing NDAs for all startups is unrealistic

Our role is to invest money and provide support to companies exhibiting high growth potential. We experience high rates of failure because of the uncertainty with unproven and new enterprises. This also means that each year we review 200 to 300 companies in order to make 3 to 5 investments. Having to sign an NDA for each opportunity just takes to much time, even without accounting for tracking agreements across NDAs over time, which gets exponentially more complex with each additional NDA. 

Sources:



Why we don’t sign NDAs, Synvest Capital

Why Most VCs Don’t Sign NDAs,  Brad Feld (Co-Founder of Techstars)

Why VCs Don’t Sign NDAs, Fred Wilson (Founder, Union Square Ventures)

The Venture Capital Wishlist ,  Guy Kawasaki, Angel Investor


17 jan., 2024
The Ghent-based scale-up streamlines work instructions, training, and quality controls. Written by Joris Hendircks Brussels, Dec. 14 – Recently Batist Leman, CEO Azumuta, had an interview with the Trends Business Magazine. There, Batist shared his views on the most significant challenges to our modern-day manufacturing scene, such as the skills gap issue, increasingly tight regulations, and unchecked international competition. To address these challenges, Batist conveyed his “disruptive innovation” solutions and how using Azumuta’s one-stop manufacturing software will alleviate even the most complex challenges. The original article was written in Dutch, translated below: Azumuta has developed an integrated platform that helps the manufacturing sector to streamline work instructions , training, and quality controls – with better employee versatility and productivity as the main impact. This is something that the manufacturing sector urgently needs: the Ghent-based scale-up, with clients such as Atlas Copco, Novy, and Nitto, has recently raised EUR 2,8 million to speed up its international growth – as explained by the CEO Batist Leman “Any production process is becoming more complex due to the increasing quality requirements and regulations. This, combined with a tight labor market, a lower-qualified workforce, and rising competition from abroad, makes digitalizing the production processes a must for any manufacturer who wishes to survive.” “The increasing complexity makes it challenging for shop floor operators to know precisely what they’re supposed to do. As a result, quality issues will emerge, and operators will take a long time to be properly trained. Therefore, our system offers a digital assistant for shopfloor operators, something that’s often overlooked even today.” Disruptive innovation “In the era of digital transformation and industry 4.0, where technological advancements bring ground-breaking changes for manufacturers, a critical element is often neglected: the role of operators. This is where Azumuta steps in.” “Our software knows well the unique potentials of all operators and fully integrates them into the digitalization process. While many companies focus on large-scale technological upgrades, Azumuta offers a new approach by emphasizing the crucial human element. Such software is more relevant than ever, as proven by the strong demands from domestic and international clients, ranging from small & medium-sized enterprises to multinationals. These companies, spread across vario us industries and regions, fully understood the values of our approach to this disruptive innovation.” “Azumuta was designed to streamline work, improve communications, and support efficient decision-making processes on the shop floor. With contextual information, built-in error detection systems, and user-friendly & intelligent interfaces, operators will know precisely what they must do while the management obtains real-time information from these data. By integrating it into the existing production systems, you can immediately achieve sustainable efficiency improvements.” Operational excellence “Often, quality controls are done at the end of the production process, which means defects are only detected late. Therefore, our system uses inline quality control. In combination with digital work instructions, all parameters are continuously captured, such as ticking off completed tasks, measuring weights and accepted deviation tolerance, etc. If there are deviations or errors, you can intervene earlier, where the products’ quality is significantly improved, and they don’t have to be disposed of due to defects. That’s an essential component in the ESG strategy.” Agile workforce “Companies often have little knowledge of their workers’ complete skillset. Moreover, workers can always leave or retire. This means that some specific shop floor know-how can be lost. Our system lets users know which employee has which expertise, in which skill set workers should be further trained, and which skills haven’t been fully mastered yet in a team. Furthermore, it’s not easy to find new workers at the moment.” “Often, companies have to hire workers with a training and education background that is lower or doesn’t fully match what is expected. They might not understand the production process, making on-the-job training more important than ever. Digital work instructions and inline quality control offer top-notch support to deliver high-quality work. This module also allows you to comply with the legal requirement to show the number of training hours that your workers have undergone. All of this is fully automated, removing a significant administrative burden.” “Previously, decisions were taken top-down, and workers on the shop floor were supposed to simply implement these decisions. However, we believe that shop floor workers possess significant know-how on how things can be done more efficiently. To engage them, we have added a communication module where they can swiftly indicate problems and share their ideas. They can also get feedback in the same way.” Strong growth “In conclusion, we can say that our platform enables manufacturing companies to improve their operational efficiency and time-to-market rate. Our unique focus on operators allows our clients to organize their workforce in an agile manner. This makes our platform a perfect addition to the existing MES and ERP systems. The quick and profitable growth of Azumuta, the success of our clients, and increasing demands from abroad mean that analysts and investors recognize the importance of this market. Recently, we have raised EUR 2.8 million to support our effort to fulfill increasing international demands.“ Contact contact@azumuta.com https://www.azumuta.com/company/contact/
16 nov., 2023
26 okt., 2023
Data catalog as a centralized and searchable repository for an organization's data assets. [Ghent, 12.10.2023] TriFinance has recently entered into a partnership with dScribe, an innovative data catalog solution provider headquartered in Ghent. A data catalog, in essence, serves as a centralized and searchable repository for an organization's data assets. "During analytics projects," Maarten Lauwaert , Expert Practice Leader at TriFinance says, "we often witness discussions on the definition and management of KPIs. At the start of a project, people create Excel files containing KPI definitions, but forget to update them after the go-live. dScribe helps business users to locate the right data and reports, and manage KPI definitions.” For TriFinance , implementing dScribe at clients is a way to strengthen their position as a business partner, enhancing their business acumen and analytics expertise. One Stop Data Shop dScribe is a one-stop-shop to catalog , document and discover anything data-related. The solution is cloud-based, integrates with different reporting solutions (including Power BI and Azure Analytics) and gives the users a single entry point to find, understand and access all reports & data, no matter where they are stored. Moreover, KPIs and business knowledge can be defined in dScribe and are linked to the reports where they are available. Business users will always have insight in the correct KPI definitions , and in the parts of the reporting environment where these KPIs are being used. “For our customers, dScribe is a big first step in better governing their reporting environment,” Maarten Lauwaert says. dScribe: a Collaborative Data Compass Pieter Delaere, CEO at dScribe: “Employees who have access to meaningful data are best equipped to drive their organizations forward. Despite substantial investments in data and analytics, many organizations still grapple with the transition to widespread data-driven decision-making and innovation. Often, the root of this challenge is a lack of accessibility and comprehension of the available data and reports. We're on a mission to bring data front and center for every curious mind eager to drive their organization forward. For that reason, we call our solution a ‘Collaborative Data Compass’." "Business users often struggle to locate the right reports and KPIs," says Maarten Lauwaert. "Their understanding of the full analytics solution is not always clear. Checking a report without knowing the exact definitions of the KPIs slows down the adoption of the analytics solution. That's why our partnership with dScribe, offering a business-oriented and affordable data catalog solution that integrates well with Microsoft Analytics, excites us. We believe that this solution will help our customers to accelerate the adoption , usage and governance of their analytics solution." Maarten Lauwaert, Expert Practice Leader Data & Analytics, TriFinance About TriFinance and dScribe About dScribe Founded in Belgium in 2021, dScribe is dedicated to guiding organizations toward data-driven brilliance. The team is passionate about empowering employees with more streamlined access to meaningful reports and data. They believe their customers deserve an elegantly designed, user-focused data knowledge solution. Leveraging a proven and continuously refined metadata management framework, along with out-of-the-box integrations, dScribe promises increased data clarity and adoption from day one. About TriFinance TriFinance is an innovative service provider with a focus on Finance & Advisory in the Netherlands, Belgium, Germany and Luxembourg. Combining transition and support, pragmatic advisory and implementation, people solutions, and training, the company offers a new combination of services, backed by a permanent pool of highly specialized and flexibly deployable project consultants. Headquartered in Amsterdam, TriFinance has branches in Rotterdam, Antwerp, Ghent, Brussels, Hasselt, Louvain-la-Neuve, Roeselare, Hamburg, Munich, Düsseldorf, Frankfurt, and Luxembourg. As a network organization with a strong focus on human development, knowledge sharing, innovation, and organizational development, it belongs to Parklane Insight, a European growth company with 800+ MeIncers. Its mission is "Furthering People for Better Performance in Do-How.” Contact Maarten Lauwaert, Expert Practice Leader Data & Analytics, TriFinance: maarten.lauwaert@trifinance.be Pieter Delaere, Co-founder & CEO dScribe: pieter.delaere@dscribedata.com
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