NDAs have their place – we’re open to signing one later in the process if there’s something specific and sensitive on the table. But first contact isn’t that moment.

This often comes up when founders ask us to sign NDAs before reviewing a pitch deck. It’s a fair instinct. When you’re building something valuable, you want to protect it. But in early-stage fundraising, NDAs don’t work the way most founders expect.

There are a few simple reasons for this:

1. You shouldn’t need to share highly confidential information in an initial meeting. A strong deck should be enough to explain what you’re building, why it matters, and why your team is best placed to execute. More sensitive information comes later, once and if there’s real interest. That’s the right point to handle confidentiality more formally if needed.
2. Fundraising is, in many ways, a process of building momentum. Requiring an NDA upfront introduces friction right at the point where speed matters most. Before we could engage, we’d need to review the agreement ourselves, then possibly get it reviewed by our lawyers. Once executed, we’d need to actively manage compliance for the 12 or 24 months it remains in force – tracking what was shared, with whom, and ensuring nothing we do across the rest of the portfolio inadvertently triggers a breach. Multiply that across hundreds of opportunities each year and the overhead becomes unworkable. In practice, most investors won’t engage under those conditions. It simply doesn’t scale.

For these reasons, asking for an NDA at the outset isn’t standard practice. As Alex Hormozi puts it:

A more effective approach is to be deliberate about what you share and when:

1. Keep sensitive details out of your initial deck. You shouldn’t need to disclose anything proprietary to get a first meeting. A clear, high-level view of what you’re building is enough to establish a fit.
2. Take the time to research Shearwater before sharing more. Look at our portfolio and the companies we back. If there’s a potential conflict, it’s better to know early, and we will always be transparent if that’s the case.
3. And remember, the best protection isn’t secrecy, it’s building something valuable. As Derek Sivers puts it, ideas are just a multiplier of execution, the value comes from building, not just thinking about the idea.

At Shearwater, we’re in it for the long game. We treat every founder with respect. We’ve been on your side of the table, and everything you share with us is treated as confidential.

This article was inspired by: Why Most VC’s Don’t Sign NDAs by Brad Feld and Why VCs won’t sign your NDA by Stéphane Nasser.