It sounds like the start of a really bad joke doesn’t it? But the truth is that this question is often asked by entrepreneurs and is probably one of the most infuriating questions VC’s and Advisors are faced with.
No legitimate VC or Advisor will sign an NDA they have to keep as many doors open as possible and it just shows naivety on the part of the entrepreneur.
Asking this question will in most cases lead to a – “We’ll get back to you.” – response and will almost certainly mean that your application will not be considered in any detail. In some cases the investor may sit you down and educate you about what its like in their world, that’s the best response you could hope for and probably means you haven’t “blown” your opportunity.
Investors and Advisors see thousands of applications every year and they cannot risk any litigation against them because one idea got funded whilst another didn’t. Just because ideas may be similar or even identical doesn’t mean the business plan, end product or most importantly the management team are the same.
Remember its not enough just to have a good idea you need to get that idea “Investment Ready”.
Adapted from Tech City News – Startup Surgery