At Sentiero VC, we have a simple policy for initial meetings: we don’t sign NDAs. Before you close this tab in frustration, hear us out, this isn’t about disrespecting your innovation or leaving you vulnerable.
The Reality of the Venture Landscape
Here’s the truth that every entrepreneur eventually discovers: your idea isn’t as unique as you think. That’s not a criticism; it’s just math. In a world of eight billion people and unprecedented connectivity, someone, somewhere, is almost certainly working on something remarkably similar to your concept. We meet with dozens of companies every month, many tackling variants of the same problem with comparable solutions.
If we signed an NDA with every founder we met, we’d quickly find ourselves in an impossible legal maze. Imagine being contractually prevented from funding Company B because six months ago we met with Company A, who had a vaguely similar idea but lacked the team and execution capability to succeed. That’s not a theoretical concern; it’s a practical limit that would paralyze our ability to serve the entrepreneurial ecosystem.
What Actually Matters
Here’s what founders sometimes miss: ideas are cheap. Execution is everything. The companies we back don’t win because they had a brilliant flash of inspiration in the shower. They win because they assembled an exceptional team, deeply understood their market, iterated relentlessly, and executed with precision.
When we have initial conversations, we’re not trying to extract your proprietary secrets. We don’t need your source code, customer lists, or technical specifications. We want to understand your market opportunity, your team’s background, your business model, and your vision. All of that can be discussed without revealing anything truly confidential.
Protection Without Paperwork
If we ask a question that ventures into genuinely sensitive territory, simply tell us it’s protected information. We respect that boundary completely. Experienced VCs know the difference between understanding your business and accessing your trade secrets. A founder who thoughtfully protects their IP while engaging in open strategic conversation demonstrates exactly the kind of judgment we look for.
When NDAs Make Sense
Once we progress to due diligence, when we’re seriously evaluating an investment and need access to detailed financial data, technical architecture, or customer information, NDAs absolutely make sense. At that stage, the relationship has evolved from exploratory conversation to serious business negotiation, and appropriate protections benefit everyone.
The Bigger Picture
This approach isn’t about power dynamics or legal convenience. It’s about creating an efficient, functional ecosystem where capital can flow to the best opportunities. Every hour spent negotiating NDAs for preliminary meetings is an hour not spent actually evaluating businesses, supporting portfolio companies, or connecting founders with resources.
Trust that your competitive advantage lies not in secrecy, but in your ability to execute better than anyone else. That’s what we’re betting on anyway.