[geeks] Discretion

[James]

I am starting a company too (second time around), and I can tell you that
even the smallest detail can hurt you if learned by the right person. We are
in negotiations for a merger and the other company told us that his top tech
doesn't have a non-compete agreement. We've discussed amongst ourselves
offering to hire away his top guy and then approach his customers to join
us. If we did so it would kill the other company in a matter of months. It
would so weaken his position in the merger that we could own his company for
very little money. He also entered these negotiations without NDA's or a
non-compete agreement.

Of course this foolishness is typical of him and that is why he needs to
merge to stay afloat.

In the end, NDA's and NCA's are worthless because it costs so much to
enforce them. Startups rarely can afford to persue someone in court. It
takes too much precious time and money. It's all about trust - who, when and
why. Even your partners might eat you alive.

Good luck!


>I'm attepmting to start a company. At this stage we're in the looking
>for finacing stage. Like all things it starts out small and grows to
>the point that it's beyond my immediate control.
>
>We've expanded to the point where I had to bring in people who are not
>directly involved in the company, but would be key employees when there
>is money to pay them. They've signed NDA's, but it has become obvious that
>they lack discretion.