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Don't Ask Your Co-Founder to Sign an NDA

As someone with both technical engineering experience and product design experience in the startup world, I regularly receive outreach from first-time founders and aspiring entrepreneurs. These conversations follow a predictable pattern that's worth examining, particularly given how the recent AI boom has amplified certain misconceptions about building high-growth tech companies.

The NDA Red Flag

The most reliable early indicator of how these conversations will go is an NDA request for the initial evaluation chat.

"We'll need you to sign an NDA before we discuss the details."

My standard response is straightforward: if you're requiring an NDA just to explore whether we might work together, and that agreement restricts my ability to work in major industry segments, then the idea likely isn't as differentiated as you believe. This is the same reasoning why VCs will walk you to the door or ignore your email if you cannot freely talk about your startup without an NDA.

It's not about wanting to steal ideas. It's about what the NDA request reveals about your understanding of how successful companies are built. When someone leads an initial conversation with legal protection rather than collaborative excitement, they've demonstrated a fundamental attribution error: they believe the primary value of a startup lies in the idea itself, rather than in the execution.

In my experience, founders who prioritize secrecy over partnership consistently struggle with follow-through. Furthermore, their lack of transparency damages their ability to build strong teams. Throughout my career, I've encountered leaders who say one thing and do another, or delay important conversations until the last minute. This approach might work in certain industries, but it's toxic for early-stage startups that depend on trust and alignment.

Equity

The equity discussions that follow are often equally telling. I've been offered everything from 1% equity to build an entire product and hire an engineering team, to 30% as a co-founder with no funding, no product, no market, and no connections.

These proposals reveal a fundamental disconnect about value creation in early-stage startups. They suggest a view of technical work as mere implementation rather than co-creation. Currently, I bring 5+ years of engineering experience at fast-paced, high-growth startups from pre-seed to Series E, small business ownership experience, graphic design and product design capabilities, and a strong industry network. For some startups, I've even invested five to six figures of my own money to help get products to market.

The founders who approach partnerships correctly start with 50/50 discussions and view technical co-founders as true business partners, not hired help who happen to get equity. If they want hired help, they can hire offshore contractors in Latin America, Asia, or Europe. But if they want a co-founder, they need to understand that co-founders create value together, not in a hierarchy.

AI and the Execution Misconceptions

The current AI boom has intensified these patterns. I've noticed an increase in founders who believe AI has commoditized technical implementation and execution (tools like Lovable, Bolt, V0 amplify this). They see coding as something that can now be automated away, missing the crucial distinction between generating code and architecting scalable systems.

What's particularly concerning is encountering responses to my business questions that are clearly AI-generated, complete with telltale formatting patterns like em-dashes and curly quotes. This suggests some founders are more comfortable delegating strategic thinking to language models rather than engaging in substantive business discussions with potential partners. If you're using ChatGPT to respond to a potential co-founder's questions, you're not ready to be a CEO.

The Questions That Matter

When evaluating potential partnerships, I ask straightforward business questions that are fundamental to any business, startup or not:

  • What are your unit economics?
  • What's your customer acquisition strategy and cost?
  • What's your sustainable competitive advantage?
  • What prevents better-funded, more experienced teams from executing this idea?

These aren't gotcha questions. They're fundamental to any serious business discussion, and I'm not signing an NDA for the answer to these. Yet they consistently end conversations with founders who haven't thought beyond the initial idea. The pattern is so predictable that I've started asking these questions earlier to save everyone time.

What Actually Works

The most successful founder interactions I've had share common characteristics. These founders respect technical contributors as business partners. They've done basic homework like reading startup books, going through YC Startup School library, or reading Paul Graham's essays. They understand unit economics and have thought through competitive dynamics. Most importantly, they approach partnerships as collaborative relationships rather than hiring exercises.

The best conversations happen over coffee or meals, between people who respect each other's time, energy, ideas, and contributions, and are genuinely excited about building something meaningful together. These founders understand that successful startups require both vision and execution, and they value both equally.

Why This Pattern Persists

The "ideas guy seeking technical implementation" dynamic isn't new, but it's worth examining why it persists. There's a fundamental attribution error at work: overvaluing ideas relative to execution, combined with underestimating the business acumen that experienced technical professionals often possess. The best engineers understand their work through the lens of business impact and user value.

This pattern becomes particularly pronounced during technology booms, when the perceived barrier to entry appears lower and potential rewards seem limitless. I've seen it happen with mobile apps, Web3 and crypto, and it's happening again with AI. The reality is that successful technology companies require deep technical judgment, iterative problem-solving, and sustained execution. These are capabilities that become more valuable over time as tools and technology become more sophisticated.

For non-technical founders reading this: approach technical partnerships with genuine respect for what technical co-founders bring to the table. Skip the NDAs for initial conversations. Prepare thoughtful answers to basic business questions and don't use ChatGPT to answer them.

Ideas are abundant; successful execution remains scarce. The founders who understand this distinction are the ones worth partnering with. Everyone else is just looking for expensive contractors they can't afford to pay.

Related


If you've made it this far, check out the wizard-themed version of this post: Don't Ask Your Wizard to Sign a Magical Contract.