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May 17, 2023

Why the "I Have an Idea, Sign My NDA" Mentality is Outdated in the AI Era

Why the "I Have an Idea, Sign My NDA" Mentality is Outdated in the AI Era


Imagine an entrepreneur excitedly approaching a tech professional with a groundbreaking AI idea, demanding they sign an NDA before sharing a single detail. This scenario, once common in the early days of tech, is resurfacing in the AI boom. Why? Because the barriers to entry in AI have plummeted, making it easier than ever to build a prototype. Yet, this accessibility is paradoxically pushing first-time founders back into the outdated mindset that "the idea alone is worth protecting."


The New Reality: AI Tools Democratize Innovation

The rise of open-source frameworks (e.g., TensorFlow, PyTorch), cloud platforms (AWS, Google Cloud), and pre-trained models (HuggingFace) has democratized AI development. Today, even non-technical founders can deploy AI solutions using no-code tools like Google’s Vertex AI or AWS SageMaker. What once required a team of PhDs and millions in funding now costs pennies and days of work.

This accessibility is a double-edged sword. While it empowers innovation, it also means that executing an AI idea is far easier than guarding it. The result? Founders mistakenly believe their "unique idea" is their secret weapon, leading to an overreliance on NDAs as a crutch.


The "Idea First" Fallacy

First-time entrepreneurs often equate their idea’s uniqueness with its value. They might think, “If I share my idea, someone will steal it and build it faster!” But this mindset ignores a key truth: execution beats ideas every time.

Consider this: How many apps or AI tools have you seen where the core concept was simple (e.g., “a chatbot for mental health,” “an app that predicts stock prices”), yet the success hinged on user experience, data quality, and market timing? The idea alone isn’t valuable—it’s the execution that turns it into a viable product.


Why NDAs Aren’t the Solution

  1. NDAs Are a Red Herring: Seasoned founders and investors rarely sign NDAs for casual pitches. Why? Because ideas are abundant, and execution is what distinguishes winners. As tech investor Marc Andreessen famously said, “Execution matters more than ideas. Ideas are worthless execution is everything.”
  2. Trust and Collaboration: Demanding an NDA early in a conversation can alienate potential collaborators. It signals naivety about industry norms and distracts from what truly matters: building a product that solves a real problem.
  3. The Marketplace of Ideas: With millions of developers and entrepreneurs globally, identical ideas emerge independently all the time. Keeping your concept secret won’t stop competitors—it just delays your progress.

The Real Problem: Wasting Time on the Wrong Priorities

While founders waste time drafting NDAs, their competitors are already prototyping. The time spent guarding an idea could be better spent:

  • Building an MVP (Minimum Viable Product): Testing your concept with real users.
  • Validating the Market: Ensuring there’s demand for your solution.
  • Assembling a Strong Team: Execution requires talent, and secrecy won’t attract engineers or marketers who want to contribute meaningfully.

What Should Founders Do Instead?

  1. Focus on Execution: Turn your idea into a tangible product. Use free tools to build a prototype and iterate based on feedback.
  2. Hone Your Pitch: Articulate how your product solves a problem better than alternatives. Investors care about your vision, team, and traction, not your idea’s secrecy.
  3. Embrace Openness: Share your work early. Feedback from mentors, users, and peers will refine your offering faster than any NDA.

Conclusion: The AI Era Rewards Action, Not Secrecy

The “idea-first” mentality is a relic of a bygone era. With barriers to entry lower than ever, the competitive advantage lies in speed, adaptability, and execution. Founders who cling to NDAs risk missing the boat—because in AI, the only way to stay ahead is to build, iterate, and move fast.

As the adage goes: “Ideas are like a million-dollar bill. If you give it to someone, you’re not losing a million dollars—you’re giving them a starting point. The real money comes from what you build next.”

So forget the NDA. Start building.

Qwen32B (20250625). Image by FLUX Schnell Quantized
Blogpost about how limited barriers of entry in AI business models are pushing first time entrepreneurs back to the “I just have an idea so sign my NDA” mentality.