Comments on: Scraping Ideas

By: Simeon Simeonov

Simeon Simeonov — Tue, 17 Apr 2007 02:24:35 +0000

Vinod, you make a great point about the need to protect IP vs. the need to network + recruit.

By: Vinod

Vinod — Mon, 16 Apr 2007 15:47:46 +0000

Enlightening! Will keep these ideas in mind during my next pitch!

Having said that, don’t you think that residual knowledge happens as a trail and not in silos? Let me elaborate – By the time I get to a VC to have a discussion, I have already spoken to a chain of people who’s connections lead me to the VC. At each relationship gate (as I call it), I leave residual knowledge. If the VC is smart enough (which, I am sure most of them are), he/she can easily scrap it up by just making a few phone calls.

IMHO, as an entrepreneur, if I start worrying about NDAs and other artifacts that constrain IP sharing, I would not be able to get off to having an effective communication with anybody.

By: Vladimir Dimitroff

Vladimir Dimitroff — Sat, 10 Mar 2007 20:24:23 +0000

You can only cheat some of the people some of the time. IMHO ethics and reputation work better than any legal framework. I am also not a big fanof NDAs, although I sign them when asked – but my personal principles control my actions far more than the piece of paper (which I instantly forget).

Seeding one team with the ideas of others: this can be a good practice, when properly done by an ethical party. I have cases where I’ve done this by bringing them together where I notice a synergy, resulting in anything from collaborative alliances to mergers. And a few mismatches, I have to admit, but it always happens with that elusive aspect of people we often call ‘chemistry’…

If the Tom Siebel story is true, it explains a lot about a culture that was widespread in his company, particularly in the growth years of ‘world conquest’. Many stories of Siebel behaviour in respect of alliance partners, channel partners and clients reflect a questionable integrity; not to mention the very act of sticking the ‘CRM’ label on something designed essentially as sales automation that does nothing for the ‘R’ in the acronym… but that’s from another book

By: Will

Will — Mon, 05 Mar 2007 02:27:05 +0000

many entrepreneurs dont understand this (and VC’s assumes that the entrepreneur does know) . . . to no fault of either party. . . . the entrepreneurs gets a rude awakening when they realize parts of their business plan gets implemented as a new company the EIR starts . . .

either way, I agree transparency and communication are key.

By: Simeon Simeonov

Simeon Simeonov — Sun, 04 Mar 2007 19:04:54 +0000

Will, EIRs are in the business of starting a company or, in some cases, jumping in to run one. So anyone who talks to an EIR implicitly should know that their business is being evaluated not on an exclusive basis but as part of the field of study for the EIR. So, yeah, EIRs end up with a lot of residuals but as long as they are open about the end goal, I don’t see that as a problem.

By: willhsu

willhsu — Sun, 04 Mar 2007 02:17:37 +0000

first time I’ve heard VC’s fess up to the existance of this practice . . . many times EIR’s institutionalize this “scrapping” too . . . thanks for being open.