Many inventors reach a point where outside funding becomes essential. Whether it’s a prototype, a manufacturing run, or entering the market, investors can provide the capital that makes innovation possible. But before sharing an idea with a potential partner, many inventors experience the same fear:
“What if the investor steals my idea?”
This concern is understandable—and in some cases, justified. That’s why understanding how to protect an idea before talking to investors is one of the most important early steps for innovators. Intellectual property (IP) law offers several reliable tools to help inventors pitch confidently without putting their invention at risk.
Below is a clear, strategic guide to help ensure that when you share your idea, you do so safely and smartly.
Avoid Public Disclosure Until You Are Protected
The worst thing an inventor can do is publicly reveal the details of an invention before securing protection.
Public disclosures include:
- Social media posts
- Website pages
- Trade show exhibits
- Crowdfunding campaigns
- Public presentations
Even informal discussions or showing a prototype in a café can count as disclosure.
Without protection, disclosures can:
- Eliminate your ability to obtain patent rights in most countries
- Start deadlines that shorten your patent filing options
- Make investors less willing to sign NDAs or negotiate
If you’re serious about raising capital, keep the invention confidential until proper IP steps are taken.
Use Non-Disclosure Agreements—When Appropriate
A non-disclosure agreement (NDA) is often the first tool inventors reach for. It creates a legal obligation preventing the receiving party from sharing or using your idea without permission.
However, many investors—especially venture capital firms—refuse NDAs. There are reasons for this:
- They hear hundreds of pitches a year
- NDAs create unnecessary legal risk for them
- They only sign NDAs for products already on the market or for highly matured technologies
So while NDAs can be helpful, inventors shouldn’t rely on them as the primary form of protection. When an NDA is possible, use it. When it isn’t, the next step becomes even more important.
File a Provisional Patent Application
This is the most powerful early protection an inventor can have before speaking with investors.
A provisional patent application:
- Secures a filing date
- Gives you 12 months to finalize your invention
- Allows you to use “Patent Pending”
- Lets you pitch freely without revealing unprotected secrets
- Extends your runway before needing a full non-provisional patent
Investors love seeing a provisional patent because it demonstrates strategy, seriousness, and forward planning. It also significantly reduces the risk of misappropriation, since stealing a patented concept is far riskier.
For most inventors, filing a provisional is the smartest, most cost-effective way to protect an idea before presenting it.
Document the Development of the Idea
While not a substitute for patent protection, maintaining detailed records strengthens your legal position. Documentation can help prove:
- When the idea was developed
- How it evolved
- What steps the inventor took to protect it
Effective documentation includes:
- A bound notebook with dated entries
- Cloud-stored files with timestamps
- Drawings, prototypes, and version histories
- Emails describing progress
This creates a clean paper trail showing you are the originator of the invention.
Share Only What is Necessary in the Pitch
Even with protection in place, not every technical detail needs to be shared. A strong investor pitch focuses on:
- The value of the invention
- The problem it solves
- The market opportunity
- The competitive edge
You don’t need to reveal the “secret sauce.” Investors care about opportunity and execution—not engineering diagrams.
Give them enough to understand the potential without giving away the core mechanics.
Understand That Most Investors Don’t Want Your Idea
This may sound surprising, but reputable investors don’t want to steal your idea. They want:
- Scalable business models
- Market demand
- A strong team
- Legal protection already in place
An idea without execution is useless to them. What matters is whether you can turn the invention into something profitable.
By taking the right protective steps, you remove red flags and position yourself as a serious inventor worth supporting.
Final Thoughts
Learning how to protect an idea before talking to investors is not just about preventing theft—it’s about presenting your invention in a professional, credible, and legally secure way. Provisional patents, NDAs, disciplined documentation, and controlled disclosures form the foundation of a safe and successful pitch strategy.
When inventors take these steps, they significantly reduce risk while increasing the chances of securing meaningful investment. Innovation deserves protection—especially when the opportunity to grow is right around the corner.
Looking to Protect Your Intellectual Property?
Please contact Arlen Olsen at Schmeiser, Olsen & Watts LLP at aolsen@iplawusa.com.
About the Author
Mr. Olsen, a former adjunct professor of intellectual property law, has over 30 years of experience in all aspects of intellectual property law. Mr. Olsen is a founding Partner of Schmeiser, Olsen & Watts LLP and a former United States Patent Examiner. Mr. Olsen has prosecuted numerous patents that have been litigated and received damages of over 60 million dollars. Additional activities include teaching seminars, appearing as a guest lecturer on intellectual property matters for corporations and educational institutions, and evaluating and consulting with clients regarding the scope, enforcement, and protection of intellectual property rights.
