Sensitive deal information needs protection in commercial real estate investing. When financial projections, property details, and investment strategies circulate without controls, sponsors and investors face serious risks.
For sponsors raising capital under Regulation D offerings, particularly 506(b), unauthorized sharing of deal information creates significant compliance vulnerability. But until now, many platforms have forced sponsors to choose between complete openness and overly restrictive access – neither option adequately serving their capital raising needs.
InvestNext’s new one-sided NDA feature solves this problem by integrating legally-binding confidentiality agreements directly into the investor experience. Let’s explore why this matters and how it works.
When LinkedIn Posts Put Your Deal at Risk
The problem is straightforward: For example, co-sponsors and potential investors could screenshot deal information and share it in inappropriate places—personal blogs, LinkedIn, and other social media platforms.
“We’ve heard anecdotally across our industry of instances where someone goes rogue and posts screenshots of a deal room on LinkedIn or other social media. This puts the lead sponsor in a position of great risk and vulnerability.” – Liva Lagestrand Director of Product
These unauthorized disclosures create serious compliance concerns for 506(b) offerings where general solicitation isn’t permitted.
Beyond compliance risk, these information leaks undermine investor confidence. When sophisticated investors see deal information circulating freely on social media, they question whether their personal financial data will be properly protected.
More importantly, your competitive advantage depends on controlling proprietary information. When acquisition targets, investment strategies, or financial structures become public, you lose negotiating leverage and market positioning.
The Limitations of Current Approaches
The industry has struggled with information protection. Before InvestNext’s integrated NDA solution, sponsors faced limited options:
- Completely open deal rooms: Making information accessible to everyone but risking unauthorized sharing
- Entirely locked deal rooms: Requiring pre-approval for access to even basic information, creating friction in the investor journey
- Manual NDA processes: Sending documents, tracking signatures, and manually adjusting permissions – creating administrative bottlenecks
Sponsors need a middle path – one that protects sensitive information while maintaining the speed and efficiency today’s capital raising environment demands.
A Better Approach: One-Sided NDAs with Instant Access
InvestNext’s NDA feature creates that balance by integrating one-sided NDAs directly into the investor experience. This approach prioritizes both protection and speed:
- Legal Enforceability: Unlike simple “I agree” buttons, InvestNext uses DocuSign to create binding, enforceable agreements
- Instant Access: Once signed, investors gain immediate access without manual approval delays
- Automatic Record-Keeping: Executed NDAs are stored with investor profiles for easy reference
The implementation is straightforward for investors:
- Investors see a “Request Access” button when viewing a protected deal room
- Upon clicking, they immediately view the NDA document
- After DocuSign execution, access is granted automatically
- The investor can proceed into the deal room without delay
This approach removes the traditional trade-off between security and deal momentum.
Key Benefits for Sponsors
InvestNext’s NDA implementation delivers immediate benefits:
- Compliance Confidence: Create a documented audit trail of information access
- Reduced Administrative Burden: Eliminate manual tracking and permission management
- Enhanced Investor Experience: Maintain a professional, streamlined process
- Faster Deal Momentum: Remove unnecessary friction while maintaining protection
For sponsors who value both security and efficiency, this approach transforms how they protect and share deal information.
Competitive Advantage Through Information Protection
Effective NDAs do more than protect documents—they create accountability throughout the investor relationship and, when properly implemented, clear ground rules about how information can be used and shared.
Maintaining control over proprietary deal flow and investment strategies for sponsors operating in competitive markets provides a measurable advantage. Feedback from sponsors confirms that NDA functionality has become essential for platform selection, with one noting: “We won’t sign with any platform that doesn’t have this.”
As the real estate investment industry continues to digitize, the gap between platforms with robust information protection and those without will become increasingly apparent. Sponsors who prioritize this aspect of their tech stack now are building a foundation for success in tomorrow’s increasingly digital capital-raising landscape.
Key Takeaways
- Compliance Protection: NDAs help ensure regulatory compliance by controlling information dissemination
- Investor Confidence: Professional information protection signals institutional-grade operations
- Competitive Edge: Control over proprietary information maintains market advantage
- Administrative Efficiency: Automated NDA processes eliminate manual tracking and follow-up
- Deal Momentum: Remove unnecessary friction while maintaining essential protection
Next Steps
InvestNext’s NDA feature is now available for all clients.
Connect with our team to discover how this feature can safeguard your most valuable assets – your deal information and your investors’ trust – while upholding the seamless investor experience your business requires.
