Basically we do some kind of consulting for small and medium sized business in Latin-America that has been enough to achieve ramen profitability, rent office, buy equipment and been selected to participate in the program.

We have two months here in Santiago and a month ago we received an email from Startup Chile STAFF saying that some “small investors” where wanting to talk with us.

We did the 3 pitch, I think we did it great because they asked for a second meeting, we talked about details there and at the end of the meeting we scheduled a 3rd one for the next week.

This meeting was just yesterday and the investor said “YES, let’s start working”. We are a team of two guys, I do the “technical stuff” and my partner does the billing and taxes part... That’s great and is working but the problem is that I don’t know how to code and we want to build an application for our startup.

The investor is the CEO of a web development company in Santiago and he wants to partner with us. The deal is to have3- 5% of our company in exchange of building the application and some cash for us.

That’s a good deal.

I have thinking about this app for a while and by this point I have a lot of sketches about how the app should look and work. I just need someone to develop and the investor’s team can do this without a doubt.

He wants this sketches but I suppose is not a very good idea to show them without any signed contracts. He just gave us a NDA to sign but I don’t know what else we must do to avoid a story like this for us:

http://venturebeat.com/2012/02/27/a-classic-startup-horror-story-the-ma-bait-and-switch/2/

We have our next meeting on Thursday and I’m really in a hurry for advice about how to avoid “being screwed” by this guys… You know, I don’t want them to see the sketches, build the app and said “thanks for your cooperation guys, see you later”.

Any advice about what steps we should follow to avoid a “Horror story” Situation?.