Enterprise contracts outvalue LOIs by resolving critical security details upfront
Cherif Habib · How to Create a New Market | Cherif Habib, Founder of Dialogue (IPO: TSX) · PMF Show · Nov 15, 2022 · at 26:40
Cherif Habib is the co-founder and CEO of virtual healthcare platform Dialogue. He explains the difference in validation between signed enterprise contracts and non-binding letters of intent.
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“Contracts are worth much more than LOIs even if they have an out and even if they're not binding, but at least The reason a contract is worth so much more is that you've negotiated all of the other things that you need to discuss in the future. Whereas an LOI is like, yeah, we're going to do this, but it's like, we haven't yet negotiated a bunch of other things that are really important. And sometimes the devil's in the details and like, yes, we agree on the price and the implementation data or whatever, but we don't agree on like security and data retention and all these other things.”
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