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Ask HN: Is it common for VCs to ask founders to sign a non-compete?

5 points by Datenstrom ↗ HN
Since most VC money and tech startups are in CA where non-competes are not enforceable it seems like it would be mostly pointless but I am hearing mixed opinions. Also, I know everything here will be "IANAL" I am just curious what other peoples experiences with this have been.

4 comments

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softwaredoug
Well the downside to signing-if the startup isn't doing hot, or you realize a startup isn’t for you, your backup plan is a leadership position in your field of expertise. Sounds very constraining.

Also if you truly want to leave, it doesn’t seem like a great idea to keep you in a key position. Why force you to have this as an only option? You might even be incentivized to sabotage the startup!

Seems your equity and the belief in the mission are really what would keep you there.

Trias11
If VC is not emiting good vibes - walk away.

Red flags could materialize in many ways. It's your baby, be vigilant.

muzani
Yup. Every business decision I've ever regretted started with ignoring a bad feeling about someone or justifying it with data.
high_byte
means the VC don't see you on the long term, whether they don't think you would stay or they might not want you to stay.