The Use of Non-Competition Agreements
2.17.2015As a company on the East Coast, why require all employees to sign non-competition agreements, given that the practice places our company at a competitive disadvantage to companies located on the West Coast that do not use non-competes?
You've taken the plunge and decided to launch your and incorporate a new company. As founding team, you've settled on how to divide the company's initial equity among the founder group. All that's left is to call your lawyers and tell them how many shares to issue, right? Not so fast. In a company with more than one founder, issuing founder without subjecting those shares to vesting is never a good idea.
Strategic investors can be an important part of the funding and growth strategy for many companies. Strategic investors are typically companies in the same industry or an industry related to your venture that strategic value beyond the dollars they invest. So while they are making a financial investment, they are also hoping to get something else—hopefully something that is beneficial to both companies—out of the relationship.
