VENTURE CAPITAL FIRM TO STOP USING NON-COMPETE AGREEMENTS

Boston venture firm Spark Capital has announced that it is no longer requiring the start-up companies it invests in to require employees to sign non-compete agreements. The firm has stopped requiring non-compete clauses because they are “a significant barrier to start-ups and innovation.” BRAVO!

Non-compete agreements deter innovation and entrepreneurial growth. The ability for workers to hop from job to job has contributed to technology sharing and innovation, and fuels growth.

Non-compete clauses are unenforceable in California’s Silicon Valley. In fact, when the start-up social networking site Facebook left Cambridge for Palo Alto, they cited New England’s non-compete clauses as a major reason for the relocation.

Take heed Virginia!

Dan Frith
Dan Frith

Dan Frith has over 25 years of experience representing individuals and families in cases of medical malpractice throughout Virginia. He has been named "Best Medical Malpractice Attorney" by Roanoker Magazine and is a member of the Million Dollar Advocates Forum. To speak with Dan, contact him by email at dfrith@frithlawfirm.com.