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!