Founders and senior members of startups who are exiting the company, for any reasons, are generally bound by a Non-Compete Clause(NCC). Since they carry a lot of IP and have access to many important and strategic information, it becomes important for the company to exercise precaution and take all steps to make sure that such exits do not impact the business in any way. Many a times when the startup raises money, the investors want to make sure that the founders and key members are bound by a NCC so that their investments are protected in case of any exits.
In this episode of eLagaan Whiteboard Friday, the eLagaan team talks about the NCC in detail and what it means for various stakeholders like founders, key members, investors etc. This video also talk about some important aspects that should be considered before drafting a suitable NCC and making it binding on various stake holders.
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