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Food for thought, they signed a Non-Compete and NDA agreement. They can't directly compete with you and if they do you better sue them like your life depends on it. Also, as it was said by another poster, you are agreeing that you did something wrong, not legally I presume, but it certainly makes you look bad.

In any case. Get A Laywer

How do you know they signed an NDA and non-compete, or are you just speculating? If so, not sure speculation is helpful here.

As it happens, non-competes tend not to be enforceable in most states, although granted it doesn't say what jurisdiction (or even country) this is occurring in.

Because the original poster said so?

We are also asking that the existing non-compete, non-disparagement, and NDA they signed still stand

My bad, didn't see OP said there was a non-compete, etc.

However, my point still stands that non-competes are rarely enforceable.

Perhaps they are not, but when you have those three agreements signed it becomes hell to try to compete. You shouldn't compete (even if it's not enforceable), you can't talk in any way that reflect wrongly on the other business, and off course you can't share any intellectual property obtained while in the company. I think they are pretty safe regarding competition from the snafu investor.

Investors fund rival businesses all the time.

Most investors won't sign NDAs, let alone non-competes. It's further example of how weird this situation is - on both sides of the table.

You shouldn't compete (even if it's not enforceable)

I would never sign a non-compete because it's not enforcable (I'm in California). If I really wanted to work on a project and the founders said I had to sign the non-compete with no other option I would tell them in writing that I know it is not enforceable and have no interest in adhering to it, and sign it anyway. If the opportunity later came up to compete, I would. Nothing illegal about it.

People go work at rival companies all the time - right now there are loads of good folks leaving Zynga to work for rival companies in exactly the same space - and vice-versa.

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