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

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.