I work in the Midwest, and being worried about noncompetes and ownership of IP out of the office clauses has had a strong dampening effect on my motivation to work on anything software related on the side while I've been employed, for the most part. It's actually part of what started getting me into board game design in my off time, because there's no way my companies could have a valid claim against that.
For most companies with IP clauses, the company owns 100% of the IP (and your company). Additionally, VCs won't invest if there are problems with the IP.
