On: Investment increases your risk

[solve]

You're probably right about the IP and databases not being completely trapped, in practice.

What about non-competes though? Could I really start a directly-competing company immediately afterwards? After all, not all startups fail just due to having completely worthless products, there could be many other reasons.

[tptacek → solve]

What non-compete? Are those common on VC deals? There weren't any when I took funding, but that was awhile ago.

[mrkurt → tptacek]

Non-competes would likely come either when you left the company in exchange for some unvested options, or after an acquisition.

[argonaut → solve]

Non-competes are largely unenforceable in California.

[tptacek → argonaut]

Employment noncompetes are unenforceable. Other kinds are. A noncompete you accept in exchange for an investment is likely to be enforceable.