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Start-Up Companies and Venture Capital

Angelica Textile Services Inc. v. Park

If one leaves one's job to start a new venture may raise legal risks for the entrepreneur, especially when the new venture will be a competitor or in an adjacent industry where the previous employer may reasonably have competitive interests. Leaving raises potential issues under a variety of legal theories, including common law agency, trade secrets, and unfair trade practices. In Angelica, and the cases that follow, we consider the legal risks of leaving an employer to start a competitive business.