VC & PE Glossary

What Is Non-Solicit?

Updated

Definition

A non-solicit agreement restricts a departing party from recruiting or soliciting business from a former employer's employees, customers, or vendors for a defined period.

Useful for: Founders, Investors

Non-solicit provisions limit ex-employees, founders, or sellers from soliciting a former organization’s employees, customers, or suppliers after the relationship ends.

How it works

Employment agreements commonly include twelve- to twenty-four-month non-solicits of employees and sometimes customers the individual worked with directly. M&A deals embed seller non-solicits of acquired company clients and staff. Language distinguishes active solicitation (cold outreach) from general advertising or inbound responses.

Enforceability is generally stronger than broad non-competes in many jurisdictions, but courts still require reasonable duration and scope. Non-solicits appear alongside confidentiality and invention assignment in offer letters and founder agreements.

Venture investors rarely require founder non-solicits among co-founders unless resolving a departure; shareholder agreements may add standstill or transfer restrictions instead. In acquisitions, buyer non-solicits of acquired customers are negotiated separately from employee non-solicits.

Why it matters

  • Founders: Use non-solicits to protect relationships built on company resources. Overreach — banning all contact with any customer globally — invites challenge and talent distrust.
  • Investors: Diligence on executive hires includes reviewing prior employer agreements. Violations can delay start dates or trigger lawsuits that drain cash and attention.

Common mistake

Confusing non-solicit with non-compete. You may legally join a competitor in some states while still barred from recruiting your old team’s engineers for a year.

See also non-compete, PIIA, offer letter terms, and acquisition restrictive covenants.

  • Non-Compete — A non-compete is a contractual restriction that limits a person or company from starting or joining a competing business for a specified time and geographic or market scope after a relationship ends.
  • PIIA — A PIIA (proprietary information and inventions assignment agreement) is a contract where employees assign company-related inventions and IP to the employer and agree to confidentiality obligations.

By Venture Capital Tracker

Last updated:

Editorial note: AI tools assisted with research, structure, or drafting. Venture Capital Tracker retains human editorial responsibility for factual accuracy, relevance, and source quality before publication.

Common questions

Short answers for founders, LPs, and operators

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