The Georgia Supreme Court recently decided a case that could have major implications for technology companies — Coleman v. Retina Consultants.

The Supreme Court held that the non-compete clause in a software agreement entered into with an employee (not an employment agreement) was unenforceable because the clause contained no time or territorial limitations.

The software agreement included the following clause:  “Coleman will not distribute, vend or license to any ophthalmologist or optometrist the Clinex software or any computer applications competitive with the Clinex-RE software without the written consent of TREC.”  Coleman was also an employee, but the restrictive covenant was included in a software agreement – not an employment agreement.

The Court invalidated the restrictive covenant in the software agreement by applying a strict scrutiny standard – the standard used to interpret the enforceability of restrictive covenants in employment agreements.  The standard requires the provision to be reasonable as to time, territory, and scope.   Read More…

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During VentureAtlanta09, I interviewed a venture investor, local software entrepreneur, and out of town e-commerce executive. Their insights are enlightening and highlight the value of VentureAtlanta in connecting tech entrepreneurs and investors.

The investor, Anil Khatod, is a managing partner of Argonaut Private Equity. You’ll enjoy his insights regarding the fund and the breadth of their investing criteria – and his interest in finding deals in Atlanta and the southeast.

Catherine Renaud is the founder and CEO of Software Creations, a software business focused on the spa and salon market. Ms. Renaud is a seasoned entrepreneur having been in business for many years and an early Read More…

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John C. Yates, Chair – Technology Group, Morris, Manning & Martin, LLP covers Venture Atlanta Day 2.

Congratulations Atlanta on an outstanding Venture Atlanta ‘09 conference!  In my years of attending venture conferences, this one was at the top of the list for several reasons:

• Venture capitalists from throughout the country attended (sure, we can always use more)
• Presenting companies were solid and in the zone of being fundable (as opposed to other conferences where “living dead” companies are added as filler to round out a program)
• The logistics were coordinated and scheduling was on time (the facility was more than adequate — not luxurious but comfortable)
• VCs expressed enthusiasm for several presenting companies and follow up meetings will be forthcoming.

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Venture Atlanta Day 1 by John Yates, Chair – Technology Group, Morris, Manning & Martin, LLP

The first day of Venture Atlanta was perfect – great turnout of VCs, angels and local entrepreneurs on a beautiful Atlanta day.

And, the venture investor dinner on the Metro Atlanta Chamber’s terrace overlooking downtown was the premium investor networking event of the year in the southeast.

The overall mood on Day 1 was cautiously optimistic – with an improved economy, VCs are more seriously looking to invest in southeastern tech companies. And, metro Atlanta remains a hub of the region’s entrepreneurial growth.

Discussions with venture capital attendees and presenting company executives tell the tale — entrepreneurs are realistic about the challenges in raising capital but remain optimistic they’ll find a suitable venture partner interested in their technology and market. Venture capitalists have selectively narrowed their scope of concentration and are interested in recurring revenue companies with a broad customer base and experienced management.

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Coming up this week on Tuesday, March 24, is Innoventure Southeast 2009 in Greenville, SC.  Fifteen companies will be presenting, and I’ll be on hand to check them out.  (Yes after last week’s post on #SXSW I know that many of you will be disappointed that daughter Audrey is not providing the coverage, but she’s back in class in Austin this week.)

Advance registration is not required; $400 is the credential you’ll need for admission at the door.  This event has gotten excellent reviews from past years as a source of Read More…

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My goodness the golf was nice the last couple of days in Atlanta! It was a cleansing of the mind to get away from any discussion of the moribund economy.  (I have to admit, however, that one of my playing partners listened into a board call for about 3 holes — ignoring the no-cell-phone rule and actually getting a birdie on #15 while thusly distracted.  The good news was that the subject company actually could make payroll at the end of March. These days we are all grateful for small favors.)

Thank all of you who are reading TechDrawl and making comments either in person or on the site.  We especially thank our sponsors who have stepped up to make this possible.  You’ll see below a video interview with Julie Carlock of Integrity Business Group, the first of many to come to introduce you to sponsors just as we introduce you to companies.

In two months we have had more than 300 deals come to our attention, some from Startup Riot, Capital Lounge, TAG Top 40, various angel groups and venture seances, and others just over the transom.  Whatever the world’s circumstances and capital issues of the moment, one can make a good case that there is tremendous entrepreneurial energy in the Atlanta community.  We have already written about companies in Texas, Alabama, Florida and Tennessee and are staying on mission to cover the South, but, to be honest, we must cope with a sudden explosion of deals.  As of this writing, we believe we have on our list at least 130 bona fide companies that have potential to attract 3rd party investment and to get somewhere; we’ve got our work cut out for us Read More…

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The entire world knows about November’s terrorist attacks in Mumbai that killed more than 170 people and wounded hundreds more. Many of them died at the Taj Majal Hotel, which has became a symbol of the tragic attacks. As part of our Tech Trek to India, Jason D’Cruz and I visited a memorial to those who died in the siege of “The Taj,”, and reflect on India’s desire to move forward. We also noted the security at the Grand Hyatt, where we stayed in Mumbai.

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Americans have pretty clear ideas about what they think India is like. But what do Indians think about the U.S., and specifically Atlanta? That’s one topic of today’s Tech Trek blog. As part of our effort to educate people about what we learned overseas, just click Play above. Read More…

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My law partner Jason D’Cruz and I are back in the office from our business trip to India and reflecting on the things we learned and that we want to share with the Atlanta tech community. There’s a big difference between venture capital in India and in the U.S. We also analyze the aspects of India that present the most opportunity. We’re going to let the video do the talking, so click Play.

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