For individuals who have often been through the startup journey, are knowledgeable in their field, and need time to plan their next venture, there’s a perfect role out there called Entrepreneur-in-Residence!
EIRs play a pivotal role in driving innovation, overcoming challenges, and facilitating success in the entrepreneurial journey of their host organization while gaining market insight, self-growth, and networking opportunities.
Similarly, organizations that need strategic guidance, mentorship for their entrepreneurs, or a subject-matter expert, can look into hosting an Entrepreneur in Residence to improve their startup ecosystem.
What is an Entrepreneur in Residence?
An Entrepreneur in Residence (EIR) is a seasoned entrepreneur who transitions into a temporary role within a venture capital firm, accelerator, or academic institution after a successful exit from a startup.
The EIRs offers their expertise to the hosting entity, aiding in investment decisions, mentoring coming entrepreneurs, and fostering an innovation-centric environment. Concurrently, they enjoy the liberty to nurture their next big idea, leveraging the resources and network of the host organization.
This symbiotic relationship enriches the entrepreneurial ecosystem by driving innovation and creating a ripple effect of growth and success. At the end of their term, the host organization may offer another role or invest in their future endeavors.
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What does an Entrepreneur in Residence do?
The role of an Entrepreneur in Residence is multi-faceted and varies based on the host organization and its requirements. Usually, EIRs would be doing some of the following duties in a certain capacity while also planning their next ventures:
Startup Advising and Mentorship
EIRs often serve as advisors or mentors to startups within a venture capital firm's portfolio, helping them navigate challenges, refine their strategies, and grow their businesses.
They use their expertise and experience to guide startups through the early stages of development, providing valuable insights into areas like product development, marketing, and fundraising.
Scouting and Vetting Investment Opportunities
EIRs can help venture capital firms scout and vet potential investment opportunities. Their entrepreneurial experience also helps them identify promising startups that may be overlooked.
Networking and Connection Building
They can leverage their networks to connect firms with potential startup investments or other strategic partnerships. They introduce other entrepreneurs and potential new deals to venture capital firms, expanding the firm's network and investment opportunities.
Strategic Guidance and Operational Support
EIRs often provide strategic guidance and operational support to both startups and venture capital firms, helping in high-level strategy formation and execution. At times, they may even take on interim executive roles in startups, providing leadership and direction during critical phases of the company's growth and mentoring the early founders.
Leading Special Projects
Some EIRs are brought on board to lead special projects within the venture capital firm or one of the firm's portfolio companies. Usually, such EIRs are subject matter experts who bring the required expertise to help succeed in the said projects.
Creating New Companies
Rather than investing in existing companies, some VCs prefer employing EIRs to create new companies for them. EIRs in this case lead the companies independently but can also tap into the firm’s strategic and financial resources.
EIR navigates the early challenges and creates a team to which they can transfer operations at the launch of the company. Afterward, the firm may employ them in another role or have them start another company.
It is also possible for EIRs to create their own companies while being hosted as an EIR. Although usually not part of an agreement, EIRs allow their host organization to be an early investor due to their existing relationship. This greatly benefits VCs as they can invest early in a company being led by a seasoned entrepreneur.
Educational and Advisory Roles in Academia
Beyond venture capital firms, EIRs are also finding roles in educational institutions where they help students and faculty turn ideas and breakthroughs into businesses. They act as a bridge and help connect investors and other edtech executives with researchers.
The EIRs lead various seminars, workshops, and conferences to share real-world experiences with budding entrepreneurs and create development and engagement opportunities with relevant leaders.
For instance, Stanford Education hosts seasoned entrepreneur, Claudio Sassaski as an EIR. Claudio co-founded Geekie and over 12 million students make use of his company’s real-time data-based learning systems in Brazil.
Similarly, all top major academic institutions like Oxford, Harvard, Cambridge, and MIT host their own Entrepreneur-in-Residence programs for seasoned entrepreneurs to promote entrepreneurship among faculty and students.
Corporate Entrepreneurship
In the corporate world, EIRs help corporations identify, build, and lead new startups or innovation initiatives by employing entrepreneurial processes and skills. Corporate EIRs also help organizations broaden their strategic horizons, identify new market opportunities, and innovate more effectively.
But EIRs in the corporate sphere often have to balance between serving the corporation and thinking entrepreneurially to advance startup/innovation agendas.
Ingrid Vanderveldt fits the bill perfectly and is famously known as the first EIR for Dell, where she oversaw global entrepreneurial initiatives worth $250M and established the $125M Dell Innovators Credit Fund, Dell Founders Club, and the Dell Center for Entrepreneurs during her 3-year term.
In the end, whether it’s venture capital firms, academia, or the corporate world, each can make use of this role to continue innovating and facilitating the exchange of expertise within their realms.
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Qualifications of an Entrepreneur in Residence
EIR used to be an invite-only role where firms would approach entrepreneurs with successful startup exits, so you couldn’t pitch yourself unless approached. However, the role has expanded a lot over the years and is now frequently seen in job listings on LinkedIn, Indeed, and InResidence, a jobs board specifically for EIRs.
Typical qualifications include:
- Prior startup founder or experience working at an early-stage company.
- Substantial experience in your field.
- Successful entrepreneurial track record.
While the following qualities are preferred:
- Entrepreneurial mindset with a passion for innovation.
- Self-starter who will thrive in an ambiguous startup environment.
- Excellent team-building and problem-solving skills.
What’s in it for the Entrepreneur in Residence?
EIRs have an important role in the startup ecosystem, but they get plenty of benefits themselves which makes it a great symbiotic relationship. Aside from drawing a salary and additional benefits as per the negotiated package, EIRs can continue growing while they plan their next ventures:
Market Insight
Engaging with market dynamics while being an EIR provides a deeper understanding of market trends, consumer preferences, and competitive landscapes, which is pivotal for any entrepreneurial venture. The host organization can also serve as a testing ground where EIRs can validate their ideas in a real-world setting, garnering invaluable feedback and insights.
Networking Opportunities
The networking possibilities that come with the EIR job are abundant, as you’ll be meeting experts in the field, possible investors, and other like-minded entrepreneurs. These connections can be instrumental in the future course of their career.
Visibility and Recognition
Being associated with reputable organizations not only elevates the visibility of the entrepreneur but also lends a badge of credibility, which can be quite beneficial in their entrepreneurial journey.
Organization’s Resources
The host organizations, which are often well-established entities, provide several resources ideal for entrepreneurs to help foster their ideas, from physical infrastructure to a network of industry specialists.
Freedom and Flexibility
Unlike rigid corporate roles, the EIR position offers a degree of freedom and flexibility, enabling entrepreneurs to explore and experiment, which is the essence of entrepreneurship. The flexibility also allows them time to work and plan their next ventures.
In the end, EIR is more than just a transient phase; it’s a great position for growth, learning, and networking. The diverse challenges encountered during the EIR tenure allow entrepreneurs to hone existing skills and acquire new ones; the learning never stops!
Conclusion
The concept of an Entrepreneur in Residence is a boon to the entrepreneurial ecosystem. Providing a symbiotic relationship, allows organizations to leverage the expertise of seasoned entrepreneurs while offering them a platform to explore, innovate, and contribute towards the growth of the organization and the larger entrepreneurial community.
This unique position not only nurtures the entrepreneurial spirit but also cultivates a culture of continuous learning and improvement, making it an indispensable asset for organizations striving for innovation and growth in today’s competitive market landscape.