Creating a startup in the digital era has never been easier thanks to AI, new tools, resources, and various funding options. But as more companies enter the market, more are exiting, often learning hard lessons along the way.
This creates a need for a new role in the startup ecosystem where ex-founders can bring first-hand experience to help founders avoid common pitfalls like reinventing the wheel or diverting most energy into something other than the product.
Here, ex-founders can serve as valuable mentors or advisors, offering guidance and insights based on their own successes and failures. And since they are seasoned entrepreneurs, they are also capable of starting new companies.
Founder residency can provide a platform for such entrepreneurs to continue their entrepreneurial journey by connecting with other founders, sharing their expertise, and even potentially finding new co-founders or investment opportunities.
What is a Founder in Residence?
A founder-in-residence (FIR) is a seasoned entrepreneur, usually an ex-founder, who joins with the intention of starting a new company with a host organization like an incubator, accelerator, or venture capital firm.
FIR has similarities with the more-known role of Entrepreneur in Residence (EIR), but is more focused on co-founding startups compared to the broad number of roles EIR comprises.
Although they are mainly sought in order to have a higher chance of creating successful companies, it's not unusual for organizations to seek them to provide mentorship and strategic guidance to their entrepreneurs, lead special projects, or utilize their entrepreneurial connections.
But in essence, founder-in-residence programs are mostly based on co-founding companies together with the host organization. Such programs often provide access to mentorship, funding opportunities, and a collaborative environment that fosters innovation and growth.
Keen to Innovate? Find the perfect Founder in Residence role for you
Some examples of founder in residence programs include Antler which hosts the program in various locations across the globe; Atomic VC and Roux Institute. Similarly, most accelerators and venture capital firms have some kind of residency program that invites promising entrepreneurs to co-found companies together.
If entrepreneurs have a validated idea of their own, they can use a founder residency program to co-found their dream startup using the host organization's resources and support. But if they don't, they can still work on one of the studio's validated ideas that they are excited and knowledgeable about.
The tenure of the FIR is usually project-based and concludes either at the end of a predefined time period, which lasts between 3-12 months, or when the startup reaches an agreed-upon developmental milestone, like:
- Launching a Minimum Viable Product (MVP).
- Securing its first round of funding.
- Launch of the company.
Moreover, these founder residency programs offer entrepreneurs the chance to network with industry experts, potential investors, and like-minded individuals who can provide valuable insights and connections.
By being part of a supportive community, entrepreneurs can overcome challenges more easily and gain inspiration from their peers. Overall, these programs serve as a launchpad for aspiring entrepreneurs to turn their ideas into successful ventures with the guidance and resources they need.
FIR has similarities with the more-known role of Entrepreneur in Residence (EIR), but is more focused on founding or mentoring startups compared to the broad number of roles EIR encompasses.
But given the similarities between the EIR and FIR roles, host organizations often hire EIRs to fulfill the FIR role. FIRs have been foreshadowed due to this, but they are now beginning to gain traction in the startup ecosystem.
What does a Founder in Residence do?
FIRs are typically involved in starting new companies, mentoring new founders, or utilizing their entrepreneurial connections. Their exact role depends on the unique requirements each host organization may have. Their main roles are described below:
Launching a startup
One of the key roles of a FIR is to help launch a startup, often from the ground up. Since FIRs have substantial experience as ex-founders, they are more likely to launch a successful startup. They bring their experience and knowledge to the table, assisting in navigating the challenges of a new business and increasing the likelihood of success.
At the start of the role, terms and contracts are agreed upon for salary, equity, and tenure.
Usually, FiR's tenure is project-based and concludes either at the end of a predefined time period or when the startup reaches an agreed-upon developmental milestone, like:
- Launching a Minimum Viable Product (MVP).
- Securing its first round of funding.
- Launch of the company.
FIRs are engaged in every startup stage, from ideation to eventual launch. To start off, they may pitch their original idea to the host organization or work on an idea that has gone through a rigorous validation process.
FIRs are also responsible for team building, which may also include interviewing fellow senior entrepreneurs for the co-founder role who could lead when they eventually exit. For the rest of the positions, they may leverage their extensive network of entrepreneurial connections to recruit top talent for their startup team.
On the launch of their startup, FIRs may either transition to the CEO of the newly launched startup and handle operations for a few months or hand control to their co-founder. It's also possible that the host organization offers them another role, but it's often hard to retain an ex-founder for a long time.
Other than launching a startup from scratch, FIRs may also be employed to manage an existing early-stage startup to help steer through its crucial development stages. This includes refining business strategies, aiding in product development, managing operations, and leveraging their network for growth opportunities.
Mentorship
Host organizations may employ FIRs to play a crucial role in mentorship within their early-stage startups, bringing a combination of experience, knowledge, and leadership to the table.
The primary aspects of mentorship include guiding less experienced entrepreneurs through the nuances of startup development. This includes offering insights on market analysis, product positioning, and business strategy.
FiRs can help startups navigate common pitfalls and challenges, such as resource allocation, scaling operations, and managing investor relationships. Moreover, FiRs often serve as a sounding board for ideas and strategies. Their objective perspective can be invaluable in validating business concepts and providing constructive feedback.
This mentorship goes beyond mere advice; it often involves hands-on assistance in refining business plans, enhancing product design, and developing effective go-to-market strategies.
It combines practical guidance with strategic insights, helping startups not only to survive the challenging initial phases but also to thrive and achieve sustainable growth.
Market insights, advice, and their entrepreneurial network
FIRs often bring valuable industry expertise and insights, allowing them to identify market gaps and develop innovative solutions that can give their startup a competitive edge.
They are also able to provide invaluable expertise in areas such as fundraising, product development, and market strategy. Additionally, FIRs often have extensive networks within the industry, which can help startups connect with potential investors, partners, and customers.
FiRs can also leverage their extensive network to provide startups with access to potential investors, industry experts, and strategic partners. This networking aspect of mentorship is crucial for startups looking to expand their reach and resources.
One example is Pilot’s FIR, Gillian O’Brien, who leverages her position in her entrepreneurial network to manage Pilot's founder and accelerator community, as well as help them focus on the product rather than bookkeeping, which they can outsource to Pilot.
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Since EIRs and FIRs share a lot of similarities, they are differentiated briefly below:
Differences between an Entrepreneur in Residence and a Founder in Residence
The role of an Entrepreneur in Residence (EIR) is typically focused on providing strategic guidance and mentorship to startups, while a Founder in Residence (FIR) is usually more involved in the startup launch and its day-to-day operations.
But these responsibilities, if reversed, can also hold true since there's a big overlap in the qualifications of FIRs and EIRs. Both roles employ seasoned entrepreneurs or founders who have successfully exited their startups; that said, EIRs are usually subject-matter experts in their respective fields.
In the end, EIRs can also help launch startups, while FIRs can provide strategic guidance too, so it mostly depends on the job posting and its choice of word. These days, EIR is a more popular and understood role, so it's common to see employers trying to hire EIRs to start companies rather than FIRs.
This collaborative environment allows ex-founders to stay immersed in the startup culture and continue to contribute to the growth of the ecosystem, so it's a win-win for everyone!
Where Can I Find Founder in Residence Jobs?
You may find various host organizations offering founder residency jobs on Indeed, LinkedIn, and other major job portals. Alternatively, there's a specialized job portal for founder-in-residence and entrepreneur-in-residence jobs, so you can skip the noise and start applying to co-found your dream startup now!