What Is An Entrepreneur-In-Residence? – Forbes

entrepreneur_in_residenceI’ve held the title of entrepreneur-in-residence (EIR) at four different organizations, so I get asked this question frequently. There’s no unambiguous answer because the job has to fit the priorities of the institution. Still, I can shed some light. [Disclosure: I have an ownership position in the companies mentioned in this article.] Each time I’ve been EIR, it’s been a newly created position. I’ve never had a predecessor, and in each instance I wrote my own job description. Despite the name of the position being the same, the duties, responsibilities and compensation were different. Traditionally, an EIR is a position at a venture capital firm. Usually the EIR is an accomplished executive whom the firm is willing to back financially. Often, an EIR is between stints running a company or is someone who just exited from one of the portfolio companies of the firm. An EIR typically gets office space, some administrative support, a business card and maybe even a stipend. It is not meant to be a high paying job nor a permanent position. The goal is for the EIR to create the next company that the VC firm will fund. Typically VC firms evaluate deals that come their way and then decide if the management team is strong enough to justify an investment. With an EIR it’s inverted—they already like the management. They just need to find the right investment vehicle. An EIR may get asked to help out on due diligence and/or provide operational assistance to existing portfolio companies. The goal, however, remains:  to develop a fundable concept that the VC firm can seed and which the EIR can run (or at least be co-founder). There are many variations on this theme, such as investing in an existing company, doing a roll-up or buying a distressed company. Another way in which an EIR might help a VC firm is if they are a fundable executive but also have deep domain expertise in an area of thematic interest to the firm. For example, a VC firm might say to themselves, “We believe that distributed energy generation is going to be a megatrend, and we really need to understand the opportunity in the space and develop our investment strategy.” They might hire an EIR with the right skills to research the market, develop an investment thesis and then either find a deal or write a business plan for a new company. The best VC firms see these trends emerging long before most people—and are exiting their investments just as the masses are rushing in.

Source: What Is An Entrepreneur-In-Residence? – Forbes

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About Stephen G. Barr, Group Publisher

Author, Syndicated Columnist, Editor In-Chief and Group Publisher at SGB Media Group, a social media marketing firm specializing in digital media content production, publishing, affiliate marketing, public relations and advertising. Over 25 years experience in retailing, advertising, website & online forum development, niche social networking, affiliate marketing, search optimization, branding and identity, site location, non-profit fund raising. Event planning, promotion, production and MC/Host at public events. Author, Editor & Publisher of 35 syndicated, digital publications utilizing multiple digital distribution channels in conjunction with launching and administrating national advertising campaigns for major Fortune 500 advertisers in partnership with Google, Ning, Facebook, Myspace, Yahoo, DoubleClick, LinkShare, PepperJam and other industry leading third party affiliate networks. Product development team member from conception to launch on many websites, tangible goods and organizational structure for start ups. Specialties: Public relations, retailing, advertising, website & online forum development, niche social networking, blogging, email campaigns, affiliate/performance marketing, search optimization, branding and identity, site location, event production & promotion, non-profit fund raising and tasteful, responsible adult content publishing. An internationally recognized and read social media columnist & pundit on The Examiner, Associate Content, Vator.tv, X-Biz.net and Technorati and his own affiliated sites.
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