Entrepreneur in residence
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Commonly known as "EIR"s, a person who holds the title of 'Entrepreneur in Residence' or 'Executive in Residence' is a position typically held by successful entrepreneurs in venture capital firms, private equity firms, startup accelerators, law firms or business schools. The entrepreneur in residence or executive in residence typically leads a small, early-stage, emerging company deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both). The institutional fund provides the Entrepreneur in residence or executive in residence with working capital to nurture expansion, new-product development, or restructuring of the company’s operations, management, or ownership.
Venture capital, private equity, startup accelerators
In a venture capital fund, a private equity fund or a startup accelerator; the entrepreneur in residence works with the general partners and assists the firm's portfolio companies by leveraging their industry knowledge, expertise and network. In addition he/she is expected to evaluate new investments opportunities for the venture capital or private equity fund, especially if it is in their domain of expertise. The venture capital firm usually benefits by getting significant access to the new company started by the E.I.R. This is due to the fact that the general partners are typically the first investor in E.I.R.'s new company, giving them a chance to invest before angel investors and other venture capital firms.
Inside a law firm, the entrepreneur in residence provides professional services to the law firm’s clients. For a law firm firm having an entrepreneur in residence who can interact with other entrepreneurs and advise them, it is a way of gaining clients by helping them with venture decisions and networks. This is a very beneficial relationship for the E.I.R., who will develop relationships with several other entrepreneurs that could be potential investors or early employees in future ventures.
In business schools, an E.I.R. provides guidance to MBA students who are starting their own companies. The type of nurturing an E.I.R. can provide to a business school environment helps students and professors by sharing their industry experience and expertise. The E.I.R. helps students and professors develop new ideas and turn them into sustainable ventures.
EIR's, or Entrepreneurs in Residence were once found mostly at venture capital firms, but the role has expanded and you can now find them at a variety of companies - including tech companies. But what exactly does one do? Great article in CIO Magazine entitled "What is an Entrepreneur in Residence and Why You Need One" by Fredric Paul, a Silicon Valley-based technology journalist.
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- So What The Heck Is An 'Entrepreneur In Residence' Anyway?. [online] Business Insider. Available at: http://www.businessinsider.com/eir-faq-what-you-need-to-know-2012-3[Accessed 24 Oct. 2014].
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- Forbes.com, (2014). Welcome to Forbes. [online] Available at: https://www.forbes.com/fdc/welcome_mjx.shtml [Accessed 24 Oct. 2014].
- Festanstellung - Entrepreneur in Residence (m/w) - München, Berlin - www.etventure.com, (2014). Festanstellung - Entrepreneur in Residence (m/w) - München, Berlin. [online] Available at: http://www.etventure.com/de/festanstellung-entrepreneur-in-residence-muenchen-berlin.html [Accessed 25 Oct. 2014].