What Is an Entrepreneur in Residence (EIR)? Meaning, Role & How to Become One

An entrepreneur in residence (EIR) role is a magnet for entrepreneurial spirits and a valuable asset for organizations. At its core, it’s a seasoned entrepreneur who’s been in the trenches and takes up a temporary project-based role in another organization (a venture capital firm, a giant corporation, or even a university). But they're not quite employees in the traditional sense, nor are they just consultants flitting in and out. 

EIR is a fascinating path, a chance to explore new ideas, mentor others, and maybe, cook up the next big thing without immediately having to sell a kidney to fund it. Intrigued?

Entrepreneur in Residence Meaning

Alright, entrepreneur in residence sounds fancy, but the concept isn't exactly brand new. It’s been fermenting for a while, particularly in the high-octane environment of venture capital. When the dot-com boom was booming in the late 1990s and early 2000s, VC firms realized, "Hey, these people who've actually built companies might have some insights!"

Initially, the EIR meaning business-wise was linked to successful founders who had recently exited their startups. They'd land at a VC firm, take a breather, share their wisdom, and start sniffing around for their next big idea, with the VC firm's backing. It was a symbiotic relationship:

• EIR got a playground and resources
• VC got early money on a potentially lucrative new venture incubated in-house

Some say the role became more formalized as VCs sought to differentiate themselves and add more value beyond cash to their portfolio companies. For instance, Battery Ventures had EIRs way back, using them as a way to explore new investment theses.

But then it gets delightfully messy: the interpretation of an entrepreneur in residence meaning isn't a universal affair. It morphs and shapeshifts depending on where the EIR has plonked their laptop.

• In venture capital, an EIR might be a founder on a break, decompressing from their last venture while ideating the next, or an experienced operator helping the VC firm vet deals and mentor portfolio CEOs.
• Corporations started noticing the startup world's agility and thought, "We want some of that!" So, they bring in EIRs to shake things up, lead internal innovation projects, champion "intrapreneurship," or scout for external startups to acquire or partner with. For example, programs like Google's Area 120 incubator (formerly Google for Entrepreneurs) often had EIR-like figures developing new products.
• Universities and their associated incubators or accelerators hire EIRs to guide student entrepreneurs, provide real-world insights, connect them with networks, and help them avoid the classic startup facepalms. Many universities, like MIT or Stanford, have robust EIR programs.
• In standalone accelerators and incubators, EIRs are super mentors, similar to the academic setting, but often with a more direct path to potential funding or market launch.

So, you see, the EIR full form might be consistent, but the job description can be as unique as the individual filling the role. It’s less about a rigidly defined set of tasks and more about a spirit, an approach, and a specific high-impact mission in a host organization.

What Does an Entrepreneur in Residence Do?

So, we've established that an entrepreneur in residence is generally expected to do things except share ideas and some wisdom. Again, what exactly they do depends on the setting.

Within Venture Capital Firms

Inside the hallowed halls of a VC firm, an EIR’s day-to-day (or month-to-month, as they often have a flexible rhythm) can have a ton of activities:

Sourcing Startups

If a VC has a nose for the next unicorn, EIRs take advantage of their extensive networks and deep industry knowledge to unearth promising startups that might have flown under the VC's radar. They’re out there, attending obscure industry events, having coffee meetings, basically being a talent researcher for investment opportunities.

Advising Portfolio Companies

The VC has a stable of companies they've already invested money in. Some are soaring, others not so much. An EIR, having navigated the treacherous waters of building a business, can parachute in to offer sage advice, act as a sounding board for struggling CEOs, help untangle strategic knots, or fill an interim leadership gap. 

For example, an EIR with scaling experience might help a Series A company figure out its go-to-market strategy for a new product line.

Building Ideas for Incubation

This is often the core expectation. The VC firm gives the EIR a desk, a salary (or stipend), and access to resources, and says, "Go forth and ideate!" The EIR then dives deep into market research, customer discovery, and prototyping, aiming to develop a new business concept from scratch. If the idea shows promise, the VC firm gets the first look at funding it, sometimes with the EIR as the founding CEO, like how Reid Hoffman was an EIR at Greylock Partners after LinkedIn.

Due Diligence

And when the VC is seriously considering an investment, an EIR with relevant domain expertise might kick the tires, scrutinize the tech, assess the team, and generally poke holes in the business plan to see if it holds water. They bring the crucial "been there, done that" perspective.

In Corporate Settings

When a corporate behemoth decides it needs a dose of entrepreneurial fairy dust, the EIR they bring in has a slightly different mission: begging innovation out of an environment that might be more accustomed to TPS reports than lean canvases.

Driving Innovation 

The EIR might identify new market opportunities for the corporation, explore disruptive technologies, or develop innovative products or services that align with the company’s strategic goals but lie outside its current operational comfort zone. They might run internal innovation challenges or pilot new ventures. 

For example, a retail giant might hire an EIR with eCommerce expertise to build out a new direct-to-consumer online brand. Adobe's Kickbox program, while not exclusively EIR-driven, embodies this spirit of empowering internal innovation in a corporation.

Launching Internal Ventures

Sometimes, a corporation wants to build a whole new startup under its own roof (or at least nearby). The EIR often takes the lead as the de facto founder of this internal venture, using the corporation's resources (funding, distribution channels, customer base) but ideally operating with startup-like agility. Many large banks have innovation labs where EIR-like figures test new fintech products.

Exploring and M&A

Similar to VCs, corporate EIRs might also look for external startups for potential acquisition or strategic partnerships that can bring in new technology, talent, or market access.

In Academia or Incubators

Here, the entrepreneur in residence leans into mentorship and ecosystem building. The vibe is less about immediate financial ROI for the institution and more about fostering the next generation of entrepreneurs.

Mentoring Students or Early-Stage Founders 

EIRs hold office hours, critique business plans, offer brutally honest (but constructive) feedback, share their war stories, and help aspiring entrepreneurs navigate the emotional rollercoaster of startup life. UC Berkeley (SkyDeck) or Imperial College London entrepreneurship centers feature EIRs who provide invaluable guidance.

Developing Programs and Curricula

They might design and deliver workshops, boot camps, or for-credit courses on entrepreneurship to bring practical and real-world experience into the academic setting.

Connecting to the Ecosystem

Entrepreneur in residence uses their connections to introduce founders to potential investors, partners, mentors, and talent. They are a bridge between the relatively sheltered environment of the university or incubator and the harsh realities of the business world.

Judging Competitions and Reviewing Applications

Their expertise is invaluable in sifting through pitches and applications for incubator programs or seed funding initiatives run by the institution.

Why Do Organizations Hire EIRs?

Hiring an entrepreneur in residence means bringing someone with a genuine entrepreneurial mindset into your company, which is quite different from hiring a typical consultant. For instance, Dell's first EIR, Ingrid Vanderveldt, clearly showed this value by spending much of her time engaging with entrepreneurs to understand their needs. The direct interaction then led to tangible programs like Dell's Office of the Entrepreneur in Residence with a $100 million Dell Innovators Credit Fund.

In the B2B sector, EIRs translate the entrepreneurial needs into strategies so the companies can develop products and programs for entrepreneurs, rather than adapting existing ones. However, for this to be effective, the company must be receptive to their insights.

EIRs also give hands-on support; they're not just strategists. Take Russ Wallace, who was an EIR at RAA Ventures. He was ready to tackle diverse tasks, even those that engineers might avoid. The willingness to roll up their sleeves and execute on various projects sets EIRs apart from traditional consultants.

How to Become an Entrepreneur in Residence

Yes, it’s not a typical role you find plastered all over standard job boards, though they do appear. It often comes down to a blend of who you are, what you’ve done, and who you know (or who knows you).

First off, let's take a look at the skills and experience needed:

• The "been there, built that" badge. Exits (successful or even "learning experience" failures) are a huge plus. If you’re a successful exited founder, your previous investors are often the first port of call. They know you, they trust you (hopefully!), and they might be keen to bring you in as an EIR.
• Deep industry expertise. If a VC specializes in fintech, they'll likely want an EIR who knows fintech inside out.
• A robust network. Your LinkedIn connections are a valuable asset.
• Strong communication and mentoring skills. You need to be able to articulate your ideas, give constructive feedback, and inspire others.
• Self-starter mentality & ambiguity tolerance. If you need a detailed to-do list every morning, this probably isn't for you.
• Strategic thinking & creativity. You need to be able to think big and come up with novel solutions.

Now, what about typical career backgrounds? There's no single path, but some are more common:

• Serial founders
• Early startup operators/executives
• Domain experts with an entrepreneurial streak
• Ex-VCs or investors

Pitching yourself as an EIR is a whole other story. Many EIR roles are filled through personal connections. It’s best to attend industry events, reach out to partners at VC firms you admire, and connect with innovation leads at corporations in your sector

And you won’t be showing up saying, "I want to be an EIR." You need to have some ideas already:

• What market are you interested in exploring?
• What problem are you passionate about solving? 

Even if your ideas are half-baked, they show you're already thinking like an EIR. For VCs, this is especially critical because you're showing them potential future investments.

Your value proposition should stand out, too, but, most importantly, it should be informative:

• What unique experience, network, or perspective do you bring? 
• How can you specifically help that organization achieve its goals? (Research their portfolio first.)

Sometimes, an organization might not even have a formal EIR program, but if you can convince them of the value you'd bring, they might create one for you. This does require a compelling case and a clear understanding of what they need (even if they don’t know it yet).

Note: These roles are often temporary (6-18 months is common), and compensation varies (more on that later).

EIR: Venture Capital vs. Corporate vs. Academic

Let's throw these different flavors of entrepreneur in residence into the comparison table and see how they stack up.

Before you leap into any setting, you need to deeply consider what kind of environment you thrive in and what kind of impact you're itching to make.

Pros and Cons of Being an EIR

Stepping into the shoes of an entrepreneur in residence sounds pretty glamorous. But as you can see from the requirements and the possible environment, it might not be for all.

Why you'd jump in:

1. You're given a runway (time and resources) to chase ideas, research new markets, and tinker without the immediate pressure of payroll or investor demands breathing down your neck like you would in your own fledgling startup.
2. VCs open their contact lists, corporations offer their infrastructure or customer base, and universities provide research and bright young minds. You're not starting from absolute zero. 
3. An EIR role typically comes with a salary or stipend. It’s not founder-level mega-bucks, but it pays the bills while you're figuring out your next move.
4. The potential for tangible impact is huge. You're gaining your hard-won experience for something new and exciting.
5. You're exposed to new industries, technologies, and ways of thinking. You get to see how VCs make decisions, or how large organizations try to innovate.
6. Unlike bootstrapping your own startup from day one, you're not putting your life savings on the line during the EIR exploration phase. The host organization is shouldering that initial risk.

Why you wouldn’t:

1. The role can be incredibly ill-defined. "Go innovate!" sounds great, but what does that actually mean day-to-day?
2. Most EIR gigs are not forever and last 6 to 18 months. There's pressure to produce something tangible (a new company idea or a successful project) within that timeframe.
3. People expect entrepreneurial magic. If you don't spin up a unicorn or revolutionize the company, there will be a sense of disappointment (yours and theirs).
4. You're operating within someone else's framework. The VC might pass on the idea you love. The corporation might pivot your project due to internal politics. You don't have final say in the same way you would as a solo founder.
5. Some EIRs find it hard to leave the relative comfort of the host organization and jump back into the true chaos of a standalone startup, even if that was their original plan.
6. Sometimes the organization doesn't understand what an EIR is supposed to do, or they say they want radical innovation, but then get scared when they see it.
7. There's income, but it might be less than you'd make as a successful CEO. And if you're in a VC, the real payday only comes if you successfully launch a company and it gets funded (and eventually exits).

So, being an EIR is an incredible career-defining experience, a launchpad for your next big adventure, or a chance to give back. But it's crucial to go in with your eyes wide open, understand the specific flavor of chaos and opportunity that awaits you in this role.

FAQs

What is the full form of EIR? 

EIR full form stands for Entrepreneur in Residence.

Do EIRs get paid? 

Generally, yes, but it's a spectrum. In most EIR venture capital and corporate settings, EIRs receive a salary or a stipend, plus benefits. The amount depends on the firm/company, the EIR's experience, and the expected outcomes. 

For instance, some VCs might offer a more modest base but significant equity in any company the EIR launches and the firm funds. Corporate EIRs might get a salary competitive with other senior innovation roles. 

In academic settings, compensation ranges from a decent salary (at well-funded universities) to a smaller stipend or a volunteer role. So, the EIR role doesn't translate to a standardized paycheck.

How long does an EIR program last? 

It's not a forever gig, more like a special mission with a time limit. Most EIR engagements last anywhere from 6 to 18 months. Some can be shorter, around 3 months, if tied to a specific accelerator program cohort. Others might extend to 24 months if a particularly promising venture is being incubated.

Can you become an EIR without previous founder experience?

The "classic" entrepreneur in residence profile is a former founder, but it's not an ironclad rule everywhere, though it is highly preferred and often a near necessity. 

It's very, very common for VC firms to require direct founding experience. They want someone who has truly been in the startup trenches from day one. For corporate EIR roles, there might be a little more flexibility. If you have exceptionally strong intrapreneurial experience (launched multiple new products or business units in a large company) or possess rare domain expertise that the corporation desperately needs for a new venture, they might consider you. 

However, someone who has only ever worked in traditional corporate roles without significant entrepreneurial or new-venture creation experience would likely find it challenging. 

And in academic or incubator roles, again, ex-founders are prime candidates because they can share firsthand experiences. But very seasoned early-stage startup executives, like an early VP of Product at a well-known success, or specialized consultants who have worked intimately with many startups, might fit the bill, if they have strong mentoring capabilities.