By incentivised, I mean that if a VC firm is known to steal ideas then entrepreneurs, will generally avoid them (especially if the VC firm that stole the idea was an early-staged VC) which means that their deal flow will dry up – something no VC firm wants.
Having an EIR and/or HIR allows a VC firm to provide their portfolio companies with a better level of service. VC firms are providing more than just money, they’re providing help with resources which are/maybe too early for a startup to have and when you do need them they’re helping you fill those roles – specifically they’re providing things like finance, marketing, HR, PR help etc and having an EIR and/or HIR increases the amount of service they have offer to their portfolio companies.
That said, it's the first time I hear of HIRs, and I don't think retaining such people at VCs makes any sense, precisely because this concern seems more real. It's cool if the VCs themselves have hacker backgrounds of course, but having a full time hacker on board is another matter.
entrepreneur in residence is supposed to be working on a startup- while also participating on investments- they can bring in deals, help portfolio companies, vet imminent investments, etc.
helpful?
Ataub24 explained it well, though it varies widely from firm to firm. In my case, I spend a significant chunk of my time working with the partners and the rest of the venture team on managing the investment portfolio and helping with dealflow. When there are opportunities to use technology or data to improve our workflow and decision-making process, this can come in handy, though that's not always the case. A lot of this is similar to what an EIR might be responsible for doing as well, though with a technical bent.
The rest of the time can be thought of as "20% time", except without a specific % attached to it. While there's the possibility of building a project that could be spun out, this isn't an explicit goal or requirement; my value-add comes from my ability to assist with dealflow and the rest of the work on the venture side, so the rest of my time doesn't come with any obligation, so to speak. In this way, it's not too dissimilar from a traditional 'artist-in-residence'. (This is where Quotidian differs from a number of other firms).
"Ideas are valueless, it is all about execution. Anyone who says differently is either misinformed or unable to execute."
Doesn't minimize the sting sadly.
what will happen is the HIR/EIR will take an idea that they haven't invested in yet (heard during a pitch, maybe), and incorporate it into a company they HAVE invested in.
