EIR | VC Lingo | SOSV – The Accelerator VC

EIR, or Executive in Residence. A lot of different venture capital firms
work with people who are not actually partners at the firm, but are people that are
engaged with the firm. And sort of maybe even in between places
like they’ve had a successful outcome, they had an IPO or a business
that got sold and or merged. And sometimes in those
sales and those mergers, there are people that don’t come
along for the, for the ride, or they take their, their exit and they
have the golden parachute and they, they’re looking for the next thing to do. So a lot of VC firms will have one or two
or three sort of people kicking around the place that are Executives
in Residence, meaning that may, they may have an office at a VC firm
or in the case of an accelerator, the same thing that, that an EIR will be somebody
who will be helpful to the, the startups that are going through an
accelerator and and possibly even get more and more involved in those companies as they go through their businesses. So an EIR will sometimes be sort
of sucked into a company that, that is in the portfolio
or brought into as an advisor into a startup company, even joining as a board member. Sometimes representing the venture
capital firms interests and sometimes just representing their own interests. The EIR’s often have enough wealth that
had been generated by their previous activities that they can also become
angel investors, et cetera. EIRs can be present in a firm, sometimes they’re just getting free office
space and a free association with the firm. And sometimes they’ll be getting paid
a monthly retainer in return for doing work for the firm and analyzing whether
or not to invest in companies and things along that lines. But it’s not considered a longterm role. It’s considered a transitory role. Sometimes it works its way into an EIR, even sometimes becoming a partner at
a firm if they have stayed in and done some, discovered some amazing companies or
helped progress some companies along the lines. And other times it’s used as a way for
the firms themselves to find talent that they, they bring into the
startup as the startup grows. That is what the term EIR refers
to. Executive in Residence. VC lingo…

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