I think the #1 mistake people make here is thinking VCs are looking for EIRs to act like mini-GPs.
- VCs don’t want EIRs to source deals. Yes, if it’s a truly amazing deal that’s great, but most VCs think they have plenty of deal flow already.
- VCs do want help looking at companies from EIRs where they have domain expertise … but they don’t value it that much. Others can help here, too.
- VCs don’t even really care that much if EIRs help portfolio companies, although if the EIR has a good brand, they’ll make the intros.
VCs have specific goals for EIRs, at least usually.
This is either to:
- found a company the VC firm invests in; or
- join, as CEO or a very senior exec, a portfolio investment.
If the EIR either founds a good investment, or joins as CEO of an investment — that moves the needle for the firm.
The other stuff is nice and all. But it doesn’t move the needle. So in the end, no one will really care that much.
VC is about trying to triple or more the amount of capital provided to the GPs.