Hi, This is going to sound very dumb but what job title/function is this: - You evaluate start-up companies/early stage investments - Then after your fund makes an investment in the company, you actually temporarily join the start up and work on strategy or write code for them - Repeat
Is this actually a job? This would be kind of a dream job, but I'm not sure where to start and I'm too embarrassed to ask my friends if this is a thing. Would this be housed at a VC? I think a PE would only handle the first bullet, but the appeal to me is both bullets together.
Sorry for the dumb question. Thanks y'all.
Never heard of anything like this however you might create this concept (code for equity) similarly to media for equity.
I feel like a family office or smaller VC might actually go for this if it's pitched well (i.e.: I worked at a BB bank and worked in strategy at a top tech....so why not?). Thanks for the reply!
I guess pitch it this way:
there is so much capital in VC right now that investors do not only need capital when a VC invests
hence a good strategy advisor that is able to help on the technical side would be helpful for them
You probably could do something similar on a freelance basis if you want. I have seen people that worked in VC that are now advising startups and running their rounds. They know which are the goods VCs, they know how to build decks, they know how to pitch a product/idea. You definitely could do this and when not helping on rounds help on code.
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Really? That is excellent. I definitely don't want to code out a report, but I do want to leverage my days in tech and 'advise' and suggest KPIs, etc... I'd even mentor some of the data scientists/analysts. But this makes me feel better - there isn't a 'title' I suggest when I reach out, right? I plan on cold emailing a few folks and VCs after my bonus.
maybe is this fake offer?
At a VC fund they call these platform roles. Normally, you will work with a select few startups under your expertise umbrella and help them build out products/strategy/marketing/sales/anything. You're able to learn about the startups from the ground up, and usually, it helps make you a better investor for later in life. I'd straight up email smaller VCs who have $300M and ask them if there is anything you can do to help. These are shops that can't add as much value via capital (unlike the Sequoia, USV, A16Z, etc.) so they do so with platform roles. However, don't be confused. funds like First Round and FirstMark still have platform roles available, but usually less operations focused and more network based in hopes of attracting founders.
Look at companies funds like; - Human Ventures - ffVC - Plug and Play
Thank you so much! Super helpful.
If I'm not mistaken, isn't this what Dorm room fund does?
Dorm Room Funds are funded by First Round Capital and give students the opportunity to invest in other students. Platform roles are everything else. Here's a good slide as to what it's like to work at a fund.
https://www.slideshare.net/msuster/staff-at-vc-firms
Right, but isn't part of the model that the fund helps build software for their portfolio companies as well as invest for the equity?
https://medium.com/@yasyf/come-hack-at-dorm-room-fund-4a38bbe8354c
Random question - how is comp in one of these types of EIR roles? Any idea or ballpark estimate?
Also, again, thank you so much for your help + thoughts. Much, much appreciated.
Unsure tbh. Are you referring to Entrepreneur in residence? All dependent on fund size + individual. As a rule of thumb, most places follow a 2 and 20 rule. Meaning, they take 2% management fee + 20% profits. So there's a huge difference between going to work for a smaller fund by AUM vs a smaller fund by employees.
Here's an example.
USV is a $1B fund (not really sure of their fund structure, but GP Fred Wilson recently sold his Greenwich Village town house for like $40M. If they take 2%, that has to go to all the GPs, Principal, Associates, Platform, etc.
Then there is somewhere like FFVC which is ~$250M Aum. They have a really large platform team where partners take notably less management fee (I think partners only take $500k, must be living paycheck to paycheck, right?) in order to have a platform team, more money to invest, etc.
It's a lot easier to stretch more money than less, but with that said I wouldn't expect them to pay an EIR a lot. At the end of the day, the investment team makes the big bucks and platform/supporting roles are realistically just a job with hopefully a nice bonus. I really have no clue tbh, but wanted to answer.
Could be $50-$100k
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