Can You Trust An Early-Stage VC With a HIR and EIR?
I’ve been thinking about the concept of a hacker-in-residence (HIR) and entrepreneur-in-residence (EIR). I think these are very cool roles at VC funds. Lots of place have them now. But I have a nagging question in the back of my mind: Can you trust an early-stage VC with your idea/biz when they have a HIR and EIR?
First off, stealing ideas is a misnomer. Ideas are valueless, it is all about execution. Anyone who says differently is either misinformed or unable to execute. But, normally when people ask if a VC will steal your idea when you pitch them, I’d say, maybe…but doubtful. They are not in the business of building companies, they are in the business of funding companies.
BUT… with an EIR and HIR, where the EIR is actively looking to build a business at the VC and spin it off, and they have an in-house hacker that can build a prototype quickly…well now things change.
I still firmly believe VC’s are in the business of funding companies, and you shouldn’t worry too much about an EIR stealing your idea/business. EIR’s are there to give an entrepreneur’s viewpoint and help incoming business.
But listen, it’s not like it hasn’t happened before…
This post was originally published three years ago on my personal blog, Alex’s Tech Thoughts