

Can You Trust An Early-Stage VC With a HIR and EIR? - mschonfeld
http://alexstechthoughts.com/post/45913644960/can-you-trust-an-early-stage-vc-with-a-hir-and-eir

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itsprofitbaron
I think you can trust VC firms because they are _incentivised_ to not steal
your idea. In fact, they see that many ideas there will probably be 4-5
entrepreneurs pitching them the same idea potentially with the same/slightly
different spin on it.

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.

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Ataub24
Definitely. Thanks for this. The post was specifically early-stage - and it
isn't the VC that would steal it - it's the HIR and EIR - the VC would still
fund it, but just their guys/gals. But everything you said makes a lot of
sense.

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arbuge
I was an EIR once. The thought of copying someone's idea never even vaguely
occurred to me - indeed, I was taken on board to further develop a preexisting
idea. May not be true at less reputable venture firms, but in general the
maxim of not worrying too much about people stealing your idea still applies.

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.

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Hitchhiker
Ladies and Gentlemen, we have a post where there will be much " strategic "
silence in terms of comments and loads of up-votes.

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greghinch
If the team is good, no amount of competition will kill a company with a good
idea. Think about it this way: how many great products and services do you use
that have no competition? If your idea and team are worth investing in, then
no one will be able to stop you by "stealing" the idea.

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arethuza
Can someone explain to me what a HIR and EIR would do at a VC?

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Ataub24
hacker in residence can do a bunch of things. build new website for them,
build stuff on portfolio companys APIs, start building their own project.
depends on the vc and what they want. Also depends on the hacker and what they
want.

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?

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arethuza
Yes thanks.

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funnyguy123
Please stop writing this sort of junk:

"Ideas are valueless, it is all about execution. Anyone who says differently
is either misinformed or unable to execute."

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Ataub24
super constructive. thanks.

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funnyguy123
If you're going to take such a dogmatic stance in your writing then you should
be prepared for the criticism. I don't think anyone is interested in rehashing
the debate about the value of ideas on this thread. Suffice it to say there
are plenty of very well informed people who have built companies and believe
that ideas are valuable and worth protecting. So when you demean your audience
by suggesting otherwise you can expect people to take offense, dismiss
whatever else you have to say, or both.

~~~
camz
The fact the author expresses his personal opinion shouldn't be an issue for a
reader because they avail themselves to his thoughts by reading the article.
He's allowed to write what he wants and more importantly believes. Either
constructively rebut the issue or ignore it.

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ivankirigin
It is so much more likely that your product is bad because you avoid telling
people about it than your product idea is copied and crushed by another
upstart

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rficcaglia
It happens. Personal experience. That said, if you do your homework on the
team you can minimize the probability.

Doesn't minimize the sting sadly.

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beachstartup
i see a lot of "the VCs are incentivized against stealing..."

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.

