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“Sorry about the suit,” he offers with his handshake. His greeting captures a great deal about his attitude—and even more about his profession.
Mark is an entrepreneur-in-residence (EIR) for Ventures West, one of Canada’s larger investors. His job, which he began early this year, calls on every aspect of his 20+ years of executive experience in enterprise software and growing a successful company.
As an EIR, Mark’s job is to scrutinize the next big space; the massively disruptive technologies at the bleeding edge, and then either fund and accelerate young prospects in that space or create a company and a product for it. Ultimately, his purpose is to get ‘back in the game’ by taking an executive position at a groomed, hand-picked startup.
“Some EIRs are cut out to be good VCs…but many of us share a passion for building stuff, we’d rather get our hands on something and fight in the trenches – that’s what makes it thrilling. A fundamental characteristic of any EIR is that they want to do it again.” – Mark Ruddock
“They (Ventures West) really want you to find the next big thing,” Mark says, “you figure out where the next hot opportunities are and (they) back you when you’re ready.”
But that’s only a hint of the many roles that EIRs are required to fill. Mark describes three specific day-to-day duties, beginning with investment officer.
As someone with entrepreneurial experience, Mark brings an operator’s perspective to evaluating and reviewing “dealflow”. Term sheets, analysis, and closing deals are all part of the job.
As Mark puts it, the VC “gets visibility into what’s going on—the EIRs connect with emerging ideas and people in a way that traditional investors can’t”.
“Once you start to identify the points of light, then the focus starts to shift around really drilling deep and building a business plan and going after it.” – Mark Ruddock
The second hat an EIR wears is that of Mentor to a firm’s portfolio companies – and prospective clients. An EIR helps startups in a number of ways (depending in part on their own operational strengths).
“Some [startups] are playing in a space that has no parallel – they are helping to build brand new business models. You have to be careful not to bring your presumptions and your past to bear.” – Mark Ruddock
That may involve leading a strategy session, or reviewing a financing pitch. Sometimes, Mark says ruefully, “it’s as simple as relating a time where you faced a similar situation – and stubbed your toe”.
From EIR to CEO, or CTO in 12 months
Hanging above their daily obligations is an EIR’s paradoxical duty – to put themselves out of work. Ultimately, every EIR is hired to find an operational fit, a portfolio company that they can lead or guide to success – and ensure a healthy return for the VC firm.
That means scrutinizing not only startups, but predicting where opportunity lies in the technological jungle.
As Mark puts it, “my job, first and foremost, [is] to go find and/or build another great venture, period”.
DNA of an EIR
Like Mark, Salim Teja has an operational background, having co-founded and acted as VP of Business Development for dotcom-era startup MobShop.
Salim accepted an EIR position with Mosaic Venture Partners in 2002. However, the post-bubble market prevented him from completing the EIR trifecta and jumping to a startup (he is currently a VP at venture firm Brightspark).
Affable and plainspoken, Salim’s take on an EIR’s genetic makeup echoes that of Mark Ruddock.
Whether they are cut from an executive or technical cloth, he says, EIRs are energized by new ideas and the power of disruption—and by the smart, motivated people they mentor.
“Because they come from an operational world (EIRs) want to get involved with something, this is a chance for them to catch their breath, get a sense of the landscape and find their best fit.” – Salim Teja
What kind of people are best suited to becoming an EIR? Individuals who can survey the technological battlefield, dispense sage advice to fledgling companies and stay hungry enough to want to charge into the fight themselves?
The same souls who chafe under the seams of double-breasted, three-pieces suits, itching to trade it in for the khakis-and-cuff links fatigues of a startup exec.
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