A Story Idea Each Day for a Month — Day 13
This is a reverse of the student loan story. In this one, the loan is ‘free’: “6 Months, $90,000 and (Maybe) a Great Idea”:
THE print hanging behind the receptionist’s desk at Foundation Capital screams, “Our greatest thrill is to loan you money” — in chunky, capitalized red letters. That’s encouraging news for Michael Bauer, because he wants money and has put himself in a prime position to get it.
Mr. Bauer has set up shop on the second floor of Foundation Capital’s offices here to pursue his dream of creating an energy company from scratch. He pays no rent to operate out of the building, which is designed to evoke a Mediterranean villa. And he’s free to enjoy all the trappings of this venture capital firm, including its ample parking, woodsy surroundings and outdoor patio.
Mr. Bauer has won these cozy environs through a new role as an “entrepreneur in residence.” This coveted position, called an E.I.R. in Silicon Valley shorthand, is emblematic of the valley’s economy of ideas. Most E.I.R.’s receive a monthly stipend of up to $15,000 to sit and think for about six months. In return, the venture capital firm usually gets the first shot at financing the idea that emerges from this meditation.
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The entrepreneur-in-residence model has gained prominence as a calculated way for a venture capital firm to nurture a successful company into being and to increase the odds of solid returns. The firms often tap someone who has successfully started and sold a start-up, hoping that lightning will strike twice.
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Leading venture capital firms today may have two or three E.I.R.’s on the payroll at any one time. An E.I.R. typically has an office, an assistant and what people in Silicon Valley almost always refer to as a “nominal fee” of $10,000 to $15,000 a month. It’s enough to tide over the elite business people whom investors are looking for, so that they aren’t worried about lacking a day job for six months.
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In exchange for the office and the stipend, the E.I.R. provides a few basic services.
He or she becomes part of the audience for start-up road shows, sitting in on the daily presentations that other companies pitch to the venture capital firm and advising the investors about the ideas’ merits. In addition, the E.I.R. agrees — via contract or, more often, tacitly — to give the venture capital firm the first shot to invest in an idea.
“It is as ruthless and profit-oriented at the end of the day as anything else a V.C. does,” said Adam Gross, a former E.I.R. at Redpoint Ventures.
When I read this article about Entrepreneurs-In-Residence (E.I.R.), the first image I had was the movie Ghost Busters where our three ‘heroes’ — Dr. Venkman (Bill Murray), Dr. Stantz (Dan Aykroyd), and Dr. Spengler (Harold Ramis) — have a fateful meeting with Dean Yeager (Jordan Charney):
Dr Ray Stantz: Hey, Dean Yeager! Are you moving us to a better office on campus?
Dean Yeager: No, you’re being moved off campus. The Board of Regents has decided to terminate your grant. You are to vacate these premises immediately.
Dr Ray Stantz: What?
Dr. Peter Venkman: This is preposterous. I demand an explanation.
Dean Yeager: This university will no longer continue any funding for any of your group’s activities.
Dr. Peter Venkman: But the kids love us!
Dean Yeager: Doctor… Venkman. The purpose of science is to serve mankind. You seem to regard science as some kind of dodge… or hustle. Your theories are the worst kind of popular tripe, your methods are sloppy, and your conclusions are highly questionable! You are a poor scientist, Dr. Venkman!
Dr. Peter Venkman: I see.
Dean Yeager: And you have no place in this department, or this university.
So my first thought was this: What if the Protagonist is a young, idealistic entrepreneur? And s/he lands one of these cherished E.I.R. gigs? Thrilled they show up their first day at the office building where all the entrepreneurs-in-residence are, ready to jump into their idea-development, but s/he is immediately confronted by a Dr. Venkman-type, an E.I.R. ne’er do well, someone who has managed to cobble together one E.I.R. gig after another, all based on the tiniest kernels of ideas and the overwhelming power of this character’s personality, affording them the opportunity to party hearty in Silicon Valley.
Ala one of my favorite movies Zorba the Greek, the story could be about the Protagonist’s change from head to heart, spurred on by their seemingly crazed Mentor.
Or you could go rom-com: The Protagonist might be a young woman who has the obligatory meet cute with our Dr. Venkman-type character the first day of her E.I.R. gig, establishing a contentious start to their relationship, leading — eventually — to romance. Or it might be interesting to swap the genders: The Protagonist is a young man and our Venkman character is a dynamic woman — big ideas, big personalities, big party type.
Another comedy take: If we assume that these E.I.R.-types are extremely competitive, what if P starts their gig among several other entrepreneurs, and the story is each of them attempting to sabotage the other? Or you could take this more of a thriller route where it turns out the V.C. group has brought together this collection of entrepreneurs as a social experiment, spying on them to see who will do what and how far they will go to succeed — a variation of “The Apprentice.”
How about another thriller version: Young Protagonist gets accepted as an E.I.R. with a prestigious V.C. outfit. However as the P earnestly goes about their business, they begin to suspect that the company for whom they are working is not what they appear, rather a sinister group with a nefarious plot — and the P’s ideas are a key part of their plan. P tries to escape, but discovers they can’t, then has to fight back to stop the ‘Bad Guys.’
A lot of ways to go, but at its heart (A) an interesting subculture (young visionary entrepreneurs), (B) the intriguing world of Silicon Valley, and © the wish fulfillment dynamic of being given money, support, and six months to follow your dreams.
What would you do with this story idea?