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.
“The E.I.R. takes out some of the risk because they are known quantities,” said Adam Grosser, a partner at Foundation Capital. “They have a track record of success and a proven ability to disrupt a market with their ideas.”
To read the full, original article click on this link: With E.I.R.’s, Investors Are Growing Their Own Start-Ups - NYTimes.com
Author: ASHLEE VANCE and CLAIRE CAIN MILLER
