What does a domain expert at a VC accelerator do?
January 5, 2015 4:54 PM Subscribe
Someone from a venture capital firm has sought me out as a domain expert. I have no experience with this role and want to know what it's all about.
I work in the tech sector and I get pinged by recruiters every now and then, but I recently had a contact from someone in a venture capital firm who is starting up a new accelerator and looking to connect with experts. I believe he is going to ask me to serve some kind of role at this accelerator on the basis of my domain expertise. I do have expertise squarely in the domain they are targeting, and this person knows my employer, so it seems to be a legit request.
Can anyone tell me what kind of things a domain expert might be asked to do for an accelerator, and what might be offered in return? My time is not free, so I'm imagining this would be a consulting relationship of some sort (otherwise I'll say no), but if so what are the standard parameters for this, what sort of rate should I charge, what is the expected behavior and relationship here?
I work in the tech sector and I get pinged by recruiters every now and then, but I recently had a contact from someone in a venture capital firm who is starting up a new accelerator and looking to connect with experts. I believe he is going to ask me to serve some kind of role at this accelerator on the basis of my domain expertise. I do have expertise squarely in the domain they are targeting, and this person knows my employer, so it seems to be a legit request.
Can anyone tell me what kind of things a domain expert might be asked to do for an accelerator, and what might be offered in return? My time is not free, so I'm imagining this would be a consulting relationship of some sort (otherwise I'll say no), but if so what are the standard parameters for this, what sort of rate should I charge, what is the expected behavior and relationship here?
Seconding Ruthless Bunny on this one. Only they will know why they need a domain expert like you, so they're the only ones to describe what would be required, and then you can make an informed decision about what appropriate compensation should be. I would expect that appropriate would be along the lines of a consulting rate that is based on your experience, the nature of the domain in question (e.g. is it difficult to find another expert in this field), and most importantly on how valuable your time is to you. Letting them offer first will let you know how serious they are about this.
posted by Aleyn at 5:43 PM on January 5, 2015 [1 favorite]
posted by Aleyn at 5:43 PM on January 5, 2015 [1 favorite]
In addition to the good advice above, one of the benefits of a relationship like this, beyond the monetary, is the ability to interact with early-stage companies that have been vetted by other people, without quitting your day job. It can be a great opportunity to really get to know a company that might be an interesting place to work 2-3 years down the line from your first interactions with them. And depending on your appetite for risk, the opportunity to do some consulting for a mix of cash & equity in startups in your domain may or may not be of interest to you.
posted by deludingmyself at 5:54 PM on January 5, 2015
posted by deludingmyself at 5:54 PM on January 5, 2015
Oh, and in terms of things they might want you to do, yes, let the guy talk first about what he envisions, but:
- they might want you to scout new companies
- they might want you to evaluate companies for inclusion in the accelerator
- they might want you to advise them on the method THEY should use to evaluate companies
- they might want you to advise the companies in the accelerator itself (on the business strategy side or the technical end or whatever is your area of expertise)
- they might want to tap your professional network to identify potential employees or consultants or advisors/board members for firms in the accelerator
Those are just some things that spring to mind as possibilities. From my peripheral interactions in this world, if you're interested in doing consulting work, I think you're smart to not just show up and hear what he has to say, but to actively think about what you could bring to the table. There's a feedback loop of mutual enthusiasm/engagement that helps drive consulting projects to action, and if you're too passive, they may mistake that for disinterest and take a pass on working with you. If you're truly interested in the opportunity, I'd advise you to express enthusiasm publicly, ask lots of questions, evaluate the offer privately and keep dialoguing if you like the idea of working with them but not the specifics proposed.
posted by deludingmyself at 6:02 PM on January 5, 2015
- they might want you to scout new companies
- they might want you to evaluate companies for inclusion in the accelerator
- they might want you to advise them on the method THEY should use to evaluate companies
- they might want you to advise the companies in the accelerator itself (on the business strategy side or the technical end or whatever is your area of expertise)
- they might want to tap your professional network to identify potential employees or consultants or advisors/board members for firms in the accelerator
Those are just some things that spring to mind as possibilities. From my peripheral interactions in this world, if you're interested in doing consulting work, I think you're smart to not just show up and hear what he has to say, but to actively think about what you could bring to the table. There's a feedback loop of mutual enthusiasm/engagement that helps drive consulting projects to action, and if you're too passive, they may mistake that for disinterest and take a pass on working with you. If you're truly interested in the opportunity, I'd advise you to express enthusiasm publicly, ask lots of questions, evaluate the offer privately and keep dialoguing if you like the idea of working with them but not the specifics proposed.
posted by deludingmyself at 6:02 PM on January 5, 2015
In short, they want you to be a bullshit detector for them. Ideas or timelines presented to them might sound good to them but raise flags for you.
posted by nickggully at 8:32 PM on January 5, 2015
posted by nickggully at 8:32 PM on January 5, 2015
I've done this role for two different VC firms. In both cases, the lift was pretty light and there was no direct monetary compensation. Mainly, they wanted me to spend a few hours talking with the founders of whatever startup they were looking at (that was in my particular technology wheelhouse) and then give them feedback on what I heard and what I thought about it. Neither fund had a pure play around a specific domain or technology, so I wasn't looking at every potential investment, and probably got a call to look at something maybe once a quarter. The benefits of doing this were: (a) networking; (b) potential job offers (this got as far as serious discussion/contingent offer on two occasions); (c) a discount on the carry and other advantageous terms in the fund if I came on as a limited partner; and (d) the ability to make sidecar investments into startups alongside the fund. I've also had the opportunity to ask a lot of questions of real, working VCs about how they do things and make decisions, and seen a bunch of potential investments not close for crazy reasons. If you are interested in founding a startup, working for a VC firm, or investing as an angel or as an LP in a VC fund, these benefits are considerable. If you don't have those interests, it is probably going to feel like a waste of time or that you are being taken advantage of. (Caveat: you mention accelerator a couple of times - I have no direct experience with accelerators, so your mileage may vary there).
posted by kovacs at 8:49 PM on January 5, 2015 [2 favorites]
posted by kovacs at 8:49 PM on January 5, 2015 [2 favorites]
The compensation, as deludingmyself points out, is not always monetary.
I have in the past helped out a VC by doing technical due diligence on various possible investments, and in return got invited to "family" events where I met a lot of VIPs that I wouldn't have met otherwise. I am about to start having some informal research conversations with an analyst and am going to get "paid" in access to the research reports and I hope it also turns into some networking events.
But show up in person at a defined hour at a company or at a conference to speak or consult? I charge for that.
Only you and the accelerator can figure out what the appropriate arrangement is after you hear more about what they have in mind, as Ruthless Bunny said originally.
posted by troyer at 8:54 PM on January 5, 2015 [1 favorite]
I have in the past helped out a VC by doing technical due diligence on various possible investments, and in return got invited to "family" events where I met a lot of VIPs that I wouldn't have met otherwise. I am about to start having some informal research conversations with an analyst and am going to get "paid" in access to the research reports and I hope it also turns into some networking events.
But show up in person at a defined hour at a company or at a conference to speak or consult? I charge for that.
Only you and the accelerator can figure out what the appropriate arrangement is after you hear more about what they have in mind, as Ruthless Bunny said originally.
posted by troyer at 8:54 PM on January 5, 2015 [1 favorite]
This thread is closed to new comments.
1. Let this guy explain it to you. Let him sell you on this.
2. Make him put out the first offer.
Then decide if it's a fair deal.
posted by Ruthless Bunny at 5:04 PM on January 5, 2015 [3 favorites]