When I was a trainee at the Brigham and Women’s Hospital, there were a handful of physician tech entrepreneurs who held a near-mystical alumni status. Visionaries like Dr. Tom Lee, founder of Epocrates and One Medical, and Dr. Krishna Yeshwant, a serial entrepreneur and managing partner at Google Ventures, sparked a burning question in my mind: How did they do it? How did their medical training pave the way for such groundbreaking entrepreneurial journeys.
Today, many more physicians have joined their ranks as physician entrepreneurs and even more have built careers that bridge the gap between clinical practice and the world of start-ups. Starting my own tech company during residency was an education in itself and truly an eye-opening experience. Now on the other side of the physician entrepreneur journey — as a founder, operator, and advisor to start-ups — I’m often asked how to explore or embark on such a career. Fortunately, there are many opportunities that accommodate a range of clinical practices if you’re not ready to launch your own venture just yet.
Dip your toes in: becoming a physician advisor
For physicians new to the start-up scene, I highly recommend starting with advisory roles. It’s hands down the easiest way to engage, requiring minimal commitment while offering exposure to a diverse range of companies. This allows you to explore the cultures, leadership styles, and business models that truly energize you. This last point is truly important: start-ups vary tremendously, and the impact of founders cannot be overstated. One of the best things you can do is experience a variety of start-ups before diving into any given venture.
Fortunately, opportunities abound. As a physician, your experience, knowledge, and professional network are sought after by start-ups, especially in the early stages before a company is able to hire their own medical team. The industry standard compensation for advisors is equity. A common arrangement would ask an advisor for up to four hours of time a month in exchange for a nominal amount of equity (e.g., 0.25 to 0.5%), vested over three to four years. This is time truly advising: providing feedback, insight, advice, and the occasional introduction. Specifically, it is not consulting work, and you shouldn’t be asked to produce a work product or touch patient care.
Take the leap: join a start-up as an employee
If you are ready for a more substantial commitment, you can join a start-up as a part-time consultant or full-time employee. For part-time engagements, I advise negotiating based on specific workdays. This safeguards your clinical hours and prevents your already busy days from being overwhelmed with Slack messages, emails, and meeting requests.
As a consultant, your compensation will typically be in cash. In early-stage ventures where your involvement is expected to last at least a year, you may also receive equity. Equity is frequently used by companies to offset the cash compensation they pay you and also incentivize you with the potential for significant returns if the company succeeds. If you are an employee, your compensation should be a blend of cash and equity.
A general rule of thumb: the more mature the company, the more likely they can offer a market-rate salary. Early-stage companies are highly cash conscious, so be prepared for a significant ‘pay cut’ if you wish to work there. If cash compensation is very important to you, then I recommend working with companies that have raised significant capital, such as a Series B company or later.
Where to find opportunities
If you’re a recognized leader in your field, you may already be fielding inquiries from companies eager to collaborate. Your professional influence and accolades gained through leadership in research, health care administration, or professional organizations, will naturally garner more inbound interest for your services and often translate to more generous equity offers as well.
However, even early-career physicians, including trainees, offer valuable knowledge and services. If you are earlier in your career, expect to do the legwork to find start-ups that you find exciting and to which you might have something valuable to offer. Local start-up communities, accelerators, and incubators are excellent starting points. Many organizers in these communities actively cultivate such relationships and would be eager to connect you with their portfolio companies. Early-stage investors are also a great resource, and I always encourage interested physicians to build relationships with investors and offer your help with their portfolio.
Like any networking activity, you will get more out of it the more you put in. Subscribe to mailing lists, attend local events, set up informational interviews, and don’t shy away from sending the occasional cold email. Now that remote work is commonplace, don’t feel limited by your location or community. Regardless of where you live across the country, reach out to companies and networks across the country, especially in start-up hubs in Silicon Valley, Boston, and New York. Use these experiences and conversations to explore your interests, deepen your understanding of the start-up experience, and most importantly, have some fun!
