Otolaryngologists as Entrepreneurs: Transforming Patient Care And Practice

Additional investment is typically necessary—and can be difficult to secure. “Only about one percent of pitches can get any funding, and only 0.05 percent of startups get venture capital funding,” Dr. Gonzales said. Early-stage entrepreneurs must be strategic and persistent. “Talk with anyone in your field who has received funding. Find connections through your corporate lawyers and IP attorneys; get intros anywhere you can,” Dr. Gonzales said.

Although it is difficult for new entrepreneurs to obtain funding from venture capitalists, investors are beginning to take an interest in otolaryngology.

“Historically, otolaryngology has been underserved by venture capital, with very few startups in comparison to other specialties. Yet we treat diseases that impact a large number of patients, like chronic sinusitis, hearing loss, and sleep apnea. Our specialty is poised for growth, with tremendous opportunity and funds available for new startups,” Dr. Gonzales said.

You’ll need to convince potential investors of the value of your idea. When Dr. Gonzales was developing the Latera nasal valve implant, his company funded a study that demonstrated nasal valve collapse was underdiagnosed and significantly more common than most people realized (Ear Nose Throat J. doi: 10.1177/014556131809700615). Once potential investors understood the size of the market, they realized the implant could drive significant returns.

Step 6: Bring Your Product or Service to Market

One of the biggest decisions in medical entrepreneurship is whether to bring your product to market yourself or sell it—but that choice isn’t entirely yours. Medical device commercialization requires significant funding, and investors expect a return within a specific timeframe. Staying private often doesn’t generate the returns they need, making acquisition by a larger company the most common path.

Advice From Physician–Entrepreneurs

Business can help you make a big impact. “A question on my NIH application grant—How is your research going to make an impact on the U.S. population?—changed my focus. I became much more interested in research that would fundamentally lead to improvements in healthcare,” Dr. Das said, “and focused on developing innovations that can be used by a lot of people.”

Ideas are valuable, but probably not as valuable as you think. A lot of good ideas don’t go far. And some pretty mediocre ideas generate spectacular profits. “People tend to dramatically overvalue the value of an idea or patent,” Dr. Das said. “Inventions are, at most, maybe one to five percent of a company’s value.” Value is developed by addressing and solving a clinically valuable problem—and doing so requires a viable business model, regulatory pathway, and clear route to adoption. Business success results when you turn an idea into a scalable, sustainable solution.

Invest wisely. “Be paranoid enough to protect your idea, but not too paranoid to share it with the right people,” Dr. Gonzales said. Spending money to secure your intellectual property is smart. So is hiring a good corporate attorney and patent attorney. “This is one of those areas where you get what you pay for,” he added.

Don’t delay; start a company. “Forming a company that owns your patents should be one of your first steps,” Dr. Gonzales said. “To attract investors, you need to have something they can invest in.”

Take risks. “There’s a lot more freedom to try and fail in entrepreneurship than in surgery,” Dr. Das said. “It’s okay to start down a road where you don’t know what you’re doing and make a lot of mistakes. You’ll be continuously learning and improving.”

Bringing a new product or service to market is rarely a straight path, but for otolaryngologists with the right vision, expertise, and team, entrepreneurship offers an opportunity to drive innovation, improve patient care, and make a lasting impact on the field.  

Jennifer Fink is a freelance medical writer based in Wisconsin.