Against All Odds: Four Doctors' Journey to Break Through in MedTech Entrepreneurship

As an indispensable and vital group within the medical device industry, how can physicians be better supported in launching startups and realizing their professional value? Is there a viable pathway tailored to physicians that enhances the likelihood of entrepreneurial success? Proxima Capital offers valuable insights based on its practical experience in assisting physician-led startups over the past few years.

Throughout the history of global medical device development, physicians have played a pivotal role behind the emergence of numerous medical devices.

For example, in 1816, French physician René Laennec invented the stethoscope to clearly hear patients’ heart sounds and accurately diagnose diseases. The advent of the stethoscope not only made clinical diagnoses more accurate and treatments more timely and rational, but also created a substantial market for stethoscope devices. Cardiac surgeon Åke Senning and medical engineer Rune Elmqvist collaborated in Sweden to develop the world’s first implantable cardiac pacemaker, which was implanted in 1958 into a 43-year-old patient with complete atrioventricular block. With the aid of this pacemaker, the patient’s lifespan was doubled, and he passed away at the age of 86.

An examination of the entrepreneurial histories of overseas medical device companies also reveals that the vast majority either engage experts with clinical backgrounds as advisors or have founders and co-founders who are physicians themselves. As key participants in the startup process, physicians often provide in-depth involvement and professional recommendations throughout the entire product development lifecycle, from initial needs identification to clinical trials.

Recognizing the critical role and value of clinicians in medical device entrepreneurship, numerous renowned overseas enterprises, universities, innovation centers, and other institutions organize a diverse array of medical device innovation activities to support physician-led startups. For instance, Stanford University has specifically launched the BioDesign program to systematically train physicians on how to launch ventures in the medical device sector. The Cleveland Clinic in the United States holds an annual Medical Innovation Challenge to identify healthcare technologies with disruptive potential. Globally prominent medical innovation hubs, such as Johns Hopkins Hospital and the Texas Medical Center, have also established medical incubators and translation centers to facilitate the commercialization of research findings and foster physician entrepreneurship.

As we can see, the model of physician entrepreneurship overseas has matured and achieved significant results. In contrast, the model in China is still in an exploratory phase. However, with the introduction of multiple national healthcare reform policies, not only have restrictions on physicians’ multi-site practice been relaxed, but the barriers to establishing private medical institutions have also been continuously lowered, making it possible for physicians to launch startups in the medical device sector. Today, a number of physicians have successfully left the public system to establish their own startups.

According to statistics from VCBeat, physicians can engage in entrepreneurship within the medical device industry through various channels, some of which enable them to realize their professional value while mitigating risks.

First, physicians, as founders or co-founders, design and develop innovative products to grow their enterprises.For instance, seasoned experts who discover innovative treatment protocols for specific diseases in clinical practice may choose to launch startups independently or partner with entrepreneurs to develop safer and more effective innovative products for market release. Additionally, clinicians can collaborate with overseas companies or experts to introduce validated innovative technologies into the Chinese market.

Second, physicians can sell innovative solutions to other enterprises or individuals through the commercialization of research outcomes or patent licensing., with large-scale production and promotion carried out by enterprises possessing stronger commercialization capabilities.

Third, physicians can serve as clinical experts to participate in product design for startups and guide their clinical trials.

Fourth, physicians can serve as expert advisors, providing recommendations for the clinical use and optimization of products.As the professionals most attuned to clinical needs, physicians can provide feedback based on their product usage experience, helping startups refine and optimize their products to enhance therapeutic efficacy. On the other hand, expert consultants can also assist companies in training physicians and promoting innovative surgical techniques, thereby enabling the treatment of more patients.

However, it must be noted that despite support from national policies, doctors’ entrepreneurial journeys remain fraught with challenges for various reasons. To date, only a small number of doctors in China have achieved successful entrepreneurship.

Overall,Challenges for Physicians Launching Startups in the Medical Device SectorMajorIncluding strategic decision-making, product selection, product positioning, building the corporate team, establishing company policies and employee incentive mechanisms, and early-stage financing, etc.。

First, in terms of innovative R&D, unlike overseas physicians with backgrounds in engineering education, the vast majority of doctors in China have studied medicine exclusively from university through their professional careers, resulting in limited familiarity with new materials and engineering technologies. Consequently, although domestic clinicians often generate numerous innovative ideas in practice, they are frequently uncertain about their feasibility and potential for engineering implementation.

Secondly, every step in the development of medical devices—from product selection, R&D, and design to type testing, clinical trials, and market commercialization—requires decisive action from founders, with each decision carrying inherent risks of failure. This places significant demands on entrepreneurs’ strategic vision, posing particular challenges for physicians who have primarily worked on the clinical frontline, are founding their first company, and lack experience in corporate operations and product commercialization.

Furthermore, entrepreneurs must also address a range of strategic decisions, such as building a corporate team, recruiting talent with complementary skills, and designing employee incentive schemes. Key considerations include formulating development plans, managing human resources, overseeing financial operations, establishing manufacturing facilities, implementing quality management systems, ensuring regulatory compliance and handling registration approvals, as well as conducting negotiations. For physicians, the myriad details involved in launching a business present entirely new challenges.

Finally, regarding funding, how should entrepreneurs raise capital? How can they identify suitable investment institutions? At what stage and in what proportion should equity be diluted? How should company valuation be determined? Entrepreneurs must also carefully consider these specialized questions.

It can be said that physicians embarking on entrepreneurship represent not only a shift in role but also the beginning of a new journey. Along this path, the majority are overwhelmed by difficulties, while only a small fraction achieve success.

Proxima Capital is a venture capital firm dedicated to innovative medical technologies. Since its establishment in late 2016, it has invested in and supported more than 20 innovative medical device companies, most of which have grown into leading enterprises in their respective niches. Over 80% of these portfolio companies possess globally first-in-class products, and more than 90% hold domestically first-in-class products, with over ten companies having initiated IPO applications.

Data from VCBeat’s industry financing database reveals that many companies backed by Proxima Capital have seen their valuations increase by 10–20 times or more over the past two years. Proxima Capital has established a strong reputation in the field of innovative medical devices. To this end, we conducted exclusive interviews with their core investment team specializing in this sector, as well as with physician-founders of their portfolio companies. Our aim is to distill practical insights that can benefit more physicians embarking on entrepreneurial ventures, and to encourage greater investor support for physician-led startups.

In response to the aforementioned challenges and dilemmas faced by physician entrepreneurs, Proxima Capital has gained its own insights and experience.

Li Zhe, Partner at Proxima Capital, stated, “From its inception, Proxima has clearly defined its ‘Focus on Major Unmet Clinical Needs, Discover Global Breakthrough Technological Innovations’fund style. Through preliminary exploration, the fund has identified a number of highly representative success stories of physician-founded startups, and summarized distinct entrepreneurial models exemplified by companies such as Bohui Ruijin Biotech, Ruidi Biotech, Weike Medical, and Tangji Medical.”

Sun Xiaolu, a partner at Proxima Capital, believes: “Compared to doctors who start businesses with only surgical experience,”Physicians with extensive scientific research experience and certain engineering technical capabilities are more likely to succeed in entrepreneurship.”

For example, Dr. Zhao Bo, founder of Bohui Ruijin Biotechnology, which received lead investment in its Series A round from Proxima Capital, is not only a former associate chief physician with extensive clinical surgical experience but also possesses strong scientific research and product development capabilities. His years of clinical practice have given him a profound understanding of clinical pain points and innovative needs, while his expertise in research and development has enabled him to create two innovative biomaterial technology platforms and develop dozens of products targeting a range of surgical indications. Among these, several products are first-of-their-kind devices either globally or within China. Sun Xiaolu, Partner at Proxima Capital, commented, “This portfolio of product innovations, closely aligned with clinical practice, is rare among startups in the biomaterials sector.”

Chen Xinhua, founder of Ruidi Bio and chief physician specializing in hepatobiliary and pancreatic diseases, is the lead investor in the angel round backed by Proxima Capital. She not only spearheaded the development of a next-generation pulsed electric field ablation technology platform—nanosecond pulse ablation—but also successfully applied this novel nanosecond pulse ablation technique to the treatment of liver cancer and pancreatic cancer. Currently, Ruidi Bio is conducting a multicenter registrational clinical trial for its nanosecond pulse ablation product, which represents the world’s first clinical trial applying nanosecond pulse technology to solid tumors.

Zuo Xingyu, founder of Hangzhou Tangji Medical Technology Co., Ltd., which received lead angel investment from Proxima Capital, previously served as a physician across multiple gastrointestinal departments. He possesses profound understanding of the functional status and motility dynamics at various stages of the gastrointestinal tract, developed a minimally invasive innovative platform for interventional treatment of metabolic diseases via the gastrointestinal tract, and implemented more than ten innovative designs and adjustments. Notably, with the support of several committee chairs, patient enrollment for the first indication—weight loss—of Tangji Medical’s innovative product is nearing completion in its registrational clinical trial.

I.To address the challenges of team building, Proxima Capital assists its portfolio companies in attracting top-tier talent, such as industry executives, by centering on physicians’ innovative concepts.According to reports, over the past two years, Proxima Capital has assisted its portfolio companies in recruiting more than 80 professionals for key positions, including nearly 40 senior executives.

Taking Weike Medical, which received lead investment in its angel round from Proxima Capital, as an example, its founder, Shang Xiaoke, is an associate chief physician in cardiac surgery. At the outset of the venture, Dr. Shang assembled a team with complementary strengths: as founder, he oversees overall strategy and clinical trials; co-founder Chen Song, formerly R&D Director at Shanghai Shape Memory Alloy Material Co., Ltd., where he led the development of China’s first-generation congenital heart disease occlusion system, serves as CTO of Weike Medical, responsible for product R&D; and co-founder Wang Xueli, who has held management positions at multiple medical device companies and brings extensive managerial experience, serves as General Manager, overseeing business operations.

Leveraging its core team integrating medical, engineering, and business expertise, Weike Medical rapidly completed the development of two products and established its facilities, manufacturing, quality, and regulatory systems. Within two years of its establishment, Weike Medical completed enrollment of all patients in the pivotal clinical trial for its first product, a patent foramen ovale (PFO) occluder for the treatment of cryptogenic stroke, and initiated the pivotal clinical trial for its second product, an atrial shunt device for the treatment of heart failure. Supported by a team with complementary strengths, Weike Medical has achieved rapid product advancement.

II.To address challenges in corporate strategy, new product design, and external partnerships, Proxima Capital, together with its industrialization team, actively assisted the founders in establishing product selection criteria, defining the direction for new product development, and charting a course for the company’s sustainable growth.

For example, after receiving investment from Proxima Capital, Bohui Ruijin’s founder and newly appointed executive team adjusted their new product design and selection strategies, establishing a comprehensive, scientifically grounded decision-making system for new product definition. This system not only addresses specific clinical needs but also fully considers multiple factors, including long-term market opportunities, the company’s long-term competitive edge, and sustainable development strategies. Additionally, while continuing to pursue independent R&D, Bohui Ruijin has actively sought collaborations with leading overseas technology teams.

For another example, with the support of investors, RayDi Bio has expanded its platform technology to address more major clinical indications, such as those in cardiology, at an opportune time. In addition to actively promoting the research, development, and application of products for weight management and type 2 diabetes, Tangji Medical is conducting scientific research and clinical trials in disease areas such as non-alcoholic steatohepatitis (NASH), and has developed a series of related products.

An analysis of successful cases of physician entrepreneurship backed by Proxima Capital reveals:Companies with Senior Industry Executives on Board Are More Likely to SucceedFor example, Li Xuejun, CMO of Bohui Ruijin, has 26 years of experience in medical device marketing and sales, having previously served as General Manager of the Surgical Business Unit at Covidien China (now acquired by Medtronic) and as CEO of Partel. Li Xiaotao, COO of Tangji Medical, is the former Vice President for Greater China and a member of the Management Committee at Boston Scientific. The COO of Ruidi Bio was formerly the General Manager of Hangzhou Batai and previously worked at Terumo; the Marketing Director of Ruidi Bio previously held a director position at Abbott. Senior executives at Weike Medical were formerly key personnel at well-known companies such as Bairen Medical, Nuosige Pharmaceutical, and Chia Tai Tianqing Pharmaceutical.

Overall, entrepreneurial ventures in innovative medical technologies involve multiple stages, including research and development, clinical trials, manufacturing, regulatory compliance, and commercialization. For physicians choosing to embark on entrepreneurship, each stage presents a significant challenge.。

In this regard, Sun Xiaolu, Partner at Proxima Capital, stated, “We are building an ecosystem for startups in innovative medical technologies. For instance, we are collaborating with Grade A tertiary hospitals to establish clinical translation trial sites and setting up accelerators in Suzhou that integrate laboratory and production facilities. Meanwhile, Proxima Capital has assembled a team of entrepreneurial support partners who provide experienced and effective assistance to startup teams in areas such as IP design, engineering development, clinical research, manufacturing, quality control, regulatory affairs, and commercialization, thereby making medical entrepreneurship easier, faster, and more likely to succeed.”

Proxima Capital is currently undertaking an innovative initiative: forming startup companies by bringing together 2–4 physicians who collaborate based on specific disease areas (such as heart failure, ophthalmology, etc.) or similar technological platform applications, integrating their respective innovative ideas. Proxima Capital assists in building professional teams, including roles such as CEO, R&D Director, Manufacturing Director, Quality Director, and Regulatory Affairs Director. Additionally, Proxima Capital provides manufacturing facilities at its Suzhou accelerator, and its entrepreneurial support partner team offers direct assistance during the early stages of company formation. By facilitating physicians’ joint ventures in this manner, Proxima Capital helps create a more robust product portfolio, secure greater financial backing, accelerate growth, and position these ventures for potential future IPOs.

As can be seen, Proxima Capital has accumulated successful experience in assisting physicians with entrepreneurship, developed innovative models, and gradually established an incubation support system to promote the industrialization of innovative medical technologies.

To support more physicians in successfully launching their ventures, VCBeat will continue to study successful cases of physician-led startups and share them through thematic articles, aiming to provide experience and reference for physicians aspiring to become entrepreneurs.