8 things to know when transitioning from researcher to founder

Going from researcher to founder is one of the most unintuitive transitions I have made. But it’s been an amazing journey. Here are my responses to the most common questions I hear from research students who want to start companies:

1/ How do I find a good idea to work on? You need a problem that is real and that you care about. One good way to find such a problem is to immerse yourself in that field. E.g. In my case I focused my ML research in pediatric care & on clinical collaborations there which led me to Ubenwa Health.

2/ I have an idea. How do I even start? The first thing on your mind should be how do I test as quickly as possible that my idea can be a business? You need to make an MVP (minimum viable product). In practice, it doesn’t have to be a product, but must answer that question.

3/ After MVP what next? There’s much to learn, in addition to the mindset shift. I recommend joining a good incubator program. You’ll be surrounded by coaches + founders + resources to help you sort out the business preliminaries. In Montreal, two great programs for AI founders are NEXT AI & CDL.

High quality VCs also tend to have great support for their founders. So if you feel you have something special, you could go straight to seeking capital from firms like Radical Ventures & AIX Ventures.

4/ Should I be the CEO or CTO? It should come down to: where will you be most useful to the company? Keep in mind that CEO is a generalist role, in contrast to the specialist mindset that likely brought you to a PhD in the first place.

5/ Should I stay in Canada or incorporate in the US? This should be a business decision. There was a time when US investors required you to have a US-domiciled company. That has changed significantly & investors freely write cheques across both sides of the border.

If you stayed a Canadian corp you also get to benefit from significant non-dilutive funding opportunities. E.g. IRAP, provincial programs, R & D tax credits, etc. Just note that these alone will not make you a successful company.

6/ Should I talk about my idea? Please do. The risk of someone stealing your idea is dramatically lower than the benefits – in most fields. Talking about your idea is an opportunity to dialogue, brainstorm & refine it. Ideas are cheap. It’s execution that makes a great company!

7/ Should I bootstrap or raise VC funding? First thing is there are several options in between these 2 extremes. Eg raising from family and friends, angel investors, family offices, etc. This can definitely be a larger discussion. For now my thoughts are: choose the path that allows you to sleep at night and to effectively pursue your mission.

8/ Can I run my company while doing my PhD? From personal experience I’d say avoid this if you can. Both are intense endeavors that require deep thinking 24/7 and commitment over many years. There will be a cost. But if you’re willing to accept the cost, go for it!