Profession-Owned Software Companies: A New Era of Collaboration and Empowerment

A few months ago, I formalized some of my thinking about how the next generation of companies gets built and published it as "I'm investing in Profession-Owned Software Companies. Here's why."

In just the last several weeks since then, we're seeing a dramatic shift in the way software gets built, and as the barriers to building software get lower than ever before, I believe POSCs can serve as a way for professions to not only steel themselves against automation but ensure they benefit from it.

The Rise of Profession-Owned Software Companies

The rise of Profession-Owned Software Companies (POSCs) marks a significant turning point in the way professionals across various industries engage with and shape the software that powers their work. POSCs are built by professionals for professionals, ensuring that the software is tailored to the unique needs and challenges of their respective industries. By giving professionals a say in the development process and offering them equity in the company, POSCs create a more equitable financial landscape for all.

Real-World Examples: Doximity and Beyond

One example of a proto-POSC is Doximity , which gave substantial equity to its physician advisors and early allocation in their IPO. By involving professionals from the outset and rewarding them with equity, Doximity demonstrated a commitment to empowering its users and fostering a sense of ownership within the platform. Other companies can follow this model, creating a win-win situation for professionals who contribute to the platform's development and success.

Expanding the POSC Movement

As more professionals and entrepreneurs recognize the value of involving users in the development and ownership of software solutions, we can expect to see an increase in such cases, further strengthening the POSC movement. This growing trend will likely lead to the emergence of more POSCs across various industries, each addressing unique challenges and providing tailored solutions for their respective professionals.

As the founder of Andwise , a POSC focused on US physicians, I've been able to try out and validate many of the ideas described here and in my initial post introducing the POSC concept.

Embracing the Future: Harnessing the Power of Emerging Technologies

As technologies like GPT-4 continue to emerge, the barriers to software development are being lowered, enabling professionals to create and implement their own customized solutions more efficiently than ever before. This technological shift further empowers POSCs, allowing them to develop industry-specific tools and platforms more quickly and effectively.

The Impact on Industries

The growing accessibility of advanced technologies has the potential to revolutionize the way professionals interact with software in their industries. With the ability to create bespoke solutions that address distinct challenges, POSCs can foster increased collaboration and innovation, ultimately benefiting both the professionals themselves and their industries as a whole.

Building Collaborative Networks and Knowledge Sharing

A key advantage of POSCs lies in their capacity to establish and nurture networks of professionals who can collaborate, share expertise, and learn from one another. By cultivating a community of like-minded individuals, POSCs encourage knowledge sharing and drive innovation within their respective domains. This collaborative approach enables professionals to combine their resources and problem-solving skills, resulting in more effective and efficient software solutions.

The Future of Profession-Owned Software Companies

If the POSC movement continues to gain momentum, we can expect to see more professionals and entrepreneurs recognizing the value of owning and developing their own software solutions. This shift in mindset will likely lead to an increase in the number of POSCs and inspire even greater advancements in technology and industry-specific applications.

Ultimately, the success of Profession-Owned Software Companies will depend on the willingness of professionals to join forces, embrace new technologies, and share their knowledge and expertise. If this collaborative spirit continues to grow, I believe the POSC movement will usher in a new era of innovation, empowerment, and transformation for professionals and industries alike.

With the potential to reshape industries, improve working conditions, enhance financial inclusion and protection, and more, Profession-Owned Software Companies can grow into a force to be reckoned with. As more professionals embrace this movement, I think we can anticipate a brighter, more equitable, and prosperous future for all.