Medical Devices

yellow rocket clip art

Medical Devices Startup Launch Terms

Startups commercializing medical devices, imaging tools, or sensor-based systems that require FDA review or operate within a regulated medical pathway. This category includes hardware-based devices, software-connected devices, point-of-care diagnostics, molecular or biological assays, imaging technologies, and any product that performs clinical measurement, detection, diagnosis, monitoring, or therapeutic support.

The value in this category resides in the device’s or diagnostic technology’s ability to perform regulated clinical functions—such as detection, measurement, imaging, monitoring, or therapeutic support—through specialized hardware, sensors, biological analysis, or clinically validated algorithms. Commercial value is driven by the product’s safety, accuracy, regulatory clearance, and validated clinical performance, rather than software delivery mechanisms or unregulated content.

Launch Term

Requirements

Equity
 		5% equity at the founder’s round. Anti-dilution through series A (defined as a priced fundraising round for preferred equity with more than $3M in new funding).
Annual License Payments
 
  • $0: Year 1
  • $10,000: Years 2 - 4
  • $20,000: Years 5 – 6
  • $40,000 Years 7+ 
Royalty (based on cumulative revenue)
 
  • 1%: Less than $5 Million in revenue
  • 1.5%: $5 Million to $50 Million
  • 2%: Greater than $50 Million 
Annual Minimum Royalty Payments until first commercial sale
 
  • Years 2 - 5; $10,000
  • Years 5+; $25,000
Sublicense Revenue Share
 
  • 40% (Pre-Series A)
  • 20% (Post-Series A) 
Patent Expense Reimbursement
 
  • Two year deferment for past patent expenses.  
  • On-going International expenses prepaid.
  • On-going US patent expenses paid as incurred. 
Diligence Milestone
  • Raise at least $1 million in capital funding in 3 years.
  • First commercial sale of licensed product:
    • Class 1 device – 5 years
    • Class 2 device – 7 years
    • Class 3 device – 10 years
  • Other milestones as warranted

Access startup tools, grants, incubators, and mentorship through the Venture Center.