Physical Sciences and Engineering

Physical Sciences and Engineering Startup Launch Terms

Startups commercializing innovations in materials science, electronics, energy systems, robotics, advanced manufacturing, chemical processes, mechanical or electrical engineering, or other hardware-based technologies that do not require a medical regulatory pathway. These products typically involve physical devices, engineered systems, specialized instrumentation, or manufacturing technologies intended for industrial, commercial, or consumer use.

The value in this category resides in the physical, chemical, or engineered innovation itself — including novel materials, devices, manufacturing processes, energy systems, robotics, or instrumentation that enable new functionality, performance improvements, or cost efficiencies. Commercial value is driven by the product’s technical capabilities, validated performance, and scalability in industrial or commercial environments, rather than software-only functionality or clinical regulatory pathways.

Launch Term	Requirements
Equity	3.5% equity at the founder’s round. Anti-dilution through series A (defined as a priced fundraising round for preferred equity with more than $1M in new funding)
Annual License Payments	$0: Year 1 $5,000: Years 2 - 4 $10,000: Years 5 – 6 $30,000 Years 7+
Royalty (based on cumulative revenue)	1%: Less than $5 Million in revenue 1.5%: $5 Million to $20 Million 2%: Greater than $20 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 in 10 years. Other milestones as warranted.

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