Non-dilutive funding includes government grants (NIH SBIR/STTR, BARDA, ARPA-H), foundation grants, venture debt, revenue-based financing, and strategic milestone payments - capital that does not require issuing equity. Sources include government grants, foundation awards, contracts, prize competitions and some tax credits. Funding usually comes with reporting and use restrictions, and some programs claim rights to inventions. Non-dilutive money can extend runway and validate technology before an equity raise.

Why it matters

SBIR Phase I/II grants are a common MedTech bridge from idea to first equity round. Venture debt typically arrives after a Series B and extends runway with minimal dilution.

Common pitfalls

•Confusing non-dilutive funding with a lack of financial oversight, as all financial activities within a MedTech company are subject to scrutiny during audits.
•Underestimating the administrative burden and reporting requirements associated with government grants, which can divert resources from core MedTech development activities.
•Failing to allocate non-dilutive funds appropriately to ensure compliance with quality system requirements (e.g., ISO 13485) throughout the product lifecycle.
•Assuming that non-dilutive funding implies less scrutiny on the scientific or technical merit of the MedTech innovation, as these funds often have rigorous review processes.

Sources

NIH SBIR/STTR · NIH
Silicon Valley Bank - Healthcare Reports · SVB
PitchBook - MedTech Coverage · PitchBook
SEC Roadmap to Funding a Small Business: non-dilutive capital · SEC

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Why compare MedTech terms side by side?

MedTech terminology is full of pairs that look interchangeable but carry very different regulatory, clinical, and commercial consequences. Picking the wrong framework, pathway, or standard early in a project can add months to a submission, invalidate clinical evidence, or trigger an audit finding. Side-by-side comparison is the fastest way to surface those differences before they become costly mistakes.

Each comparison on this page pulls from the same vendor-neutral, sourced definitions used throughout the MedTech Terms glossary. You see the one-line summary, the formal definition, why it matters in practice, common pitfalls, and the primary sources (FDA guidance, EU MDR/IVDR articles, ISO/IEC standards, MDCG documents, IMDRF principles) that back each entry. That makes the comparison defensible in regulatory strategy memos, design reviews, and submission narratives.

Common comparison patterns

Regulatory pathway choice - 510(k) vs PMA, 510(k) vs De Novo, Abbreviated vs Special 510(k).
Quality systems - QSR vs ISO 13485, QMSR vs QSR.
Software classification - SaMD vs SiMD, Locked vs adaptive AI.
EU frameworks - MDR vs IVDR, CE Mark vs UKCA.
Cybersecurity artifacts - SPDX vs CycloneDX SBOM, CVE vs CVSS.
Post-market actions - Recall vs field action, Removal vs correction.

How to use this tool

Pick term A and term B from the dropdowns, or click a preset above. The URL updates with both slugs so you can bookmark or share the exact comparison with a colleague, a notified body reviewer, or your regulatory consultant. Click Open full page on either side for the complete entry, including FAQs, related terms, and the full citation list. If you are not sure which term to start with, browse the Categories view or the A-Z index.

MedTech Terms is a vendor-neutral community resource sponsored by Blue Goat Cyber. Definitions are written for educational use and are not legal or regulatory advice.