All MedTech Terms
513 sourced definitions covering the regulatory, quality, software, and cybersecurity vocabulary of modern medical devices.
Showing 1–24 of 47
409A Valuation
An independent fair-market-value appraisal of common stock used to set tax-compliant strike prices for employee stock options.
Anti-Dilution Protection
Adjustment that protects investors if the company raises a future round at a lower price.
Board of Directors
The governing body elected by stockholders that oversees management, approves major corporate actions, and typically includes investor-designated seats after venture financing.
Bridge Round
Interim financing between priced rounds, usually convertible.
Burn Rate
Rate at which a company spends cash, typically expressed monthly.
Burn Rate and Runway
Monthly net cash consumption (burn) and months of cash remaining (runway).
Capitalization Table(Cap Table)
Ledger of all securities issued by a company and who owns them.
Common Stock
The base class of equity typically held by founders and employees, standing last in the distribution waterfall behind creditors and preferred stockholders.
Convertible Note
Short-term debt that converts into equity at a future financing round.
Dilution
Reduction in existing shareholder ownership when new shares are issued.
Distribution Waterfall
The order in which sale or liquidation proceeds are paid out to creditors, preferred stockholders, and common stockholders based on liquidation preferences and conversion decisions.
Down Round
Financing at a lower per-share price than the previous round.
Drag-Along and Tag-Along Rights
Stockholder agreement provisions that compel minority holders to join a sale (drag) or entitle them to participate pro rata in a major holder's sale (tag).
Due Diligence
Investigation of a company before an investment, financing, or acquisition.
Earn-Out
Acquisition consideration paid contingently after closing based on achievement of agreed milestones (regulatory, revenue, or technical).
Employee Option Pool
Shares reserved for issuance to employees as stock options.
Exit Multiple
Valuation ratio applied at exit, e.g., enterprise value to revenue.
Fully Diluted Shares
The total share count assuming exercise or conversion of all outstanding options, warrants, convertible securities, and reserved but unissued option pool shares.
Initial Public Offering(IPO)
First sale of a company's stock to public investors via a registered SEC offering, typically on NYSE or Nasdaq.
Limited Partner / General Partner(LP / GP)
The two principal roles in a venture capital fund: LPs provide capital, GPs manage the fund and make investment decisions.
Liquidation Preference
Right of preferred shareholders to be paid before common in an exit.
Liquidity Event
Any transaction that converts illiquid private-company equity into cash or freely tradable securities, typically IPO, M&A, or secondary tender.
Lock-Up Period
A contractually specified period after an IPO or acquisition during which insiders and pre-existing stockholders are restricted from selling their shares.
Mergers and Acquisitions(M&A)
Transactions in which one company acquires or combines with another, the dominant MedTech exit path, typically a strategic acquisition by an established player.