All MedTech Terms
380 sourced definitions covering the regulatory, quality, software, and cybersecurity vocabulary of modern medical devices.
Showing 1–24 of 28
Anti-Dilution Protection
Adjustment that protects investors if the company raises a future round at a lower price.
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.
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.
Down Round
Financing at a lower per-share price than the previous round.
Due Diligence
Investigation of a company before an investment, financing, or acquisition.
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.
Liquidation Preference
Right of preferred shareholders to be paid before common in an exit.
Milestone Payment
Contingent payment triggered by a defined event in a partnership, M&A, or financing.
Milestone-Based Tranche
Investment paid in installments triggered by predefined milestones.
Non-Dilutive Funding
Capital that does not require giving up equity, such as grants or debt.
Post-Money Valuation
Company valuation immediately after a financing closes.
Pre-Money Valuation
Company valuation immediately before new money is invested.
Preferred Stock
Class of equity with rights superior to common stock.
Pro-Rata Rights
Right of an existing investor to maintain ownership percentage in future rounds.
Runway
Months of operating cash a company has before running out.
SBIR / STTR Grants(SBIR/STTR)
U.S. federal small-business R&D grants from agencies including NIH and DoD.
Simple Agreement for Future Equity(SAFE)
Convertible instrument that converts to equity at a future priced round.
Strategic Investor
Corporate investor with operational, not just financial, motives.
Term Sheet
Non-binding outline of the key economic and control terms of an investment.