Frequently asked questions

Dianna Lesage puts it well: “Startup Studios transform unique ideas into strong independent companies. These entities don’t run programs as accelerators do and they don’t have cohorts like incubators do. The secret sauce of a Startup Studio (also called a Venture Builder or a Startup Factory) is the way they work on startup ideas. They do this by finding or developing great ideas, using technology and funding to build MVPs, and going through the process of validating these MVPs in the real world.”

If all goes well, the Studio spins off the new venture — recruiting a team to run it as an independent startup, handing off, and getting back to work on the next idea. Instead of using financial and physical resources to help entrepreneurs accelerate ideas, a Startup Studio uses its own internal team to do it.

MDC uses the studio model to enable inventors to bring their ideas to us at the earliest stage — sometimes on a napkin (really). We work with the inventor to clarify the idea and to assess its value for patient care, its potential in the marketplace, the challenges to creating a working model, funding the development, and the regulatory pathway.

If the idea passes the screening process, MDC will form a company with the inventor and actively help to secure early-stage funding, generally from federal or state government grants. We support the companies in raising capital from investors, generally angel investors. The company becomes a client company and MDC takes an equity position in it.

This depends on the level of development of the company. For an inventor who just has an idea, MDC will help assess the potential: Will it impact healthcare? Can it be built? Who would buy it? How big is the market? How can development be funded, and by whom? Will FDA clearance be required? How long will this take, and how much will it cost? Is the inventor committed to the project? That last question is a key factor in the decision to accept a new technology into the program. MDC partners with inventors to develop their idea.

If the screening process indicates a likelihood of success, MDC will negotiate with the inventor to set up a company and to seek funding. MDC will talk with investors, help identify funding opportunities, and help write proposals. MDC companies have won about $13M in contract and grant funding, including five Phase I SBIR grants from the National Science Foundation. Altogether, MDC has helped its client companies raise over $15,000,000 in contracts, grants and investments.

MDC will loan employees to the company as needed to make progress, and sometimes those employees become permanent staff. We provide space at little or no cost to companies created in the Studio. We are patient, and will help a company pivot to a more promising direction. Where appropriate, we support the company in programs like I-Corps, providing the required PI, entrepreneurial lead, and mentors.

For companies that are already formed, MDC provides space at modest cost and back-office services such as payroll, benefits management and tax preparation. Most importantly, MDC provides engineering and business development support from experienced developers and mentors, and an environment of other new companies that share information and problem-solving techniques.

See For Entrepreneurs for more.

MDC is working with 12 companies, most of which are resident in the MDC offices.

MDC's first company, Next Step Robotics, graduated from the Studio in 2021, moving to offices in the University of Maryland BioPark, where they are able to treat stroke victims.

We have screened dozens of technologies and met with many talented inventors and entrepreneurs. We are always in active discussions. Maryland is rich in ideas and innovation — perhaps the richest untapped innovation hub in the country.

We are always interested in meeting inventors and learning about their ideas. Contact us to set up a call or meeting, and see For Entrepreneurs for more information.

One way is to invest in the MDC-Verte Fund. This fund invests in MDC client companies and other medtech companies located in Opportunity Zones, which conveys certain tax advantages, such as the deferral of capital gains taxes.

The second way is to invest directly in the client companies. To date MDC clients have received about $3M in angel investments. All members of the MDC Studio portfolio are interested in talking to investors. Next Step Robotics is raising a Series A round ($2–5M), and Sonosa Medical and Surgical Vision Systems are raising seed rounds (~$1–2M). Other members of the portfolio are at an earlier stage and would benefit from investments in the $100–500K range.

Visit the investors page for a listing of companies and their opportunities, or contact us for details.