- What is B-a-MedFounder?
B-a-MedFounder is a new crowdfunding system for people who have bright ideas about creating new medical device related inventions and innovations. Requests for funding can start from as low as a few thousand Euros/US Dollars/British Pounds Sterling and continue up to much higher levels depending on the size or the stage of the project. Currently the upper limit for funding requests is set at 75,000 Euros / 100,000 US Dollars / 65,000 British Pounds Sterling.
- Why have you established B-a-MedFounder?
There is a huge untapped source of inventive persons who have ideas for medical devices but do not have the funds to realize them.
We observed that most of the people who have ideas about creating medical devices may not have the necessary funds to develop such ideas. They do not know whom to approach for funding. Thousands of excellent ideas remain at the level of a dream and never come to fruition. We founded B-a-MedFounder to provide the less experienced or even the sophisticated and experienced inventors a virtual showroom through which they can exhibit their inventions and create a web-based funding group to help turn their inventions into commercially valuable devices.
B-a-MedFounder was established, because we saw a genuine need to give any inventor the opportunity to come out with an idea on a new medical device project and seek the funds needed to realize such an idea. In today’s world, there is much more demand for capital than the amount supplied by classic VCs. Our aim is to help such projects find the necessary funds.
- Where is B-a-MedFounder located?
B-a-MedFounder is located In the Republic of Cyprus, which is a full member of the European Union.
- How does the B-a-MedFounder system work?
B-a-MedFounder does not have a closed inventors’ network. Anyone who has a good idea about creating a new medical device anywhere in the world is a natural candidate and member of the our global network.
Our intend is to build a capable and motivated open network of inventors, experts, donors, and medical device companies that are searching for new creative medical device ideas that have the potential to generate a consistent flow of novel medical products that can help people at large.
Our medical and technical experts will evaluate the inventions and innovations that you propose using a novel medical device idea screening method that we have developed.
In the B-a-MedFounder virtual showroom, both the inventors and the donors are in one room. You, as an inventor, do not have to look for a friend-of-a-friend who knows an Angel or a VC to invest in your project. You will not have to do endless and repetitive presentations. You prepare your presentation, send it to us. Once your project is found eligible, it will be displayed in our virtual showroom, and then anyone from anywhere around the world who has an interest in it will be able to review it and fund it.
Through B-a-MedFounder,you can seek relatively small sums of money in the early stages of your project. When your project reaches higher levels and becomes more mature, you can also look for larger sums of money.
- Do you offer crowdfunding services anywhere in the world?
Yes and No. B-a-MedFounder is an internet-based company registered in the Republic of Cyprus, which is a European Union member country. Apart from those based in the countries that do not permit crowdfunding, or those based in the countries which have certain PayPal transaction restrictions, almost anyone who has access to email, and who has an idea about creating a new medical device project can use our services.
- Who are the people that you expect to contact B-a-MedFounder?
Individual Inventors / Entrepreneurs
Anybody who has an idea about creating a medical device that could help patients, physicians, or any healthcare provider, may contact us, submit their idea and proposal, and apply for a listing in our virtual showroom.
Individuals who have friends or family members suffering from acute or chronic diseases or disabilities and wish to help them and others who suffer can donate their financial resources to inventive people who have ideas to help these patients. Anyone can be a donor.
Medical Device Companies as Donors
Large and small companies that want to support breakthrough technologies and futuristic ideas on medical devices can donate to projects presented in our virtual showroom.
- For how long will projects be displayed in the B-a-MedFounder virtual showroom?
Projects that have successfully passed the review process will be displayed in the B-a-MedFounder virtual showroom for a period of ninety days, which is referred to as the "active funding period". The deadline for making donations to a specific project, on the other hand, shall be referred to as the “funding target date”.
From the first day of the ninety-day active funding period, until the funding target date, projects will be shown under the “Projects Currently Being Funded” heading. Donors will be able to make pledges to projects throughout this time frame. The funding inception date will appear on each project page dedicated to a project. Two weeks before the end of the ninety-day active funding period, a banner will be added to the projects indicating that the active funding period is “Ending Soon”. The pitch, total value of pledged sums, and number of donors, will appear on the dedicated project page, as well.
- Will all the projects be displayed in the same B-a-MedFounder virtual showroom?
Our virtual showroom can be browsed through the selection of medical categories, such as surgery, orthopedics, urology, and so on. At the outset, users will be able to view a general virtual showroom where all projects will be listed together. However, by clicking on a medical category link on the side menu, users will also be able to see projects located within a specific medical category. Furthermore, there will be a virtual showroom dedicated to “Consumer Oriented” projects and a virtual show room for “Successful” projects; this is an area where projects that have successfully secured funding through B-a-MedFounder will be displayed.
- How are the initial funding target and the minimum funding threshold terms defined?
Each individual or a registered company that has a project that offers rewards for raising funds through B-a-MedFounder shall have an initial funding target (such as EUR 40,000), as well as a minimum funding threshold (75 percent of the initial funding target, for example, EUR 30,000). The initial funding target represents the amount of funds that are initially needed by the project owner to start or further develop the proposed project. The minimum funding threshold represents the minimum level of funding that a project needs to achieve before starting a project, until further funds will be required. (Please note that all numbers represent percentages or amounts before the B-a-MedFounder success fees and PayPal transaction fees are deducted from the funds that are raised).
- In which currencies can project owners request funding?
Project owners are asked to indicate their funding currency preference (Euros, U.S. Dollars, or British Pounds Sterling) when they submit their projects; such projects will be open for pledges from all countries except those that either have limitations on crowdfunding or restrictions regarding the use of PayPal’s services.
- Do donors and project owners have to use PayPal?
Yes. Donors are required to use their PayPal accounts to make a contribution to a project. Project owners are also required to have PayPal accounts in order to receive funds after the successful completion of a project’s funding. B-a-MedFounder has an arrangement with PayPal for the receipt and administration of pledges during a project’s funding period, as well as the disbursement of such pledges to the project owners at closing, assuming that the project reaches or exceeds its minimum funding threshold.
- What are the deductions made to the funds raised?
If 100 percent or more of a project’s initial funding target is reached, for up to EUR 95,000 in total pledged sums, only a 7 percent success fee is deducted by B-a-MedFounder, which excludes the PayPal transaction fees of 3.4 percent + EUR 0.35. The success fees are regressive with higher total pledged sums (please see next question).
The project owner receives the funds after we verify that all pledges made are registered in the relevant PayPal account and all necessary documents are complete. Before the pledged funds are disbursed to the project owner, the pre-fixed B-a-MedFounder success fees and PayPal transaction fees are deducted from the total pledged sum. The success fees will include the project submission fees paid by the project owner at the time the project was submitted to us. Such project submission fees are currently set at EUR 100.00.
** Please note that the project submission fee of EUR 100.00 is currently waived until the end of 2013. **
The project owner may also receive the funds if the total pledged sums reach 75-99 percent of the initial funding target bythe end of the ninety-day active funding period. In this case, project owners pay 10 percent as a success fee to us, excluding the PayPal transaction fees of 3.4 percent + EUR 0.35. The funds will be disbursed to the project owner after B-a-MedFounder verifies that all pledges made are registered in the relevant PayPal account and all necessary documents are complete.
Please also note that the success of an individual pledge’s conversion into a payment to the project owner depends on the availability of sufficient funds in a donor’s PayPal account.
- What is a regressive success fee?
In total pledged sums above EUR/USD/GBP 95,000, project owners pay regressive success fees assuming that 100 percent or more of their initial funding targets are reached.
- In total pledged sums of EUR 95,001 – 175,000: 6.5 percent + PayPal fees
- In total pledged sums of EUR 175,001 – 255,000: 6 percent + PayPal fees
- In total pledged sums of EUR 255,001 – 335,000: 5.5 percent + PayPal fees
- In total pledged sums of EUR 335,001 – 415,000: 5 percent + PayPal fees
- In total pledged sums of EUR 415,001 and more: 4.5 percent + PayPal fees
- Can the project owners meet personally or through the internet, such as Skype or Tango, with the reviewers (experts) or donors of a project?
Our project reviewers (experts) are anonymous.
A full list of donors with pledge details will be sent to the project owner after the successful closing of a project at the time the funds are released.
- Do project owners have to report the development status of their projects?
Project owners have an obligation to periodically report the status of their projects. They should prepare written quarterly reports and send them directly to their donors to let them know how their projects are evolving. These reports will not appear on our website. However, donors can write their opinions about project owners and project owners can update donors about the status of their projects through the project discussion and update boards even after a year from the funding target date.
- Define what a "reward" given in return for donations means.
A reward is an offer that the project owner guarantees to provide when an individual is confident enough to donate funds to his/her project.
- Are donation-based projects required to offer rewards?
Yes. Sending creative rewards to supporting donors is essential to show the appreciation of the project owner.
- What items are prohibited as rewards?
Financial incentives, "prescription-only” medical devices, returns or payments, raffles, lotteries and sweepstakes, coupons, discounts and gift certificates, alcohol, tobacco, drugs, and any kind of pornographic materials are not allowed to be given as rewards.