Chicago tech hub mHUB is expanding its accelerator program offerings with a new initiative focused on med-tech.
mHUB announced this week that it's launching an accelerator program for medical device startups that have "the potential to transform health care." The program expects to launch in the fourth quarter of this year, with applications opening this summer.
It's the second accelerator from mHUB, which earlier this year launched a program for smart manufacturing startups. mHUB plans to eventually launch six separate accelerator programs for hardware startups focused on a range of different industries, mHUB chief experience officer Melissa Lederer told me.
With the med-tech accelerator, mHUB will invest around $130,000 in eight to 10 startups for 5% equity. The investment includes $75,000 in cash, with the rest coming in services like access to components and parts, as well as design services. The six-month accelerator will also include help with product development and prototyping, business development, leadership training and access to the program's corporate partners, Baxter and Edward-Elmhurst Health Venture Capital.
The program fills a particular need for device startups that often find a hard time fundraising at the earlier stages, Lederer said.
"In hardware, there’s a real lack of early-stage dollars pre-Series A," she said.
Funding comes via mHUB's $15 million venture fund, which is currently being raised.
The program will involve a national search for medical device startups to participate. Lederer said Chicago is the "perfect place" for such an accelerator program, given the city's top health care systems, manufacturing strengths, and talent pool.
"If you look at all of those pieces, those are the pieces that these types of startups need to be successful," she said. "Chicago is unique in that way and we can tap into all of those different audiences to surround them with what they need to be successful."
Launched in 2017, mHUB is a space for Chicago's hardware entrepreneurs to design and build their products. It includes an electronics lab, CNC cutting, laser cutting, 3D printing, metal fabrication, testing lab, wood shop and more equipment hardware founders need to launch their products. It's located in a 63,000-square-foot space on Chicago's West Side, which was once home to Motorola.
