Maryland Venture Fund

A state-funded seed and early-stage equity fund; an evergreen fund that receives annual allocations from the Maryland State Legislature.  The Fund makes direct investments in technology and life science companies and indirect investments in venture capital funds.  Approximately 60 percent of the Fund is invested in technology companies in the areas of software, communications, and IT security, and 40 percent of the Fund is invested in life sciences companies in the areas of therapeutics, medical devices, and diagnostics.

Challenge Investment Program
Provides financing for seed-stage companies to cover a portion of the initial costs associated with bringing new products to market.  Initial investments of $50,000 to $100,000 are made with incremental investments to a maximum of $150,000.  These incremental investments are awarded based upon the client’s performance and the client’s ability to achieve milestones set by the Maryland Venture Fund at the time of the initial closing.

Requirements:

• The business must have no more than 25 employees and annual sales of less than $1 million.
• A minimum 1:1 co-investor match is required.
• Applicants are limited to high tech companies whose principal place of business is located in Maryland.
• The company must remain in Maryland for at least three years.
• The company must be positioned for additional Venture Capital.

Enterprise Investment Fund Program
Makes direct equity investments in emerging technology companies, usually at the first round of institutional financing and works with emerging companies to move them into their next stage of development as a viable business. The amount of investment ranges from $150,000 to $500,000. Enterprise investments are generally in the form of equity, but follow the terms of the lead investor.

Requirements:

• Applicants must be in a technology industry.  Areas of technology include  life sciences–therapeutics, medical devices and diagnostics and information technology–software, communications and IT security
• The applicant must agree to maintain its principal place of business in Maryland for five years
• A minimum 3:1 match by a sophisticated investor is required.