Governor Hogan Announces Enhanced Funding for Startup Companies
Annapolis, Md. (May 26, 2015) – Governor Larry Hogan today announced enhanced funding opportunities for technology startup companies through the Maryland Technology Development Corporation (TEDCO). TEDCO’s Technology Commercialization Fund (TCF) and Cybersecurity Investment Fund (CIF) will now provide up to $225,000 to support projects that advance a technology toward commercialization in Maryland. In addition, TEDCO is broadening the scope of the TCF program by eliminating certain eligibility requirements. This change opens the door for more Maryland companies to participate in the program.
“Providing the right tools and resources to our entrepreneurs is critical to building a diverse economic foundation,” said Governor Hogan. “TEDCO’s funding programs fill the critical gap between the development phase and launch phase in the life of a startup company. The more financial support we can provide to our startups, the faster they will get to the commercial launch stage, and create jobs in communities all across Maryland.”
TEDCO’s TCF and CIF programs provide critical product development funding that enables companies at an early stage to achieve a significant milestone and better position the company for follow-on investment. The enhanced funding will be issued in the form of a new, second investment that follows the standard TCF/CIF investment. The standard initial investment of $100,000 will support projects that advance a technology toward commercialization. The second investment, which will be subject to concurrent qualified financing, will be in the amount of $125,000. This funding will support further development before startup companies are ready to launch a product, and it will create an incentive for other investment.
“In Maryland, we are committed to supporting innovators, which are the foundation of the startup ecosystem,” said DBED Secretary Mike Gill. “We want to make sure entrepreneurs have the right tools and resources at the right time to help them move further and lead to a sustainable growth.”
“Startups often require follow-on funding to support further development to generate revenues,” said Rob Rosenbaum, president and executive director of TEDCO. “TEDCO’s goal is to bridge this funding gap and help build successful companies to spur economic development in this region.”
TEDCO’s TCF funding program is created to help develop and commercialize new products being developed by early-stage, technology-based companies in Maryland. The CIF program is designed to help cybersecurity technology companies to advance their product development toward commercialization.
The application deadlines for the TCF and CIF are the 1st and 15th of each month, respectively. The review process for both programs is approximately two months. Interested companies are urged to review the Request for Applications (RFA) prior to initiating an application for either program (www.tedco.md). The enhanced funding will be available to all companies that closed on a TCF or CIF investment after November 1, 2014. More information on the renewed programs can be found at www.tedco.md/programs .
The Maryland Technology Development Corporation (TEDCO) is the go-to source for entrepreneurial support and guidance for start-ups and early-stage companies engaged in bringing innovative ideas to market. For more than a decade, the organization has provided funding, mentoring and networking opportunities to support Maryland’s innovation ecosystem. While founded by the Maryland General Assembly, TEDCO is an independent entity that makes seed/early-stage investments and manages private capital for angel and venture capital funds. It is frequently ranked as one of the most active seed/early-stage investors in the nation. The organization plays a key role in bringing research created in Maryland’s educational institutions and federal laboratories into the commercial marketplace. For more information on TEDCO and its programs and resources, visit www.TEDCO.md.