Gap Investment Fund

Purpose

TEDCO has a long history of supporting the commercialization of technology from proof-of-concept studies through its university and federal laboratory technology transfer programs to seed-stage investments through its Seed Investment Funds.  More recently, the Maryland Venture Fund was moved to TEDCO giving the organization the ability to also make early-stage venture investments.  While together these resources provide a strong continuum of funding from product concept to scaling a company, there still remains a funding gap for companies that need to acquire customers and find themselves between a Seed Investment (technology and market validation) and a Venture Investment (scaling a business).  To address this need, TEDCO has established the Gap Investment Fund.

The Gap Investment Fund, which was approved by Governor Hogan in his FY2018 budget, will become available on July 1, 2017.  The Fund will address this critical gap in capital, which often comes when companies are most vulnerable to leaving Maryland for investments from other states.  The Gap Investment Fund will help retain these Maryland companies, many of which have already taken advantage of Maryland’s various seed and pre-seed funding resources.

Investment Focus

Gap Investments of up to $500,000 will be made through the fund to help companies solidify strategic partnerships or gain customer traction.  Companies seeking Gap Investments will be required to secure concurrently a matching investment from other accredited or institutional investors.  Funds from a Gap Investment will need to be used for new hires, which will help the company to grow and become more established in Maryland.

TEDCO is seeking innovative, technology-based, and highly-scalable companies that are likely to be ready for a venture investment 12 – 18 months following a Gap Investment.  Competition for the limited Gap Investment Funds is anticipated to be strong, so the selection process will be very competitive.  TEDCO anticipates making two investments in its first 12 months, but hopes to have the ability to make up to 10 investments in subsequent years.

Applying for a Gap Investment

TEDCO will post additional details about the application and review process before June 1, 2017.

Contact

Stephen Auvil
Senior Vice President
Technology Transfer & Commercialization
sauvil@tedco.md