Seed Investment Funds

On November 1, 2016 TEDCO launched the Seed Investment Funds. After careful consideration of feedback received from our recent market stakeholder survey, we’ve decided to transform our TCF and CIF Funding Programs into a single Seed Investment Fund. The new program  makes it easier than ever for Companies to seek Seed Funding from TEDCO. Apply Now

TEDCO Seed Funding 

  • No application deadlines!
  • An Executive Summary will initiate the application process.
  • More feedback and coaching.
  • Shorter Formal Application with simpler requirements.
  • Funds will be delivered in two tranches rather than four.

Purpose

TEDCO’s Seed Investments exist to support certain types of Maryland companies in their effort to develop and commercialize new technology-based products. TEDCO makes investments in these companies so they can reach a critical milestone in their product development efforts and advance their technologies further along the commercialization pathway, which will increase the company’s valuation and lead to follow-on investment, sustainability, and job creation.

Investment Focus

While most companies need funding, TEDCO’s Seed Investments were designed to meet a specific need in the market.  Companies with the following characteristics are targeted for investment:

Principal Place of Business in Maryland

  • This is an absolute requirement for funding.
  • See the TEDCO Policy for more details.

Small, seed-stage, for-profit company

  • Generally fewer than 20 employees
  • Less than 5 years old
  • Less than $1 million in qualified financing

Innovative, technology-based product addressing a critical need in a growing market

  • Company’s product incorporates a novel and proprietary technology that provides a competitive advantage and  prevents new companies from entering the same market with a similar product.
  • Technology must be beyond the concept stage – preliminary data should be available to show that the technology works as intended.

Potential for the company to grow and have an economic impact in Maryland

  • TEDCO is an economic development organization – we want to fund companies with the potential to grow the Maryland economy and create jobs.

Investment Information

TEDCO will make Seed Investments of up to $100,000 (or $200,000 for some life science companies. Details can be found HERE ) that advance a technology toward commercialization. The applicant company must provide a 50% match concurrent with TEDCO’s investment. This match can be in the form of cash or in-kind support. A description of the match must be included in the application, as described in the Executive Summary Outline.  More information about the investment mechanism, the closing process, and the terms associated with a Seed Investment can be found HERE

Applying for a Seed Investment

 It is easy to start the application process for a TEDCO Seed Investment.  Simply use TEDCO’s on-line submission system to complete a simple application form and attach a 2 page, investor friendly, executive summary.  Your executive summary will be reviewed in about a week.  If your business is a good fit for TEDCO’s Investment Focus, you will be contacted to set-up an initial meeting with members of TEDCO’s Deal Team to discuss your application.   

More information about the Full Review Process can be found HERE 

Evaluation Criteria

 Applications will be reviewed based on (i) how well the company matches the Investment Focus, (ii) how clearly and concisely the applicant addresses all of the items listed in the Application Outline, and (iii) the overall strength of the investment opportunity – associated risks and potential for an economic return.  Applicants should understand that TEDCO’s Seed Investment budget is limited on an annual basis.  Since there are more good companies applying for TEDCO’s investment than there are funds to invest, the selection process is very competitive — approximately 20% – 25% of applicants eventually receive an investment.  While a company could submit a strong application that meets all of the evaluation criteria, such a company might not receive an investment if there are other companies with stronger applications.  While TEDCO is not able to invest in all of the companies it sees, it strives to make the process rewarding for all of its applicants.  To this end, TEDCO is committed to providing constructive feedback to applicants and to directing them to other useful resources so applicants can improve their application, their business plan, and/or their probability of achieving success.

Contact

McKeever E. Conwell, II – (Mac) mconwell@tedco.md 410-715-4180

Angela Singleton asingleton@tedco.md 410-715-4188

Brian Corbett bcorbett@tedco.md 410-715-4165