The Life Science Investment Fund (LSIF)
The Life Science Investment Fund (LSIF) exists to meet the needs of Maryland companies developing products addressing human health that require approval from the U.S. Food and Drug Administration (FDA) for commercialization. The LSIF program helps to move products along this pathway by making investments that will enable companies to reach critical milestones early in their product development efforts, to increase the company’s valuation, and to better position the company for follow-on investment, product commercialization, and job creation.
There are three main eligibility requirements for a LSIF investment. It is critical to check with the Request for Applications (RFA) prior to initiating an application.
1. The company must be a for-profit entity located in Maryland with fewer than 16 FTE (Full-Time Equivalent) employees.
2. The company is pre-revenue or has received less than an aggregate of $1,000,000 in equity investments from ‘Accredited’ investors (as defined in Rule 501 Reg. D).
3. The company is developing a product (i) that requires FDA approval through the New Drug Application (NDA) or Biologic License Application (BLA) pathway, e.g., drugs, vaccines, biologics, etc., or (ii) that is defined by the FDA as a Class II or Class III medical device requiring approval through the 510(k) or Pre-Market Approval (PMA) pathways, e.g., medical devices, diagnostics, etc. (hereinafter a “Medical Product”).
TEDCO will make investments of up to $200,000 for a period of 1 year through the LSIF program to support milestone-based projects that advance a Medical Product toward commercialization. Investments are made in the form of a five-year, convertible note to the company. Interest will accrue on the note at a rate of 8% per annum (see RFA for details). The LSIF program requires a minimum 50% match for each TEDCO dollar invested in the First Investment. This match must be provided in the form of cash. The Company Match description must include information on the source and availability of the matching funds.
Click here to learn how Montgomery County’s Life Sciences IMPACT Grant Program can help with your company match.
Applications for LSIF investment can be submitted to TEDCO two times each year. Applications are accepted on a rolling basis. Prior to submitting an application through TEDCO’s web portal, companies must set-up an account in the system.