The Corporation helps businesses get started and grow through the commercialization of technology developed in Maryland by university researchers, the private sector, and federal laboratories. Throughout all regions of the State, the Corporation seeks to create and sustain business, and create jobs in technology-related industry.
In June 2019, the Corporation adopted regulations for establishing an investment committee, and also was authorized to appoint an advisory committee (Chapters 487 & 488, Acts of 2019).
The Chief Executive Officer oversees the Cyber Maryland Program, and five divisions: Development and Marketing; Federal Engagement; Finance and Operations; Investment Funding; and Tech Transfer.
GOVERNMENT RELATIONS & POLICY
On behalf of the Corporation, Government Relations and Policy serves as the primary contact with federal, State and local governments.
The Program creates and executes a talent pipeline that is to materially reduces workforce vacancies by July 1, 2026; serves as a one-stop shop for employers seeking to leverage cyber workforce development programs offered by the State and its partners; and informs cybersecurity training and education programs operated by public or private entities with industry-driven needs. The Program's charge also is to build the most advanced local and State information technology workforce in the nation, which, to the maximum extent possible, reflects the racial, gender, ethnic and geographic diversity of the State; coordinate and accelerate cybersecurity research and innovation in the State; and support the efforts of the Department of Information Technology to improve State government's cybersecurity posture, including that for State agencies, local governments, and critical infrastructure. In addition, the Program administers and manages the Cyber Maryland Fund (Code Economic Development Article, sec. 10-496).
For the development of the statewide cybersecurity workforce development strategic plan, the Board advises and supports the Program. The Board also assists the Executive Director and Program staff with stakeholder outreach and engagement; and helps the Executive Director explore synergies with cybersecurity workforce development efforts by regional and county workforce development agencies and organizations.
Seventeen members constitute the Board. Nine are appointed by the Governor. Eight members serve ex officio. The Board chooses the Chair (Code Economic Development Article, sec. 10-496).
Administration, finance, operations, and data and IT management are overseen by Finance and Operations.
In 2023, Finance and Operations added the following programs to manage: Entrepreneur and Ecosystem Empowerment, Rural Business Innovation Initiative, Urban Business Innovation Initiative, and the Women Entrepreneurs Leadership Programs.
SEED INVESTMENT FUNDS
The program was launched to provide "seed money" to early-stage technology companies that are economically viable but have not yet attracted venture capital investment. The Corporation helps these companies raise additional funding from federal government grants, private investors, and product sales.
Seed Investment Funds is responsible for four funds: the Cybersecurity Investment Fund, the Gap Investment Fund, the Life Sciences Investment Fund, and the Technology Commercialization Investment Fund.
SOCIAL IMPACT FUNDS
The Builder Fund originated in 2018 to provide financial and operational support in the development of start-up companies run by entrepreneurs with a socially or economically disadvantaged background that hinders access to traditional forms of capital and executive networks.
MARYLAND VENTURE FUND
Direct investment in Maryland companies is provided by the Maryland Venture Fund through Challenge Investment; Enterprise Investment; and Enterprise Venture-Capital Limited Partnership (Code Economic Development Article, secs. 6-501 through 6-529).
Challenge Investment Program. The Program initially may invest $50,000 as "seed money" in a technology-driven Maryland company. Matched with $50,000 from a co-investor, the Program provides a new business with $100,000 in capital. As the new business progresses and attains certain milestones, Venture Capital may authorize up to two increments of $25,000. The investment is to be repaid over a ten-year period. A Challenge recipient must keep its principal place of business in Maryland for three years. After two years, the business should have at least the potential to be considered for a direct equity investment from the Enterprise Investment Fund. Since FY1993, the Program has made 80 investments, totalling $4.35 million. Although the Program's investments are all start-up financing with higher risks, 75 percent of recipients are still in business, and ten recipients have qualified for direct equity investment from the Enterprise Investment Fund.
Enterprise Investment Fund. Created in late 1993, the Fund enables the Maryland Technology Development Corporation to make direct equity investments (i.e., buy stock) in "early-stage" technology-driven businesses in Maryland. Investments range from $150,000 to $500,000. The decision to invest is based on the potential return, the range of economic development, and the number of jobs that will be created. Requiring a three-to-one co-investor match, the Fund has invested $11 million in 32 firms since FY1993.
Enterprise Venture Capital Limited Partnership Fund. Since FY1995, the Enterprise Investment Fund has invested in six private sector Venture Capital Limited Partnerships to encourage private investment in early stage, high technology Maryland-based firms.
The Authority oversees both the certification and selection of venture firms to receive capital raised from insurance companies, and the use of capital by the selected venture firms. The Authority also advises and consults with the Maryland Technology Development Corporation concerning the InvestMaryland Program whereby insurance companies receive tax credits for contributing to certain agency funds. The Program provides funding to spur growth and innovation through venture capital investment.
At least quarterly, the Authority meets to review the Corporation’s investment policies, investment decisions, and adherence to the Corporation's statutory and regulatory requirements.
Nine members constitute the Authority. Seven are appointed by the Governor, one by the Senate President, and one by the House Speaker. The Governor chooses the Chair (Code Economic Development Article, secs. 10-473 through 10-478).
The Equitech Growth Commission is to create a strategic plan and long-term goals for growing Maryland's innovation economy. With public-private collaboration, the plan is to attract and retain a skilled workforce and high-growth businesses. It will include mechanisms to increase the participation of communities in the innovation economy, create pathways for high-paying jobs, and increase and expand wealth in minority communities.
Twenty-three members constitute the Commission. Nine are appointed by the Governor, three by the Senate President, and three by the House Speaker. Eight members serve ex officio (Code State Finance & Procurement Article, sec. 6-226).
MARYLAND INNOVATION INITIATIVE
The Initiative promotes the commercialization of research conducted in universities in the State. It encourages qualifying universities to partner with each other and with federal laboratories located in Maryland on commercialization and other activities. The Initiative also works to facilitate the transfer of technology from universities to commercial industries.
MARYLAND STEM CELL RESEARCH FUND
Through grants and loans to public and private entities in Maryland, the Maryland Stem Cell Research Fund promotes stem cell research leading to prevention of and medical treatments for human diseases. The Fund receives appropriations through the State budget and may accept money from any other source for the benefit of the Fund (Code Economic Development Article, sec. 10-434).
The Maryland Stem Cell Research Commission develops regulations to ensure that stem cell research, financed by the Maryland Stem Cell Research Fund, complies with State law. Moreover, the Commission establishes guidelines, criteria, and procedures for the review, evaluation, and award of grants and loans from the Fund (Code Economic Development Article, secs. 10-431 through 10-442).
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Seed Investment Funds originated as the Technology Commercialization Fund and reformed in November 2016 under its present name.
LIFE SCIENCES INVESTMENT FUND
The Life Science Investment Fund (LSIF) helps Maryland companies develop products for human health that require approval from the U.S. Food and Drug Administration for commercialization. The Fund makes investments to help companies reach critical
milestones early in their product development; increases their valuation; and better positions companies for follow-up investment, product commercialization, and job creation.
In 2021, Social Impact Funds was created to encompass the Builder Fund and Inclusion Fund, which engage and invest in economically disadvantaged founders and communities.
The Maryland Venture Fund originally formed within the Department of Business and Economic Development as the Investment Financing Group in 1995. Formerly under the Department's Division of Financing Programs, the Maryland Venture Fund transferred to Technology Strategy and Business Development in December 2003, and reformed as Venture Capital under the Deputy Secretary of Business and Economic Development in 2005. It further restructured in July 2009 under the Office of Finance Programs, and in July 2012 moved to the Office of Secretary of Business and Economic Development. In October 2015, the Fund was made part of the Maryland Technology Development Corporation (Chapter 141, Acts of 2015).
MARYLAND VENTURE FUND AUTHORITY
The Maryland Venture Fund Authority was created by the General Assembly within the Department of Business and Economic Development in July 2011 (Chapter 409, Acts of 2011). In October 2015, the Authority transferred to the Maryland Technology Development Corporation (Chapter 141, Acts of 2015).
TECH TRANSFER
Tech Transfer moves innovations from research labs to commercial sectors in order to create business ventures, and make new products available to the public.
EQUITECH GROWTH COMMISSION
Within the Maryland Technology Development Corporation, the Equitech Growth Commission was authorized by the General Assembly in July 2023 (Chapter 461, Acts of 2023).
Within the Maryland Technology Development Corporation, the Maryland Innovation Initiative was created by the General Assembly in July 2012 (Chapter 450, Acts of 2012).
The Maryland Stem Cell Research Fund was formed by the General Assembly in 2006 (Chapter 19, Acts of 2006).
MARYLAND STEM CELL RESEARCH COMMISSION
As an independent entity within the Maryland Technology Development Corporation, the Maryland Stem Cell Research Commission was established by the General Assembly in 2006 (Chapter 19, Acts of 2006).
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