MARYLAND TECHNOLOGY DEVELOPMENT CORPORATION

ORIGIN & FUNCTIONS


The Maryland Technology Development Corporation (TEDCO) began in 1998 as the Maryland Science, Engineering, and Technology Development Corporation, a public instrumentality of the State, authorized by the General Assembly (Chapter 661, Acts of 1998). Effective July 1, 2000, the Corporation was renamed the Maryland Technology Development Corporation (Chapter 13, Acts of 2000).

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).


BOARD OF DIRECTORS

Governing the Maryland Technology Development Corporation is the Board of Directors. Formerly, it consisted of fifteen members. In July 2021, the number of members increased to nineteen. Fourteen of these are appointed to four-year terms by the Governor with Senate advice and consent, and two members each are chosen respectively by the Senate President and House Speaker. The Secretary of Commerce serves ex officio. The Board selects the Chair (Chapter 196, Acts of 2021; Code Economic Development Article, sec. 10-403).


CHIEF EXECUTIVE OFFICER

From 1998 to 2021, the Chief Executive Officer was called the Executive Director, and adopted the present title in July 2021 (Chapter 196, Acts of 2021).

The Chief Executive Officer oversees five divisions: Administration, Investment Funding, Marketing and Communications, Programs, and Tech Transfer.


INVESTMENT FUNDING

Under Investment Funding are three main units: Seed Investment Funds, Social Impact Funds, and the Maryland Venture Fund.

SEED INVESTMENT FUNDS
Seed Investment Funds originated as the Technology Commercialization Fund and reformed in November 2016 under its present name.

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 Commericialization Investment Fund.

SOCIAL IMPACT FUNDS
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 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
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).

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.


PROGRAMS

Originally, Programs began as Technology Transfer and Commercialization, but in 2019 became Operations and Programs. In March 2020, it was reorganized as Programs.

Programs is responsible for three main units: Entrepreneur and Ecosystem Empowerment, Federal Programs, and the Women Entrepreneur Leadership Program.


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.

MARYLAND INNOVATION INITIATIVE
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 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
The Maryland Stem Cell Research Fund was formed by the General Assembly in 2006 (Chapter 19, Acts of 2006).

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).

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