Business

Nov. 15, 2013 11:00 am

Two new venture firms receive InvestMaryland funding

EnerTech Capital Partners and Foundation Medical Partners will receive $10 million and $7 million, respectively, to invest in cleantech and health IT companies.

Two new venture capital firms are receiving a portion each of the state’s $84 million InvestMaryland fund.

  • EnerTech Capital Partners, which invests in early-stage and mid-size cleantech companies, will receive $10 million to invest in Maryland-based companies.
  • Foundation Medical Partners, which invests in health IT companies, will receive $7 million to invest in Maryland-based companies.

“[T]he firms will return to the State’s general fund 100 percent of the principal and 80 percent of the proceeds from successful investments,” according to MDBizNews.

As Technical.ly Baltimore has reported, the $84 million InvestMaryland fund was signed into law in 2011 and raised in spring 2012 through the sale of insurance tax credits. Money from the fund is intended for early-stage startups, and is divvied up for investment among three groups:

  • Venture capital firms receive 67 percent.
  • The Maryland Venture Fund, the “state-funded and early-stage equity fund within” the state’s Department of Business and Economic Development, receives 24.75 percent, which is then invested into emerging companies in the state.
  • And 8.25 percent goes toward the Equity Participation Investment Program, “designed to expand business ownership by socially or economically disadvantaged entrepreneurs.”
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Andrew Zaleski

Andrew Zaleski is a freelance journalist in Philadelphia and the former lead reporter for Technical.ly Baltimore. Before moving to Philadelphia in June 2014, he was a contributing writer to Baltimore City Paper and a Tech Check commentator for WYPR 88.1 FM, Baltimore city’s National Public Radio affiliate. He has written for The Atlantic, Outside, Richmond magazine, Washington City Paper, Baltimore magazine, Baltimore Style magazine, Next City, Grist.org, The Atlantic Cities, and elsewhere.

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