TEDCO has new money to close your startup's funding gap - Technical.ly Baltimore

Civic

Apr. 20, 2017 12:52 pm

TEDCO has new money to close your startup’s funding gap

The Gap Investment Fund, which was included in Gov. Larry Hogan's new budget, is looking to help companies grow — and grow here.

At the 2016 TEDCO Entrepreneur Expo.

(Photo by Flickr user Maryland GovPics, used under a Creative Commons license)

TEDCO has new funding for startups who are past the seed funding stage but not quite ready for VCs.

Maryland’s quasi-public agency that helps early-stage companies received $1 million from the state to create the Gap Investment Fund.

The funding was provided in Gov. Larry Hogan’s 2018 budget, which passed the General Assembly during its recently completed 90-day session. As a result, the money will first be available on July 1.

In a statement, Hogan said the funding can provide a “much-needed lifeline” for companies. It’s one of the most significant moves for the tech community to come out of this year’s legislative session in Annapolis.

"We don't want them to feel they need to leave the state of Maryland to continue to grow. We want them to grow here."
John Wasilisin, TEDCO

TEDCO will look to provide investments of $200,000 to $500,000, TEDCO President John Wasilisin said. It has to be matched from outside investors, and must be used to hire new employees.

The program adds another layer of funding available to startups from TEDCO, which provides $100,000 investments to companies through its Seed Investment Fund, and now manages the Maryland Venture Fund for later rounds. In providing that funding, Wasilisin said TEDCO sees companies that need additional funding as they transition from validating a product toward entering the market.

“There is still a gap between companies that are getting our seed fund and companies that are ready to qualify for venture funding,” Wasilisin said.

That has implications for efforts to grow the state’s tech community. When they can’t find funding to keep growing, companies begin looking out of state, Wasilisin said.

“We don’t want them to feel they need to leave the state of Maryland to continue to grow,” he said. “We want them to grow here.”

Wasilisin is optimistic, saying he anticipates the demand will “far outstrip the supply of dollars” that is available this year.

Companies do not need previous investment from TEDCO to be eligible for the funding, Wasilisin said. The new program comes amid moves by TEDCO to broaden its reach in the state.

“We really want to make sure that we’re serving the entire economic landscape,” Wasilisin said.

Advertisement

Organizations: TEDCO
-30-
LEAVE A COMMENT

Advertisement

Maryland jet engine startup raises $1.45M from USM, Abell Foundation

Maryland, ACLU reach settlement in lawsuit over Gov. Larry Hogan’s Facebook page

Paragon Bioservices gets state, county aid for expansion

SPONSORED

Baltimore

How Think|Stack and Year Up are cultivating local tech talent

Baltimore, MD 21201

14 West

Email Production Associate

Apply Now
3500 Boston St, Baltimore, MD 21224

SmartLogic

Sales and Business Analyst

Apply Now
Baltimore or remote

Fastspot

Back-end Web Developer

Apply Now

Funding news about Hungry Harvest

Maryland announces plans for text to 911 system

The Maryland General Assembly is once again considering an angel investor tax credit

SPONSORED

Baltimore

Let these free workshops help your business really take off

Baltimore, MD 21201

14 West

Messaging Product Manager

Apply Now
Philadelphia, PA

160over90

Digital Creative Director

Apply Now
Baltimore, MD 21201

14 West

Front-End Web Developer

Apply Now

Sign-up for regular updates from Technical.ly

Do NOT follow this link or you will be banned from the site!