Two new venture capital firms join Mid-Atlantic VC company Grotech Ventures as distributors of a piece of the state’s $84 million InvestMaryland fund.
“New Atlantic Ventures in Reston will receive $8 million and Kinetic Ventures in Chevy Chase will receive $5 million through the program, which is run by the Maryland Venture Fund Authority,” reports the Baltimore Business Journal.
As Technically Baltimore has reported, two-thirds of the InvestMaryland funding will be administered by venture capital firms chosen by the state. VC firms are expected to return the initial investment made by Maryland back to the state. Of course, that depends on whether the firms’ investments are successful. As the Baltimore Business Journal reports:
Any profit would be split between the venture firm and the state — the firms would keep 20 percent, and 80 percent would go to the state’s general fund. [more]
In December, Grotech Ventures, which has offices in Hunt Valley, was given $12 million to invest. One company Grotech has invested in is LivingSocial, which just posted a net loss of $650 million in 2012.
New Atlantic Ventures makes investments in mobile, cybersecurity and e-commerce companies, among others. Kinetic Ventures is an investor in communications and cleantech, among other industries.
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