Seed Funds
Success Stories
TEDCO’s Seed Funds are invested in businesses that show promise of becoming venture fundable companies or those that, through a seed investment, will be sustainable through customer revenue, follow-on funding, or other forms of corporate venture.
TEDCO is pleased to be one of the direct participants in the deployment of Maryland’s State Small Business Credit Initiative (SSBCI). This money will support TEDCO’s Seed Funds, which are invested in companies that show promise of becoming venture fundable companies or are companies that, through a seed investment, will be sustainable through customer revenue, follow-on funding, or other forms of corporate venture.
Frequently Asked Questions
How does my company apply?
Submit an application through the MYTEDCO Portal.
What are the requirements for investment?
TEDCO is an instrumentality of the State of Maryland and uses taxpayer dollars to fuel its investment programs. These programs are subject to Maryland laws and there are some basic legal requirements for all investment programs as well as additional requirements for specific investment programs. The statute and regulations can be found here: (TEDCO Statute; InvestMaryland Program Statute; and COMAR).
- Early-stage, technology-based companies
- Early-Stage: For companies applying for their first investment from Seed, all companies must have started operations within five years from the date of the application and investment. Companies applying to the Builder Fund are not subject to the five-year limitation. Also, an applicant cannot have received over $15,000,000 in funding (not including funding from TEDCO or grants) to be considered early-stage. Please see below for the specific (and lower) dilutive investments limits for each Seed program. If your company employs more than 250 employees, it is not eligible. Some of these requirements do not apply to follow-on funding from TEDCO.
- Technology-Based: How does TEDCO define “technology-based”? For TEDCO, a technology company is one that applies science for practical purposes and includes products and processes that are or will be protectable as intellectual property. Your company must rely on the technology to provide a competitive advantage in the market. Click here for more info.
- Maryland-based companies: TEDCO must determine that your company is a Maryland-based company (called a “qualified business” under Maryland law). To be considered a Maryland-based company, it must meet the requirements below.
- Commitment to Maryland: TEDCO invests in companies that are committed to Maryland and intend to stay. Your company will need to be willing to sign a five-year agreement commonly called a claw back. The basic concept of a claw back is to allow TEDCO to divest itself of a company that no longer meets the requirements of a Maryland-based business.
- Types of Maryland-based Companies that Cannot Receive TEDCO Investment
- In general, TEDCO cannot invest in the following types of companies:
- Sole proprietorships (your company must be formed as an entity such as a corporation or limited liability company)
- Companies with more than 250 employees
- And, TEDCO cannot invest in companies primarily engaged in:
- Retail sales
- Real estate development
- Insurance, banking or lending
- Professional accounting, law or medical services
- In general, TEDCO cannot invest in the following types of companies:
In rare circumstances, TEDCO will be able to invest in a company that does not meet the requirements of a Maryland-based business, if the company is likely to provide substantial economic impact to Maryland in terms of job growth, capital investment and contributions to Maryland’s ecosystem.
What are the additional requirements for specific investment programs?
- Technology Commercialization Fund
- Cybersecurity Investment Fund
- Life Science Investment Fund
- Gap Fund
