Social Impact Funds
Success Stories
TEDCO embraces diversity, equity, inclusion, and merit, supporting all Maryland startup communities. Our Social Impact Funds are purposefully designed to engage and invest in economically underserved founders and communities.
TEDCO is pleased to be one of the direct participants in the deployment of Maryland’s State Small Business Credit Initiative (SSBCI), which supports our Social Impact Funds. We want to optimize the path to follow-on funding; many companies show a path to sustainability without the need for venture capital.
Both the Pre-Seed Builder Fund and the Inclusion Fund have minimum ownership requirements by individuals who demonstrate economic disadvantage. However, Maryland has a strong entrepreneurial ecosystem and oftentimes there are other business resources, including at TEDCO, available for our startups to grow their business.
Frequently Asked Questions
How does my company apply?
Submit an application through the MYTEDCO Portal.
What are the requirements for investment?
Generally early-stage technology Maryland companies can get investment from TEDCO 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 ProgramStatute; and COMAR).
What are the additional requirements for specific investment programs?
- Builder Fund
- This Fund supports early-stage Maryland technology-based companies, as described above with, with the following restrictions.
- At least one full-time employee
- The founder, officers, or managers of the Company agree to receive executive support
- No less than 50% ownership of founders demonstrate social and economic disadvantage
- Inclusion Fund
- This Fund supports early-stage Maryland technology-based companies, as described above with, with the following restrictions.
- At least one full-time employee
- The founder, officers, or managers of the Company agree to receive executive support
- At least 30% ownership of the Company owned by one or more individuals who have demonstrated social and economic disadvantage
- For at least one year after receiving TEDCO’s investment, will the Company be controlled and managed by one or more individuals who have demonstrated social and economic disadvantage
- This Fund supports early-stage Maryland technology-based companies, as described above with, with the following restrictions.
If my company meets the basic requirements, does that guarantee funding?
No. Meeting the requirements means that TEDCO’s investment team gets the green light to evaluate the merits of the investment. The final decision on investment belongs to TEDCO after analysis of your company, considering a variety of criteria. Click here for criteria from the regulations.
Because, TEDCO has limited dollars for investment. TEDCO must make hard choices about investing in some really promising companies. If TEDCO determines that the Company is eligible but chooses not to invest, the company is encouraged to reapply no sooner than 6 months after the initial application if significant commercial progress is made. The same eligibility requirements will be re-evaluated at the time of each application
If TEDCO decides to invest in my company, what happens next?
TEDCO commences additional diligence for the investment. Your companies’ lawyers or your company (if it is not represented by lawyers for the investment) can expect to work with TEDCO’s lawyers to draft investment documents, confirm information regarding eligibility and other matters necessary to complete an investment. There are also required provisions for investment agreements. For information about those provisions, please see TEDCO’s more detailed instructions. Click here to view Practical and Legal Considerations for TEDCO and click here for InvestMaryland Program.
