As a state filled with brilliant minds, access to world-class laboratories and researchers, and high-ranking universities, it only makes sense for Maryland to lead efforts to support the innovation derived from these assets to the commercial market. At the center of this vision stands TEDCO (Maryland Technology Development Corporation); founded in 1998, the organization continues to create an impact on the entrepreneurial ecosystem, remaining at the forefront of fostering research and innovation statewide.
Under CEO Troy LeMaile-Stovall’s leadership, TEDCO continues to demonstrate that ‘leading innovation to market’ is more than just a tagline – it’s a tangible action.
Investing in the Future
Created to serve as the State’s venture capital arm for technology and life science-based startups, TEDCO is paving the way for continued ecosystem growth. Over the past 27 years, the organization’s efforts have proven successful, contributing to the creation of more than 12,000 state-based jobs, over $140 million in state and local tax revenue each year, and generating more than $2.7 billion in economic impact.
“TEDCO’s investment funds are carefully curated to target different groups of innovators across the state,” LeMaile-Stovall explains. “Through our Social Impact Funds, we are able to support underrepresented founders through the early stages of their business, providing them with not only capital, but a community of support; through investments from our Seed Funds, we are providing capital to those showing great promise for continued growth and sustainability, giving the business an extra push to help them stand alone; through the evergreen Venture Funds, we are committed to supporting and growing the next generation of great businesses; and through our VCLP (Venture Capital Limited Equity Program) program, we are supporting up-and-coming Venture Capitals with the means to invest in diverse, merit-based, and sustainable companies.”
With the major successes of TEDCO’s investment funds, the organization is often recognized and spotlighted across the state. In 2022, the State of Maryland chose TEDCO as one of three entities to receive State Small Business Credit Initiative (SSBCI) funds.
This decision is providing TEDCO with up to $50 million to be distributed through the existing investment funds, allowing the organization to continue leveraging relationships with companies, entrepreneurs, and investors while also collaborating with universities, regional business accelerators and incubators, and other organizations. As stewards of this funding, the organization has excelled.
“As one of the top five Small State Business Credit Initiative investors in the country, according to the U.S. Department of the Treasury, we are pleased to say that our efforts have supported significant returns in Maryland, where portfolio companies have grown and our ecosystem continues transforming, becoming more sustainable and diverse,” LeMaile-Stovall explains. “Seeing these changes really solidifies the importance of creating a connected suite of resources, programs and opportunities for entrepreneurial success.”
This small but mighty organization ranks as one of Pitchbook’s top 20 investors in the Mid-Atlantic region, investing in technology and life sciences companies across the state – an achievement that continues to blossom new programs and initiatives that will meet entrepreneurs where they are at.
Meeting Innovation Where It’s At
As a state with numerous laboratories, universities, and researchers, it is expected that the life sciences industry is booming with innovation. To encourage the continued research while meeting innovators where they’re at, TEDCO hosts two programs to reach researchers and academics in the laboratory.
The Maryland Innovation Initiative (MII) was first created in 2012 as a collaborative effort between the State of Maryland and five academic research institutions—Johns Hopkins University, Morgan State University, University of Maryland, College Park, University of Maryland, Baltimore and University of Maryland, Baltimore County. Through this collaboration, the program has supported the creation of more than 400 jobs and more than 190 companies from university labs. This success has led to the expansion of the program, allowing TEDCO to reach any Maryland-based non-profit institute of higher education.
In addition to reaching academic minds where they are, TEDCO’s Maryland Stem Cell Research Fund (MSCRF) reaches researchers across the world. The MSCRF was created in 2006 through legislation to promote state-funded human stem-cell research and medical treatments through grants to public and private entities across the state. Recently, the program expanded to allow funding for companies based outside Maryland, as long as clinical trials are being done within the state. By funding this cutting-edge research, the program has advanced innovation in more than 700 projects targeting treatments and cures for diseases, including sickle cell, regenerative therapy for spinal injuries, and more.
Outside the lab, Maryland is known for its diverse communities, each filled with innovators from different backgrounds and areas of expertise, but all of whom TEDCO seeks to reach and uplift.
Paving the Way for New Opportunities
Innovation is cultivated from different individuals with a wide range of perspectives and backgrounds who are examining the same problem, identifying gaps, and working towards solutions. TEDCO’s existence fuels this culture, encouraging collaboration across industries, backgrounds, and locations through programs like the Rural and Urban Business Innovation Initiatives, the Equitech Growth Fund, and more.
Traditionally, rural and urban founders have had less access to resources that can fuel businesses and allow innovation and exploration to flow. Through the Rural and Urban Innovation Initiative, TEDCO works to change the narrative, offering experienced mentors to startup businesses looking to expand.
“Innovation can be found in any industry or location – this is why we remain industry agnostic and continue to adjust our resources to support founders from all regions and backgrounds,” explains LeMaile-Stovall. “By targeting entrepreneurs in rural and urban locales, we can ensure that there is a greater chance for more equitable investing, therefore stimulating an environment for increased innovation.”
Taking it a step further, TEDCO ensures that entrepreneurs have sustainable tools and resources to address market challenges and barriers as they arise. The company strategically targets business owners who struggle through the ‘friends and family’ stages of fundraising, supporting entrepreneurs who experience economic disadvantages, and empowering those who are traditionally overlooked.
One example of this can be seen through the recently launched Business Resource Information, Development and Guidance (BRIDGE) Program. Created to provide legal, accounting and financial advisory services to Socially and Economically Disadvantaged Individuals-owned businesses, the program aims to pave new opportunities that provide better access to capital for these underserved populations.
“Not everyone comes from the same background – it’s part of what fuels innovation,” LeMaile-Stovall says. “But that can also mean that those with economic disadvantages struggle to get their businesses up and running—even if their innovations are fueling progress. By dedicating resources to traditionally underserved individuals, we have found that we are not only investing in the growth of TEDCO and Maryland, but we are actively uplifting communities, driving economic development, and supporting the continued progress towards becoming an innovation hub.”
