supporting growth in montgomery county

Montgomery County, Maryland, has experienced a huge jump in Venture Capital investment – more than half a billion dollars in the first half of 2018 alone. Investment is growing to support our innovative thinkers to start and expand in the County.


$
0
M

Venture capital investment from Jan.-July 2018

0
%

VC investment is in biotech in 2018

$
0
M

Average VC investment in 2018

0

Deals since 2014 totaling $1.8B


Funding on the rise

In the first seven months of 2018, Montgomery County has received more funding than Virginia and Washington, D.C., combined. The $556.3M in investment is larger than the annual total of any year in the past five. The average deal in 2018 is $15.39M – that’s nearly triple what it was in 2015.

Venture capital investors can provide:

  • Seed funding to help new companies get off the ground

  • Assist established companies looking to grow

  • Help a company commercialize a product or idea

Some VC firms specialize in healthcare, biotech, IT or cyber security, while others look for a new ‘disruptor’ in a category. Montgomery County is fortunate to have great companies supporting funding and innovation. 

Public Funding Resources

TEDCO provides knowledge, funding and networking to support innovators, researchers, entrepreneurs, start ups and early stage companies. Its mission is to bring innovative ideas to market. TEDCO also makes available Network Advisors to help meet the unique needs of Maryland start-up companies. 

TEDCO helps in the following ways: advances ideas from research labs to commercialization; assists start-ups with knowledge and resources to launch; and helps established companies expand to reach the next phase of commercial success. 

Created by the Maryland State Legislature, TEDCO has made available $1 million in new economic development funds that will provide startup technology companies with investment capital to help cover the gap between seed funding and venture capital investments.

Maryland Venture Fund is an early-stage venture capital fund specifically dedicated to growing the next generation of innovative businesses in Maryland. In addition to funding, they lend their considerable expertise to companies to help make the business successful. Maryland Venture Fund has more than $100M in assets, giving them the scope to partner with exceptional entrepreneurs to build great companies with a bright future. The website features a Send us your Pitch Deck link to help move forward early-stage businesses.

The Dingman Center Angels connects regional start-up companies seeking seed and early-stage funding with angel investors.

MSBDFA Equity Participation Investment Program (EPIP) provides equity investment in socially or economically disadvantaged businesses.

Maryland Momentum Fund at The University System of Maryland (USM) has launched an early-stage investment fund to increase new company creation and commercialization of its leading-edge research. Participants must be a Maryland-based company and other eligibility requirements apply.

The State of Maryland Business Assistance Program is a searchable database including loans, grants and venture capital opportunities.

top public investors since 2014

Maryland Venture Fund: 21 deals

TEDCO: 20 deals

U.S. Department of Health & Human Resources (HHS): 13 deals

National Science Foundation: 9 deals

National Institutes of Health (NIH): 6 deals

TEDCO’s Seed Investments exist to support Maryland companies in their effort to develop and commercialize new technology-based products. TEDCO’s investment truly makes a difference in helping them advance their technologies further along the commercialization pathway, which can increase the company’s valuation and lead to follow-on investment, sustainability, and job creation.

John Wasilisin, TEDCO President & COO

Local Investment Firms Fuel Growth

Many VC firms locally and from around the country recognize the benefits of investment in Montgomery County. The following two Venture Capitalists, Keiretsu Forum and Revolution have funded multiple deals in Montgomery County. 

Keiretsu Forum is a private equity angel investment organization serving the region, and has an office in Bethesda. It is part of a global investment community of accredited private equity angel investors, venture capitalists and corporate/institutional investors. Keiretsu Forum is a worldwide network of capital, resources and deal flow with 52 chapters on 3 continents. 

  • Promaxo, Rockville, MD. A biohealth company with a focus on prostate cancer screening, biopsky and treatment.

  • Otomagnetics, Rockville, MD. A woman-owned, minority owned company that is a University of Maryland College Park spin out. The growing company’s innovative approach is in developing non-invasive ways to deliver drugs and other therapies to inner and middle ear, the eye and the skin.

Revolution focuses on investing in people and ideas that can change the world, and that fits in perfectly with Montgomery County businesses. They look for ‘disruptors’ that think out of the box, focusing on industries on the verge of change.

  • Homesnap provides real-time MLS data to make home searching easier; funding is for the a Business to Consumer app. Based in Bethesda.

  • Insightin Health helps companies personalize communication, improve CRM and connect big data to people, from its Gaithersburg location.

Key industries Receiving Funding in 2018

Biotech: 72.19% of these investments – $370M

Drug Discovery: 4.09% – $21M

Application Software: 9.35% – $49M

Business Productivity Software: 4.17% – $21M

Advanced Manufacturing: 4.87% – $25M

 
 

 

Connect

NADIA KHAN, J.D.
Business Development Specialist 

240.641.6711
nadia@thinkmoco.com