Md. Code Regs. 14.04.05.05

Current through Register Vol. 51, No. 24, December 2, 2024

Section 14.04.05.05 - Eligibility

A. In General. TEDCO shall be satisfied that the applicant meets the requirements under COMAR 14.04.02.04.I n addition to the requirements set forth in COMAR 14.04.02.04, TEDCO shall be satisfied that the business is based on the validation of a minimum viable product or, in the case of life sciences, proof of concept data with validation from in vitro or in vivo models or patient samples.

B. Eligibility for Specific Seed Funds.

(1) For Technology Commercialization Fund investments, at the time of the application and initial investment, the business:

(a) Has raised not more than $10,000,000 of dilutive funding, not including the investment; and

(b) Employs not more than 30 employees.

(2) For Cybersecurity Investment Fund investments, the business:

(a) Shall be focused on information technology, including the protection of networked devises, networks, programs, and data from unintended or unauthorized access, change, or destruction; and

(b) At the time of the application and initial investment:

(i) Has raised not more than $10,000,000 of dilutive funding, not including the investment; and

(ii) Employs not more than 30 employees.

(3) For GAP Fund investments, the business:

(a) Shall have secured verifiable funding commitments from non-government sources for a $1:1 ratio match to TEDCO's investment, the receipt of which by the business shall be a condition of closing the TEDCO investment;

(b) Shall receive the non-governmental source of funding specified in §B(3)(a) of this regulation not more than 90 days before TEDCO's investment and in connection with the same financing round in which TEDCO invests; and

(c) Shall use the proceeds from TEDCO's investment for payroll to compensate new employees in the State hired by the applicant after or not more than 90 days before TEDCO's release of the investment proceeds; and

(d) At the time of application and initial investment:

(i) Has raised not more than $10,000,000 of dilutive funding, not including the investment; and

(ii) Shall employ not more than 30 employees.

(4) For Life Science Investment Fund:

(a) The business shall be considered an early-stage business if the business submits an application for investment to TEDCO:

(i) Not more than 7 years after the date on which the business commenced operations or not more than 5 years after the date on which the business received its final approval from the United States Food and Drug Administration for the product or device the business is developing, whichever is later; and

(ii) Otherwise meets the requirements of an early-stage business;

(b) The business shall be in the process of developing a technology for a product for human health that requires approval from the United States Food and Drug Administration prior to market; and

(c) At the time of the application and initial investment, the business:

(i) Has raised not more than $10,000,000 of dilutive funding, not including the investment; and

(ii) Employs not more than 30 employees.

Md. Code Regs. 14.04.05.05

Regulation .05 adopted effective 46:26 Md. R. 1167, eff. 12/30/2019; amended effective 49:4 Md. R. 302, eff. 2/21/2022