Seed Investment Fund Application

General Company Details

Company Name

Insert full, legal name. If applicant is already registered with the Maryland State Department of Assessments and Taxation (SDAT), the name inserted here should match the SDAT registration

Company Type

Corporation	Limited Liability Company
Limited Liability Partnership	Limited Partnership

*In order to secure a TEDCO investment, applicant cannot be a Sole Proprietorship or General Partnership.

Company Website

Full URL if applicable

Eligibility Questions

TEDCO’s investment thesis is very clearly defined by the State of Maryland. These six simple questions will help to quickly establish your eligibility before proceeding with the balance of the application.

Is the applicant a technology-based business?

Yes

Does the applicant agree to use the TEDCO investment to primarily support business operations in Maryland or in the case of a start-up, establish and support business operations in Maryland?

Yes

Does the applicant agree to execute a securities repurchase agreement or an equivalent commitment, each with a duration of five years, subject to the terms determined by TEDCO and in the form approved by the Office of the Attorney General?

Yes

Does the applicant currently have 250 or fewer employees?

Yes

Is the applicant primarily engaged in the provision of professional services by accountants, attorneys, or physicians?

No

Is the applicant primarily engaged in retail sales, real estate development, insurance, banking or lending?

No

Principal Business Operations

“Principal Business Operations” means the headquarters from which the applicant's officers direct, control, and coordinate the applicant's business activities.

Street Address

City

State

Zip Code

County

Additional Business Locations of the applicant (both inside and outside Maryland)

Please list full addresses below

Primary Contact Information

First Name

Last Name

Title

Phone

Email

Company Overview (100 Word limit)

Description of Business/Product (Explain why it is a great opportunity for an investment.)

Document Submission

Executive Summary (35 mb maximum)

Financial Model (35 mb maximum)

Occupancy Rights (35 mb maximum)

A copy of the lease, license agreement, deed, or other document that evidences the applicant’s right to occupy the physical location of the Principal Business Operations, the headquarters from which the applicant's officers direct, control and coordinate the applicant's business activities.

Additional Company Information

Employment Data

How many founders and employees does the applicant have in total?

How many founders and employees does the applicant have working in Maryland?

"Employee" means a full-time or full-time equivalent W-2 reporting worker of a business.

"Founder" means an individual who established a business by: (a) Assuming a portion of the risk of the business; and (b) Having the initial rights to a portion of the profits of the business.

Additional Information

In general, if applicant does not maintain its Principal Business Operations located in the State, have over half its workforce working in the State, and intend to maintain its Principal Business Operations in the State after receiving an investment under the Program, the applicant may submit to TEDCO information that the applicant’s business will have a substantial economic impact in the State as set forth in COMAR 14.04.07.

After reviewing information submitted by the applicant below, TEDCO may request additional information or conduct its own investigation of the applicant’s potential for substantial economic impact in the State. In its sole discretion, TEDCO may submit information provided in this section of the Application to the TEDCO Investment Committee for its consideration of whether to approve of the applicant's eligibility.

Describe the nature of applicant’s current economic impact on the State of Maryland and describe how a TEDCO investment will increase that impact.

600 words maximum

Dilutive Funding Details

How much dilutive funding has the applicant raised to date?

How much dilutive funding is the applicant raising in this round?

When was the applicant legally formed?

Can be relative date

When did the applicant commence the operations described in this Application?

Can be relative date

General Investment Criteria

Criteria

The applicant shall address the following General Investment Criteria so that TEDCO can evaluate and score the investment opportunity.

1. The growth potential of the applicant based on a credible and sustainable business model.

300 words maximum

2. The degree to which the applicant’s proposed product or service addresses a need in the market and brings value to customers.

300 words maximum

3. Size of the total addressable market for the applicant’s product or services.

300 words maximum

4. The analysis of competitors in the market and sustainability of the applicant’s competitive advantage.

300 words maximum

5. The strength of the applicant’s management team including the team’s technical competence, entrepreneurial experience, business experience, and ability to grow the business.

300 words maximum

6. The potential of the applicant or the applicant’s management team, as applicable, to raise follow-on capital, increase revenues, and create jobs.

300 words maximum

7. Stage of development for product or services including market testing, customer discovery, and scientific validation.

300 words maximum

8. The applicant’s plan to deliver product or services to the market including manufacturing, marketing, partnering and as applicable, regulation strategies.

300 words maximum

9. The amount of funds the applicant has raised as of the date of application.

300 words maximum

10. The applicant’s future financing plan including financial models, employment plan, strategic milestones, and capital needs.

300 words maximum

11. The applicant demonstrates a reasonable opportunity that TEDCO will receive a positive return on its investment.

300 words maximum

Diversity & Inclusion

The applicant shall address the following Diversity and Inclusion Criteria such that TEDCO can evaluate and score the investment opportunity.

1.The investment has the potential to result in a positive economic development impact for a region or an area which is economically distressed or a rural area or a rural community.

500 words maximum

2. A founder of the applicant or a member of the applicant’s executive leadership has self-identified as a member of a group that is economically disadvantaged. Refer to 13 CFR §124.103 and 13 CFR §124.104 before addressing this criterion.

500 words maximum

3. Applicant may take this opportunity to self-identify economic disadvantage. Refer to 13 CFR §124.103 and 13 CFR §124.104 before addressing this criterion.

500 words maximum

SEED Funding Options

The applicant is applying for the following TEDCO Seed Investment Fund (select only one) and, by applying, hereby certifies that it meets the stated Fund-specific eligibility requirements.

Technology Commercialization Fund (up to $200,000 per investment)
At the time of the application and initial investment, the business: (a) Has raised not more than $2,500,000 of dilutive funding, not including the investment; and (b) Employs not more than 15 employees.
Cybersecurity Investment Fund (up to $200,000 per investment)
The business shall be focused on information technology, including the protection of networked devises, networks, programs, and data from unintended or unauthorized access, change, or destruction. At the time of the application and initial investment, the business: (a) Has raised not more than $2,500,000 of dilutive funding, not including the investment; and (b) Employs not more than 15 employees.

GAP Fund (up to $500,000 per investment)
The business shall have secured verifiable funding commitments from non-government sources for a concurrent $1:1 ratio match to TEDCO’s investment, the receipt of which by the business shall be a condition of closing the TEDCO investment. The business 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. At the time of the application and initial investment, the business: (a) Has raised not more than $5,000,000 of dilutive funding, not including the investment; and (b) Employs not more than 30 employees.
Life Science Investment Fund (up to $200,000 per investment)
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. At the time of the application and initial investment, the business (a) Has raised not more than $2,500,000 of dilutive funding, not including the investment; and (b) Employs not more than 15 employees.

Amount of money being raised in this round.

Amount of money already committed and closed in this round.

Amount of money sought from TEDCO in this round.

Criteria

The applicant shall address the following Seed Funding Investment Criteria so that TEDCO can evaluate and score the investment opportunity.

1. The market opportunity is appropriate for a seed-stage investment.

300 words maximum

2. The applicant has the potential to secure institutional venture capital from other investors.

300 words maximum

3. The management team has the skills and ability to effectively secure an institutional venture investment.

300 words maximum

The undersigned hereby certifies and affirms that the statements and information set forth in the application, as supplemented by any additional materials or documents, are true, correct and complete. The undersigned will promptly notify the Maryland Technology Development Corporation in writing if the undersigned acquires knowledge or information, directly or indirectly, that any of the statements, information, materials or documents are incorrect or incomplete. Material misstatements, material omissions or material misrepresentations in the application or any accompanying documents or materials will be a basis for denying an application for funding.

Agree to above