Cybersecurity fundingMaryland creates fund to support cybersecurity startups
The Maryland Technology Development Corporation, (TEDCO) an independent public organization founded by the Maryland General Assemblyand funded by the state, has created a $1 million fund to invest in startups developing new cybersecurity technologies.
The Maryland Technology Development Corporation, (TEDCO) an independent public organization founded by the Maryland General Assembly and funded by the state, has created a $1 million fund to invest in startups developing new cybersecurity technologies. Eligible companies must be based in Maryland, have fewer than sixteen full-time employees, and must either have zero sales or have received less than $500,000 in outside investment. Applicants may request up to $100,000 from the new Cybersecurity Investment Fund (CIF) to develop processes or mechanisms to protect networks and devices from unauthorized access, attacks, or destruction from natural or man-made disasters.
“Maryland is the epicenter of cybersecurity, home to unmatched federal resources, industry-leading companies and a growing community of dynamic and innovative startup companies,” Governor Martin O’Malley said on Wednesday. “TEDCO’s Cybersecurity Investment Fund will be an excellent addition to the outstanding array of resources we have dedicated to the information security industry. It’s also an important tool to help stimulate growth of promising young companies that are combating today’s cyber threats, creating new jobs and spurring growth in Maryland’s Innovation Economy.”
The Baltimore Sun reports that money from the CIF will be awarded to selected companies in the form of a loan with 8 percent interest, with an option to convert the investment into an equity stake in the company if it receives outside investment worth $500,000 or more. Applications will be accepted on the fifteenth of each month and will undergo a two-month review process.
In a press release, Maryland House Speaker Michael E. Busch said that the U.S. Chamber of Commerce has ranked Maryland as a leading state for entrepreneurial activity and innovation, nothing that Maryland leads the nation in STEM employment concentration. “The Fund will provide critical seed and early-stage funding for local companies to meet the growing demand from the State’s elite cybersecurity industry,” she said.
