May 17, 2016
Funding a Tech Start-Up
Unless you happen to share a tax bracket with Bill Gates or Mark Zuckerberg it is unlikely you have the financial means to take your great idea from the home office to the front cover of the Washington Business Journal on your own. As a more-likely alternative to winning Powerball, the State of Maryland and Montgomery County offer a variety of financial programs aimed at entrepreneurs and start-ups to accelerate innovation and advance ideas to economic success. This post provides an overview of several programs offered by REDI’s partners that may help your business transform an idea into a commercial-ready product.
Validating Your Technology
Is there a viable market for your technology and does it function as expected? These two vital questions for entrepreneurs typically require a certain level of expertise, which is where the MD Technology Development Corporation (TEDCO) steps in with their Technology Validation Program. The program offers up to $10,000 for a market analysis and development of a commercialization plan, as well as up to $40,000 for proof-of-principle studies, for entrepreneurs relying on a technology from non-profit research organizations, federal labs, and certain universities in Maryland.
Commercializing Your Technology
With the confidence that your technology performs its intended purpose and a captive market exists, the fiscal challenge continues with the prospect of advancing the technology along the commercialization pathway. Fortunately, TEDCO is there to support you with its Technology Commercialization Fund, which provides up to $225,000 to achieve significant product development and prepare a company for later-stage investments or product launch.
Cybersecurity and BioHealth/Life Sciences to the Front
As evidenced by the additional tools available to start-ups in these industries, strengthening their presence is a strategic goal for the State of Maryland and here in Montgomery County. To entice investment in start-ups, the State of Maryland offers Biotechnology and Cybersecurity Investment Incentive Tax Credit programs, which provide investors with income tax credits. In the same mold, Montgomery County offers local supplements to investors that are approved for either of the State’s program. Moving beyond tax credits, TEDCO offers investment funds dedicated to both cybersecurity and life science.
For additional tools available to startups in Rockville, including angel investors and venture capital firms in the region, please visit our funding & incentives page.
– Michael Stiefvater, AICP, Business Development Manager