# COMAR Title 14 — Independent Agencies

## Subtitle 04 — Maryland Technology Development Corporation

### Chapter 09 — Maryland Equity Investment Fund

**Authority:** Economic Development Article, §10-409, Annotated Code of Maryland

**Administrative History:** Effective date: September 18, 2023 (50:18 Md. R. 800)

#### Regulation .01 Purpose.

*COMAR 14.04.09.01*

These regulations prescribe the objectives and investment policy of the Maryland Equity Investment Fund, and the eligibility requirements, criteria, procedures, and guidelines for investment by the Maryland Equity Investment Fund.

#### Regulation .02 Objective.

*COMAR 14.04.09.02*

Through the Maryland Equity Investment Fund, TEDCO seeks to invest in qualified businesses with a goal to increase private equity and venture capital in the State that will have the potential to:

A. Generate financial returns to the benefit of the participants of the several pension systems managed by the State Retirement and Pension System; and

B. Foster economic growth throughout the State.

#### Regulation .03 Definitions

*COMAR 14.04.09.03*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Maryland Equity Investment Fund” means the investment program established by §10-487 of the Act.

  (2) “Qualified business” has the meaning stated in §10-487(a)(4) of the Act..

#### Regulation .04 Investment Philosophy and Types of Qualified Businesses.

*COMAR 14.04.09.04*

TEDCO seeks to invest in businesses that have demonstrated financial success and continued growth potential appropriate for subsequent venture investments or a public offering.

#### Regulation .05 Eligibility.

*COMAR 14.04.09.05*

TEDCO shall be satisfied that the applicant is a qualified business and meets the requirements under COMAR 14.04.02.04.

#### Regulation .06 Investment Criteria.

*COMAR 14.04.09.06*

In General. In addition to the investment criteria set forth in COMAR 14.04.02.05, TEDCO shall consider the following investment criteria:

A. Whether the market opportunity is appropriate for venture capital;

B. Whether the applicant, at the time it submits an application to TEDCO, is raising a minimum investment round of $2,000,000;

C. Whether the investment has the potential to generate returns of two times the amount of TEDCO’s invested capital not more than 8 years from the date of the investment;

D. Whether the applicant presents a plausible exit strategy for investors; and

E. Whether the management team has the skills and ability to effectively secure an institutional venture investment concurrent with the investment of the Maryland Equity Investment Fund.

#### Regulation .07 Procedures and Guidelines for Investment Decisions.

*COMAR 14.04.09.07*

TEDCO shall select businesses for investment by the Maryland Equity Investment Fund in accordance with the application process set forth in COMAR 14.04.02.