1. A. In General. Except as provided in §§B and C of this regulation, TEDCO shall select businesses for investment by the Pre-Seed Builder Fund or the Inclusion Fund in accordance with the application process as set forth in COMAR 14.04.02.

2. B. Investment Criteria.

   1. (1) In addition to the investment criteria described in COMAR 14.04.02.05, the following investment criteria shall form the basis of TEDCO’s determination of the applicant’s potential to attract subsequent financing or investment after participating in the Pre-Seed Builder Fund or the Inclusion Fund and to create jobs in the State:

      1. (a) Whether the applicant has or does not have available to it other means of financing; and

      2. (b) Whether the applicant has secured, through verifiable documentation:

         1. (i) Expressions of interest in providing financing to the applicant from sources of institutional venture investment or other financing sources, based on specified milestones; or
         2. (ii) Network opportunities, including introductions to customers, employees, and partners.

   2. (2) TEDCO shall use the investment criteria to evaluate applicants to determine:

      1. (a) Whether an applicant advances in the application process; and
      2. (b) The extent to which the achievement of milestones determined by TEDCO or the receipt of executive support will be a condition of investment by the Pre-Seed Builder Fund or Inclusion Fund.

   3. (3) TEDCO may require:

      1. (a) Eligible applicants to interview with TEDCO program staff; and
      2. (b) Finalists for investment to make in-person presentations to TEDCO program staff.

3. C. Re-application After Initial Rejection. If TEDCO rejects a business for investment by the Pre-Seed Builder Fund or by the Inclusion Fund after the business submits a first application to TEDCO, the business may re-apply to TEDCO upon the later of:

   1. (1) 120 days after the date on which TEDCO issues a written rejection to the business; or
   2. (2) The satisfaction of recommendations by TEDCO, if any.

4. D. Re-application After Subsequent Rejection. If TEDCO rejects a business for investment by the Pre-Seed Builder Fund or by the Inclusion Fund any time after the business submits a second application to TEDCO, the business may re-apply to TEDCO upon the later of:

   1. (1) 1 year after the date on which TEDCO issues a written rejection to the business; or
   2. (2) The satisfaction of any recommendations by TEDCO, if any.

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

Effective date: December 30, 2019 (46:26 Md. R. 1167)

Regulation .01 amended effective February 21, 2022 (49:4 Md. R. 302)

Regulation .02 amended effective February 21, 2022 (49:4 Md. R. 302)

Regulation .03B amended effective February 21, 2022 (49:4 Md. R. 302)

Regulation .04 amended effective February 21, 2022 (49:4 Md. R. 302)

Regulation .05B, C amended effective February 21, 2022 (49:4 Md. R. 302)

Regulation .06 amended effective February 21, 2022 (49:4 Md. R. 302)