TEDCO defends stem-cell and innovation investments as panel hears patient testimony and budget details

The Maryland Technology Development Corporation (TEDCO) and affiliated programs told the Education and Economic Development Subcommittee on Oct. 27 that the state’s investments in stem-cell research and university commercialization have produced economic activity, company formation and clinical advances while the governor’s fiscal 2026 allowance includes a $5 million reduction for the Maryland Stem Cell Research Fund (MSCRF).

Elizabeth Bridal of the Department of Legislative Services presented a budget analysis that showed TEDCO’s fiscal 2026 allowance decreases by about $5 million to roughly $53 million, largely because of the reduced appropriation for the Stem Cell Research Fund. Bridal said the Stem Cell Research Fund has received about $242 million since 2007, almost entirely in general funds, and that the fund’s annual level has varied because there is no mandated funding floor.

Troy Lamel Stovall, TEDCO’s CEO, described TEDCO as a venture-development and economic-development entity that supports early-stage technology and life-science companies. “We act as an economic development, venture development organization, a venture capital fund that helps to identify, support, invest, and scale early stage technology and life science companies for the state of Maryland,” Stovall said.

Rishika (executive director of the Maryland Stem Cell Research Fund) told the subcommittee that in 17 years the fund has supported about 600 projects across 41 entities and that the program’s $28 million in investments produced $525 million in reported economic activity, about $200 million in labor income, more than $19 million in state and local taxes and about 2,000 jobs. Rishika said translational and manufacturing grant requests have surged and that the fund’s demand exceeded available funding: in fiscal 2024 applicants requested about $37 million for translational grants against roughly half that amount in available funds.

Several company leaders described how MSCRF and TEDCO programs helped move laboratory research toward commercialization. Vinny Jindal, co‑founder and chief executive of Secretome Therapeutics, said MSCRF support helped the company advance patents, obtain FDA clearance for early studies and attract $23 million in investor capital. “Every dollar of the grant funding that we receive from MSCRF has been spent back into research and development in Maryland,” Jindal said.

Patient testimony underscored clinical effects. Angela Freeman, a clinical trial participant, described two stem-cell procedures — a bone-marrow transplant and an ocular stem-cell treatment — and told the committee the treatment materially improved her eyesight and quality of life. “When she put the stem cells in, it didn't hurt. I came back two weeks later and I said, I can see,” Freeman said.

TEDCO and program staff outlined other TEDCO activities: the Maryland Innovation Initiative (MII) has deployed more than $60 million since 2012 in grants and investments to university and startup technologies and reports a roughly 13‑to‑1 leverage ratio of state dollars to additional private and federal funding. MII’s executive director said the program is expanding pilot work to include additional public institutions and launching the Baltimore Innovation Initiative to support entrepreneurship across the Baltimore–Columbia–Towson region.

TEDCO officials described their portfolio approach to applicants and rejection feedback. Stovall said TEDCO approves a substantially higher share of applications than typical private venture capital firms and that the agency provides coaching and follow-up to applicants who are not initially funded. A small-company CEO in the hearing recounted being denied initially for GMP manufacturing support, implementing the reviewers’ recommendations, and later receiving funding after reapplying.

DLS recommended concurrence with the governor’s allowance for TEDCO as presented; TEDCO leaders argued for continued and stable support for stem-cell and commercialization work, noting the programs’ reported job creation and follow‑on investment metrics. Committee members asked about reporting and metrics; TEDCO said it publishes quarterly and annual reports, an annual economic-impact analysis, and submits materials required by state auditors.

The subcommittee heard no formal motion or vote on TEDCO funding during the session. TEDCO and its partners said they remain available to provide additional data and follow-up reporting to lawmakers.