TEDCO briefs Economic Matters Committee on programs to move Maryland research to market, cites funding gaps in scaling
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Summary
TEDCO executives told the Economic Matters Committee they connect university and lab research to market through grants, seed and venture funds, reporting portfolio returns and a roughly $60 million operating budget while urging more later‑stage capital and manufacturing capacity to keep companies in Maryland.
Troy L. Stovall, identifying himself as CEO of TechHub and speaking for TEDCO, told the Economic Matters Committee that the agency’s work is to "take great ideas" from labs and garages and "bring them to market, and we bring impact." He described TEDCO as a mix of economic‑development, ecosystem and venture functions that provide staged grant and investment support intended to make companies "venture ready."
Stovall summarized TEDCO’s funding model and metrics, saying the organization manages roughly $200 million in assets and reported nearly a 2.8 multiple on invested capital over the last three years while the life‑of‑fund multiple is about 1.0. He said TEDCO’s portfolio holds about 150 companies and that the organization has $50 million in funds under strategic partnership. "We have about a $60,000,000 budget," he told the committee when asked about total funding.
Panelists described specific programs TEDCO operates: a concept capital pilot that places $25,000 into very early teams; seed and social‑impact funds that bridge to venture rounds; and venture investments aimed at pricing rounds and exits at later stages. Stovall also noted recent international fundraising and partnerships, citing a reported $50 million effort tied to Taiwan and a $6.5 million commitment from South Korea that is expected to help form a roughly $30 million fund for South Korea‑focused investment.
Committee members emphasized two policy problems: gaps in later‑stage capital and a lack of scaled manufacturing in Maryland. In response, Stovall said most companies that relocate do so for manufacturing capacity, talent or access to capital rather than taxes alone, and that TEDCO is pursuing ways to attract capital pools and manufacturing assets to the state. "We can make better investments in the manufacturing assets, and we can attract better capital," he said.
Several legislators pressed TEDCO on accountability and residency requirements. Stovall said TEDCO requires portfolio companies to maintain at least 51% of their employment base in Maryland or TEDCO may divest; he added that a statutory rule requiring immediate liquidation when a company moves outside the state had cost TEDCO "almost $10,000,000" over the last two years, and TEDCO is seeking authority to manage such dispositions for up to five years.
The briefing closed with invitations to follow up; the committee said bill hearings would begin at 1:30 p.m.
