Maryland and Indiana see growth from TBED investments

With a 20-year history, the Maryland Technology Development Corporation (TEDCO) is reporting an economic impact in 2021 four times greater than what they experienced in 2013. A new independent study found that its six core programs have provided “significant value” to the state’s start-up community, supporting over 10,000 jobs and more than $2 billion in statewide economic activity as of 2021. Meanwhile, BioCrossroads, a non-profit based in Indianapolis, has reported growth in its life sciences initiatives over the past 15 years. BioCrossroads conducts market research and promotes business and technological innovation in life sciences across Indiana. Both TEDCO and BioCrossroads have utilized public capital to develop industry within their respective target states.

Created by the Maryland General Assembly in 1998 to facilitate tech commercialization, TEDCO has supported the development and expansion of Maryland’s entrepreneurial and innovation driven economy through targeted programs that have grown the state’s economy.  Specifically, the organization was responsible for supporting 10,433 jobs and more than $2.3 billion in economic activity through the Maryland companies within TEDCO’s investment portfolio as of 2021, according to a new report completed by the University of Baltimore’s Jacob France Institute. This is a noticeable jump from the 7,746 jobs and $1.6 billion attributed to TEDCO in 2018, a 34.7 percent and 43.8 percent increase in each category over the course of three years.

The study found that TEDCO provides strong value to the entrepreneurial ecosystem of Maryland. The jobs supported by companies through TEDCO earned $885 million in labor income in 2021. These jobs also generated estimated revenues of over $100 million for state and local governments. For the state of Maryland specifically, the study reports an estimated revenue of $57 million.

TEDCO has supported the creation and growth of 366 active companies with 4,845 employees through the Maryland Venture Fund, the Seed Investment Funds, the Builder Fund, the Pre-Seed Rural Business Innovation Initiative Fund, the Maryland Innovation, Initiative Fund, and the Maryland Stem Cell Research Fund.

The BioCrossroads report finds the state of Indiana has seen notable growth in its life science industry in recent years. Through its three Indiana Seed Funds, BioCrossroads has invested more than $20 million in 32 startups in the life sciences industry. These companies have raised nearly $800 million in additional funding from other deals. Indiana Seed Fund I was launched in 2006 with $6 million in capital. This was followed by Indiana Seed Fund II in 2012 with $8.25 million in capital and Indiana Seed Fund III in 2018 with $9 million in capital.

Patty Martin, the CEO of BioCrossroads, mentioned that success in the life sciences industry “often takes anywhere from 10-20 years” and that life sciences startups may not be able to reach this success “without these seed fund investments”, according to an interview with Inside INdiana Business.

More information on TEDCO and its six core programs can be found here, and the study is available here. The report released by BioCrossroads can be found here.