Launched in 2016 with a $10 million commitment from the University System of Maryland (USM), the Maryland Momentum Fund invests in USM-affiliated companies to support entrepreneurism, catalyze outside investment in early-stage startups, and foster economic development and technology commercialization.

A pre-seed to late-seed stage investment fund, the Maryland Momentum Fund helps promising early-stage companies bridge from grant funding and angel investment to a Series A round of investment.

The value of the Momentum Fund lies in its multifold purpose (outlined below in order of importance):

• Catalyzing investment in early stage start-ups in Maryland and providing funding alongside other sources of private capital.

• Generating financial returns to reinvest in future startups.

• Accelerating the success of USM startups and providing a bridge to larger financing opportunities.

• Expanding economic development in Maryland.

• Recruiting and retaining innovative students and faculty for USM institutions.

• Supporting the development of key sectors of Maryland’s innovation ecosystem and USM’s Centers of Excellence.

Eligibility Criteria:

1. MARYLAND-BASED. The company must be located in Maryland and provide positive economic impact to the State of Maryland. They also must be in good standing in the State of Maryland.
2. USM AFFILIATION. The company must be affiliated with the University System of Maryland (USM) in one of the following ways: Have a founder or inventor (a substantial equity holder on par with the other founders) who is an employee, alum, or student from one of the 12 USM institutions; Based on intellectual property (IP) from a USM institution; Located in a USM research park, incubator, or RISE zone.
3. CO-INVESTOR REQUIREMENT. The company must secure equal or greater investment by a third party investor or group of investors at the same commercial terms as the Momentum Fund. Additional investment does not have to be secured prior to applying to the Momentum Fund, but must be secured within six months of Momentum Fund approval.

The Maryland Momentum Fund is committed to diversity, equity, and inclusion in investing. The Fund strengthens the USM’s incredibly diverse entrepreneurial community by eliminating some of the barriers in access to capital while simultaneously supporting USM’s entrepreneurs on their journey. We are dedicated to growing diversity in our investment portfolio. If you are interested in receiving funding, or if you would like to start a conversation, please complete a funding application.

The Momentum Fund looks for the following in an initial pitch deck. These investment factors may be industry dependent.

• Market traction and validation

• A strong management team (that is coachable)

• Excellent, unique business idea/technology

• Clear, actionable milestones along with clarity that past milestones have been hit and future milestones will be hit

• Clear, concise goals (i.e. what five things will be worked on in the next 12 months)

• Good partners

• Ability to attract follow-on investment

• Clear potential exit in an industry-appropriate time frame

• Clarity on the risks and proof that they will be mitigated

• A valuation cap of less than $15 million

• Evidence of solid operating principles and practices

• A sustainable, defensible competitive advantage

An introductory pitch deck should provide all of the following information:

• Company Overview: High level overview of the company and what it is addressing.

• Problem Solved: Detail about the problem the company is addressing, how it is uniquely positioned/qualified to solve it, and why this matters

• Total Addressable Market: Information about the market that exists for your company. Should include market size (i.e. population size addressed or number of companies addressed) as well as dollar value. This should be one slide max. If you have a lot of slides/information about market size, but not much on your product or service, you likely don’t have enough progress on your progress or service.

• Market Traction: Information about any traction the company has to-date (i.e. detail about existing projects installed, SBIR funding received, etc.)

• Partners: List of existing partners (who is giving you credibility?)

• Company Timeline: A chronological timeline of what has been completed, what is in progress, and what is anticipated in the near future. This should include the following categories: Company, Regulatory, Financing, Projects (a table with rows for each category is a common format)

• Management/Team: Highlight of the management team’s experience (years of experience, industry, unique capabilities, etc.)

• Funding: How much you are raising now and how much has been raised to-date (including non-dilutive grant funding)

• Use of Funds: Very specific breakdown as to how funds from this round will be used

• Competition: Overview of your competition

• Risks: Outline of the risks your company faces

• Intellectual Property: If the company holds any intellectual property, please include that information

• Exit: Information about a potential exit, including anticipated timeline

INVESTMENT CRITERIA:

In most cases, the Momentum Fund will make investments in the range of $150,000 to $250,000, with a maximum of $500,000. These investments are equity purchases or notes that are convertible into equity.

The Managing Director of the Fund will seek quality investment opportunities from all USM institutions.