About the MMF | Maryland Momentum Fund

Program Overview

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

The Maryland Momentum Fund is open to all companies, regardless of technology or sector, but companies must meet the following minimum qualifications to be eligible to be considered for investment.

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.

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.

CO-Investor Requirements

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.

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.

In addition to the eligibility criteria, the Momentum Fund may also consider the following investment factors (depending on the industry):

Ability to attract follow-on investment
Significant market validation (note: life sciences may not have this criteria met)
A strong, coach-able management team
Clear, actionable milestones
A planned or projected exit in an industry-appropriate time frame
A valuation or valuation cap of less than $10 million
Evidence of solid operating principles and practices
Sustainable, defensible competitive advantage
If a scientific investment, evidence of receipt of non-dilutive funding

Additional Support

USM is dedicated to supporting entrepreneurs affiliated with the System. Companies that do not receive investment or are not yet ready to apply to the Maryland Momentum Fund can work with the Office of Economic Development to obtain support (i.e., access to entrepreneurs in residence, patent and intellectual property support, and more). Explore the Resources for Startups and Small Businesses database to find resources available through USM institutions.

Please reach out to Lindsay Ryan, Venture Development Director, for more information or assistance.