Posted March 16, 2017
USM Launches $25 Million Maryland Momentum Fund to Back Start-Up Companies Formed from Campus Research
To increase new company creation and commercialization of its leading-edge research, the University System of Maryland (USM) is launching a $25 million early-stage investment fund to be known as the Maryland Momentum Fund.
The money-raising process for start-up companies typically is an uneven one. Therefore, the Maryland Momentum Fund will concentrate on filling gaps in the funding pipeline to push USM's most innovative ideas into the marketplace.
With a $10 million commitment from the USM already in place, the system is collaborating with UM Ventures and the University of Maryland, Baltimore County (UMBC) to reach out to area venture capitalists and angel investors for an additional $15 million. UM Ventures is a joint initiative of the University of Maryland, Baltimore (UMB) and University of Maryland, College Park (UMCP) to commercialize technologies and expand industry collaboration.
As it approaches the $25 million level, the Maryland Momentum Fund will leverage this financial support to achieve several objectives:
- Accelerate the success and profitability of USM start-ups;
- Attract promising entrepreneurs and innovators to USM institutions;
- Seize the opportunity to commercialize valuable USM intellectual property;
- Develop long-term financial returns that can be reinvested in future startups affiliated with the USM.
"The launch of the Maryland Momentum Fund is a critical step in advancing the commercial viability of start-up companies formed through the innovative research at USM institutions," said USM vice chancellor for economic development J. Thomas Sadowski. "This fund will help our entrepreneurs address funding gaps, access to other sources of investment capital and gain marketplace footing, further enhancing the system's high impact on the Maryland economy."
Read the full article from the University System of Maryland.