2013 Maryland Code
ECONOMIC DEVELOPMENT
§ 6-518 - Venture firm certification

§6-518.

(a) In selecting applicants for venture firm certification, the Authority shall consider:

(1) the management structure of the applicant, including:

(i) the investment experience of the principals;

(ii) the applicant’s reputation in the venture firm industry and the applicant’s ability to attract co-investment capital and syndicate investments in qualified businesses in the State;

(iii) the knowledge, experience, and capabilities of the applicant in subject areas relevant to venture-stage businesses in the State; and

(iv) the tenure and turnover history of principals and senior investment professionals of the applicant;

(2) the applicant’s investment strategy, including:

(i) the applicant’s track record of investing in venture-stage businesses;

(ii) the applicant’s history of attracting co-investment capital and syndicate investments;

(iii) the soundness of the applicant’s investment strategy and the compatibility of that strategy with business opportunities in the State; and

(iv) the applicant’s history of job creation through investment;

(3) the applicant’s commitment to making investments, that to the fullest extent possible:

(i) create employment opportunities in the State;

(ii) lead to the growth of the State economy and qualified businesses in the State;

(iii) complement the research and development projects of State academic institutions; and

(iv) foster the development of technologies and industries that present opportunities for the growth of qualified businesses in the State; and

(4) the applicant’s commitment to the State, including:

(i) the applicant’s presence in the State through permanent local offices or affiliation with local investment firms;

(ii) the local presence of senior investment professionals;

(iii) the applicant’s history of investing in venture-stage businesses in the State;

(iv) the applicant’s ability to identify investment opportunities through working relationships with State research and development institutions and State-based businesses;

(v) the applicant’s relationship with other venture firms in the region;

(vi) the applicant’s history of investing in areas relevant to venture-stage businesses in the State; and

(vii) the applicant’s commitment to investing a similar or greater amount of designated capital received under this subtitle in State-based ventures and qualified businesses.

(b) (1) An applicant shall file an application with the Department in the form required by the Department.

(2) The application shall include the applicant’s most recent financial statements.

(3) The Department shall begin accepting applications for certification on or before January 1, 2012.

(4) An application for certification may not be accepted after May 1, 2012.

(c) To be certified as a venture firm:

(1) the applicant must have, at the time of application, an equity capitalization, net assets, or written commitments of at least $500,000 in the form of cash or cash equivalents; and

(2) at least two principals or persons employed to direct the investment of the designated capital of the applicant must have at least 5 years of money management experience in the venture capital or private equity sectors.

(d) Not later than 90 days after an application is filed, the Secretary shall either:

(1) issue the certification; or

(2) refuse to issue the certification and communicate in detail to the applicant the grounds for the refusal.