BALTIMORE (PRWEB)
August 04, 2021
The MDC-Verte Impact Fund, a joint initiative between the MDC Studio (of Baltimore, MD) and the Verte Opportunity Zone (OZ) Fund, Inc (of College Park, MD), will focus on providing capital to support innovation in the earliest stages of development. Capital at the early stages from “friends and family” through seed round is often a limiting factor in launching a medtech startup due to the resource-intensive nature of deep-tech innovation. The MDC-Verte Impact Fund focuses on the early stages to bridge the gap between idea and traditional VC funding.
Federally designated OZs are found throughout the United States, and include many locations in Maryland. Startups located in these historically economically distressed zones have a commitment to creating jobs, fostering innovation, and creating social impact in the area. OZ investments are commonly utilized by real estate developers; however, the statute also supports investments in companies in OZs.
The new fund will be managed by Dr. Deborah Hemingway PhD, Dr. Leonard Mills PhD, and MDC Partner, Dr. Jonathan Pearl MD.
The MDC-Verte Impact Fund will be operated as an OZ investment fund, focusing on MDC client companies. MDC and all its resident client companies are located in a Baltimore OZ. OZ investments convey significant tax savings for capital gains. In addition, the State of Maryland provides enhanced incentives for investments in companies located in Maryland OZs.
“With its commitment to very early-stage companies, the MDC-Verte Impact Fund addresses a critical gap in the creation and growth of new MedTech companies. It is very difficult to obtain funding for new companies. The State and Federal Government are the best ‘early stage’ investors, but the grant process is slow and uncertain. Conventional investors nearly always want to see revenue or regulatory approval. It can take a company several years to achieve these milestones. The Impact Fund will allow investors to participate in the company creation process, risking relatively modest amounts of capital on promising ideas and teams. This is the essence of the MDC Studio model. Let’s replace the timid, ‘you’re too early for us,’ with the bold, ‘we want to be in at the beginning,'” said Dr. Gil Blankenship, CEO of MDC.
About the MDC Studio
The MDC Studio is the operational unit of the Maryland Development Center Partnership, which was founded in 2016 in Baltimore, Maryland. MDC Studio functions as a MedTech Startup Studio that provides engineering support, business development services, and funding to create and support companies commercializing medical devices. The Studio works with inventors to develop their ideas into working prototypes and marketable products, and form companies that will grow and create value for both their shareholders and all of society. MDC Studio-Baltimore is located in the historic Wilkens-Robins building in the heart of Baltimore, near the University of Maryland Medical Center and Johns Hopkins Hospital, where MDC’s founding partners and affiliates practice, teach, and research state-of-the-art surgery and medicine.
About the Verte OZ Fund
The Verte OZ Fund, Inc of College Park, MD, the second fund managed by Dr. Leonard Mills, is a Qualified OZ Fund investing in high-growth, small businesses impacting OZs. The Verte OZ Fund aims to have a positive economic impact on communities, grow the entrepreneurial ecosystem, and provide attractive returns for investors. Ultimately, the Verte OZ portfolio will be diverse and comprised of many companies nationwide.
Unlike most OZ Funds, the Verte OZ Fund is designed to appeal to a broad array of investors, including those with realized capital gains, tax-advantaged (IRA), and taxable investments. The Verte OZ Fund is currently open to investors who are interested in taking part in impactful venture capital opportunities.
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