The Maryland Technology Development Corp. has established a $1 million fund to invest in startups launching new cyber security technologies, officials announced Wednesday.
Eligible Maryland companies will be able to apply for investments of up to $100,000 from the new Cybersecurity Investment Fund. The money must be put toward development of any processes or mechanisms to protect networks and devices from unauthorized access, attacks or destruction, as well as from natural disasters.
Companies must be based in Maryland and have fewer than 16 full-time employees, and must either have zero sales or have received less than $500,000 in outside investment.
The money will be provided in the form of a loan with 8 percent interest, and it may be converted into an equity stake in the company if the company receives outside investment worth $500,000 or more.
"TEDCO's Cybersecurity Investment Fund will be an excellent addition to the outstanding array of resources we have dedicated to the information security industry," Gov. Martin O'Malley said in a statement. "It's also an important tool to help stimulate growth of promising young companies that are combating today's cyber threats, creating new jobs and spurring growth in Maryland's Innovation Economy."
Applications will be accepted once a month and will undergo a two-month review process.
The fund was formed with state money. TEDCO is a quasi-public organization, founded by the Maryland General Assembly and receiving state funds but operating independently.
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