A fund built to reach companies before anyone else does.
MDC-Verte Ventures is a joint initiative of MDC Studio and the Verte Opportunity Zone Fund, providing capital at the earliest stages of a company's development.
The fund
Bridging idea and institution
The MDC-Verte Venture Fund, a joint initiative between MDC Studio and the Verte Opportunity Zone Fund, focuses on providing capital to support innovation in the earliest stages of a company's development.
Acquiring early capital from friends and family and from angel investors is often a limiting factor in launching a technology company — especially a medtech startup, given the resource-intensive nature of medical technology innovation. The Fund focuses on the early stages of a company's development to bridge the gap between idea and traditional forms of later-stage investment funding.
We are glad to complement non-dilutive funding from federal and state agencies, and firmly believe that such funds should be part of a new technology company's base.
Opportunity Zones
Where the statute goes unused
MDC-Verte invests in companies — especially medtech companies — located in Opportunity Zones. Federally designated Opportunity Zones are found throughout the United States and include many locations near research centers. Companies receiving investment in these historically economically distressed zones have a commitment to creating jobs, fostering innovation and having a social impact in the area.
Investors in Qualified Opportunity Zone Funds can defer capital gains taxes for a period of several years, and may be able to avoid them altogether.
Opportunity Zone investments are commonly utilized by real estate developers; the statute also supports investments in operating companies in OZs. Even so, less than 4% of OZ investments go to companies, and only a very small percentage of that goes to startups. This is the MDC-Verte Fund's target market.
Certain other advantages accrue to investors in Opportunity Zone funds. The State of Maryland has a Biotechnology Investment Incentive Tax Credit (BIITC) program that may match 65% or even 75% of an investor's money in the Fund.
The BIITC is based on a lottery system, and not every investment receives the match. MDC-Verte investments have received the match each time we have applied.
Our partners
Two organisations behind the fund
MDC Studio
The MDC Studio is the operational unit of the Maryland Development Center Partnership, founded in 2016 in Baltimore. It functions as a medtech startup studio providing engineering support, business development services and funding to create and support companies commercialising medical devices.
The Studio works with inventors to develop ideas into working prototypes and marketable products, and forms companies that grow and create value for shareholders and society. It is located in the historic Wilkens-Robins building near the University of Maryland Medical Center and Johns Hopkins University, where MDC's founding partners and affiliates practise, teach and research.
Verte OZ Fund
The Verte OZ Fund, Inc. of College Park, Maryland, managed by Dr. Leonard Mills, is a Qualified Opportunity Fund investing in high-growth small businesses impacting Opportunity Zones.
The Verte OZ Fund aims to have a positive economic impact on communities, grow the entrepreneurial ecosystem and provide attractive returns for investors. Unlike most Opportunity Zone funds, Verte OZ is designed to appeal to a broad array of investors, including those with realised capital gains, tax-advantaged (IRA) and taxable investments.
Where the inventions come from
MDC Studio portfolio companies are based on inventions from the University of Maryland and Johns Hopkins schools of medicine, the Henry Jackson Foundation, Cooper University and MDC's own staff.
MDC Studio's founders include six surgeons, two neurologists and one engineer-entrepreneur; eight are faculty at the University of Maryland School of Medicine. Affiliates come from the UM School of Medicine and from JHU bioengineering and School of Medicine.
Let's talk
Whether you are an investor exploring Opportunity Zone funds or an inventor with an idea, we would like to hear from you.