The MDC-Verte Impact Fund Operational
The MDC-Verte Impact Fund, a joint initiative between the MDC-Studio (of Baltimore, MD) and the Verte OZ Fund, Inc (of College Park, MD), will focus on providing capital to support innovation in the earliest stages of development. Capital in the early stages from Friends and Family through Seed 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 opportunity zones 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. Opportunity Zone (OZ) investments are commonly utilized by real estate developers; however, the statute also supports investments in companies in OZs.
The MDC-Verte Impact Fund will be operated as an Opportunity Zone investment fund, focusing on MDC client companies. MDC and all its resident client companies are located in a Baltimore OZ. Opportunity Zone investments convey significant tax savings for capital gains. In addition the State of Maryland provides enhanced incentives for investments in companies located in Maryland Opportunity Zones.
"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 the 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 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 University where MDC’s founding partners and affiliates practice, teach, and research state of the art surgery and medicine.
About Verte Fund
The Verte OZ Fund, Inc., College Park MD, the second fund 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. Ultimately, the Verte OZ portfolio will be diverse and comprised of many companies nationwide.
Unlike most Opportunity Zone Funds, Verte OZ is designed to appeal to a broad array of investors, including those with realized capital gains, tax-advantaged (IRA), and taxable investments. Verte Opportunity Fund is currently open to investors who are interested in taking part in impactful venture capital opportunities.