Government Relations

Harnessing Maryland’s Experienced Investors to Help TEDCO

Sometimes small changes hold the key to creating a better entrepreneurial environment.  That is why MTC has spent some time this month in Annapolis talking to legislators about a small but significant change to the State’s primary start-up funding entity, the Maryland Technology Development Corporation (TEDCO).

TEDCO was launched in 1998 to help commercialize the results of scientific research from higher education institutions, federal laboratories, and private sector organizations.  It is a quasi-public entity providing investments for early stage technology businesses.  It also funds technology business incubators.  TEDCO has a financial interest in over 400 Maryland companies.

Currently, the Maryland ethics law has a blanket prohibition on a State official having a financial interest in any entity that has a contract with the State.  This directly impacts TEDCO’s Board of Directors.  This provision makes it almost impossible for TEDCO to attract experienced angel investors and venture capitalists to their Board.  TEDCO needs these experienced Marylanders to direct their operations in order to keep TEDCO on track toward its objectives.  Since TEDCO is often the first outside funding a startup receives, Maryland investors on the Board are “walled off” from helping these companies later grow beyond their early stage.

Senate Bill 973 and House Bill 1073 make narrow changes to current Maryland law allowing Board members to still be subsequent investors in TEDCO companies.  They maintain other ethics protections including not allowing Board members to use their Board position to influence TEDCO investment decisions.

Workforce Development

Premium Processing for H-1B Visas Suspended

Whether you are involved in recruiting technology workers or not, you’ve most likely heard of the H-1B visa. These visas are a way for specially skilled foreign workers to attain employment at U.S. companies and work in the country for a period of three years, and in some cases longer. The total visas allotted is capped at 85,000 per year and other criteria apply for both the employee and employer. If you had to guess how many Maryland H-1B applications were processed for Maryland companies in one year what would that number be? Five thousand? Eight thousand? If you’re thinking above 10,000, then you’re correct. According to the United States Department of Labor Foreign Labor Certification the numbers for 2015 show that 10,780 H-1B applications were processed and the top three cities requesting the visas were Baltimore, Columbia, and Rockville. Visas were requested most often for Computer Systems Analysts, Computer Programmers, Software Developers (applications), Computer Occupations (all others), and Software Developers (systems software). For an average wage, if you’re interested of $79,727.65. For comparison, California had 112,277 applications processed while our neighbors in Virginia had 18,821 applications processed.

Now, if you are involved in the visa process, you probably know that there are changes coming to premium processing. According to ICE, starting on April 3, 2017 USCIS will temporarily suspend premium processing for all H-1B petitions which may last up to six months. While H-1B premium processing is suspended, petitioners will not be able to file Form I-907, Request for Premium Processing Service or a Form I-129, Petition for a Nonimmigrant Worker which requests the H-1B nonimmigrant classification.

According to the ICE website:

Why the Suspension?

The temporary suspension will help them to reduce overall H-1B processing times. By temporarily suspending premium processing, they say they. “will “be able to process long-pending petitions which have currently been unable to process due to the high volume of incoming petitions and the significant surge in premium processing requests over the last few years. Additionally, they will look to prioritize adjudication of H-1B extension of status cases that are nearing the 240-day mark.

Who Is Affected

The temporary suspension applies to all H-1B petitions filed on or after April 3, 2017. Since FY18 cap-subject H-1B petitions cannot be filed before April 3, 2017, this suspension will apply to all petitions filed for the FY18 H-1B regular cap and master’s advanced degree cap exemption. The suspension also applies to petitions that may be cap-exempt.

Requesting Expedited Processing

While premium processing is suspended, petitioners may submit a request to expedite an H-1B petition if they meet the criteria including:

  • Severe financial loss to company or person
  • Emergency situation
  • Humanitarian reasons
  • Nonprofit organization whose request furthers the cultural and social interests of the United States
  • Department of Defense or national interest situation (These particular expedite requests must come from an official U.S. government entity and state that delay will be detrimental to the government.)
  • USCIS error
  • Compelling interest of USCIS

ICE says that they will notify the public before resuming premium processing for H-1B petitions, so check their website for updates – bit.ly/2mkUwQk.

Sources:

U.S. Citizenship and Immigration Services – bit.ly/2mkUwQk

United States Department of Labor, Office of Foreign Labor Certification – bit.ly/2lUgQnD 

Capital

Crowdlending – Another Source of Funding for Small Businesses

Now you really can do almost everything on the Internet. With the rise of crowdsharing, crowdfunding, and crowdsourcing comes crowdlending. Most often called peer-to-peer lending, it’s a way for individuals and businesses to get loans online relatively quickly and easily. Online lending platforms facilitate funding the loan through institutions directly and from individuals who’ve decided to invest, so they eliminate the middle man—the banks. After the borrower submits an application, it’s graded and then some platforms post the application for a few weeks to let investors review it to determine if they want to invest. Other companies have a pool of blind investors that they draw money from which expedites the process. The draw of online lending is that the borrower pays lower interest rates than they would from traditional lending institutions, while the lenders receive fixed returns at higher rates. Peer-to-peer lending may be right for funding your business or may even help with personal loans as well. Loan amounts vary but average between $3,000 – $500,000 and terms are typically about 3-5 years.

Here is an overview of some of the top platforms.

Kabbage – http://www.kabbage.com/

  • Should be in business for one year and have $50,000 in annual revenue or $4,200 per month over the last three months
  • Offers unsecured small business loans, secured small business loans, industry-specific loans, and minority loans
  • Offers business lines of credit up to $100,000  

Lending Club – http://www.lendingclub.com/

  • Focused on small businesses that have been in business for at least two years
  • Offers business loans and lines of credit from $5,000 – $300,000
  • Loans are funded as fast as two days but typically take a week or two

Upstart – http://www.upstart.com/

  • Offers business and personal loans from $1,000 – $50,000
  • Terms are offered at 3 and 5 years
  • Consideration based on FICO score, years of credit, education, area of study, and job history 

Prosper – http://www.prosper.com/

  • Offers one of the lowest beginning APR rates available
  • Loans are capped at $35,000
  • Offer a variety of personal options for debt consolidation, home improvement, auto, green, adoption, and military loans

Funding Circle – www.fundingcircle.com

  • Focused on small businesses that have been in business for at least two years
  • All loans are secured and range from $25,000 – $500,000 over 1-5 years
  • Loans are funded in about 10 days

Does it sound like it’s for you? Since many of the platforms require minimum FICO scores of about 600, it’s often a good alternative to asking friends and relatives for money, using traditional bank loans, or using credit cards. Many of the platforms are transparent about their terms, and if you have questions most of them offer multiple options for contacting their customer service representatives.

 

Mentoring Services

Grow your future with the Maryland Tech Council Venture Mentoring Services Program (MTC VMS.) Get involved with our team-based mentoring program modeled after the highly-successful MIT Venture Mentoring Service (now implemented in more than 60 communities around the globe).

The ultimate goal of our program is to bring employment opportunities and capital to our area in the technology and life sciences fields by mentoring early stage companies.

We seek an intern to contact MTC VMS entrepreneurs and their mentors to schedule face to face meetings of the teams. The intern will also assist in gathering and organizing entrepreneur data, collecting and updating metrics, social media postings and preparing for monthly mentor breakfast meetings.

The intern will have the opportunity to network with local technology and life science CEO mentors and entrepreneurs. Due to the competitive nature of information collected and discussed at mentor-mentee meetings, all information collected, including information on the companies, topics of discussion, and content and individuals in attendance at meetings, is confidential and a signed confidentiality agreement may be required.

For more information about the program, visit our website at http://mdtechcouncil.com/careers/mentor-opportunities-new.php

Member Spotlight

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MagBio Genomics

MTC member MagBio Genomics recently launched two new products, so we visited with their CEO, Hyacinth Ntchobo, at their office in Gaithersburg.


Give us an overview of MagBio Genomics.

Our company develops and commercializes magnetic bead-based products for nucleic acids isolation including biomarkers as tools for liquid biopsy.

We’re focused on products that allow both safeguarding integrity of bio-samples and efficient isolation of circulating biomarkers from biological samples for human genetic research including cancer studies and non-invasive prenatal testing (NIPT). Our core platform allows efficiency in the nucleic acids sequencing methods including Sanger and Next Generation Sequencing in both manual and automated work flow. Our customers are academic and private genomics research institutions and clinical genomic research institutions around the world.


The company just launched two new products, tell us about that and some of your other products.

Yes, we launched the Blood STASIS 21-ccfDNA tube for venous whole blood collection and room temperature stabilization of circulating cell-free DNA. The tube is a direct draw whole blood collection system that contains a proprietary reagent that prevents post-collection release of genomic DNA from white blood cells. It allows room temperature transport and storage of blood for 21 days and epithelial cell for 8 days. Other blood stabilization systems contain potential formaldehyde-releasing compounds, making them unsuitable for many liquid biopsy applications and limiting room temperature blood stabilization to only 10 days. Another feature of our product is that the tube is plastic, which makes it less susceptible to breakage. The features of Blood STASIS 21-ccfDNA tube significantly expand the range of liquid biopsy applications such as NIPT and cancer genomic assays and improve operational efficiency, reduce costs, and enhance outreach for receiving samples on local and international levels.

We also just launched the cfKapture 21 system. This is a circulating cell-free DNA (ccfDNA) isolation kit which includes a proprietary reagent that prevents post-separation degradation of plasma and ccfDNA fragments for up to 21 days at room temperature. This feature allows laboratories to safely transport and process samples within a much longer time frame without the need for extensive cold chain, which in turn reduces cost, improves efficiency, and increases outreach for both local and international samples. cfKapture 21 is the only kit on the market able to provide this level of flexibility for processing plasma samples in a high throughput setting.

The cfKapture 21 kit is compatible with any whole blood collection tube. However, it is best used in combination with our Blood STASIS 21-ccfDNA tube to ensure recovery of the highest quality ccfDNA suitable for most liquid biopsy applications.

We also sell products in the categories of next-generation sequencing kits, Sanger sequencing kits, DNA/RNA purification kits, and magnetic separation devices.

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Give us some insight into the company.

The company started five years ago, and we really turned a corner in 2015. We’ve been in high growth mode since that time. We moved into our Gaithersburg office in June of last year, and now we are getting into R&D so that we can bring more products to the market.

Currently, we have seven employees, and we will be looking to expand our sales team within certain channels in the near future. Like I mentioned, we are in a high-growth mode, so we are looking for an experienced sales executive to lead the team.


20170227_115513Who should members contact with questions?

They can call me directly at (301) 302-0144 x311 or email me at h.ntchobo@magbiogenomics.com.

 

Cost Savings Program

Have you checked out the Cost Savings Program? It’s open to ALL MTC MEMBERS in good standing. There is no charge to use the program and you can use one, some or all of the special pricing arrangements offered through the program. Every company type and industry can benefit from the available savings.

ILLUMINA  |  UPS  |  VWR  |  CHUBB  |  OFFICE DEPOT  |  BUSINESS WIRE
AON  |  UNIFIRST  |  UNICLEAN  |  CLEANHARBORS  |  SHAREVAULT
AIRGAS HEALTHCARE  |  NIKON

The discounted prices and value added features available to you are based on the total volume of the program, giving you the purchasing power of the largest companies in your industry.

Your exact savings will depend on which programs you use as well as other factors, such as product mix, frequency and volume of purchases.

  • You decide which individual programs make sense for your company. Use one, some or all of the programs. The choice is yours.
  • The individual cost-savings programs do not restrict your purchasing selection to a short list of obscure “close out” items. In most cases, the full selection of products and services offered by a supplier are available to you at a discounted price. You do not have to change the way you do business to enjoy discounts and other benefits. In fact, you can request a pricing analysis of your current spend to determine the most economical alternative for your company, without any obligation to join the program.
  • I already use one of the preferred suppliers. How do I get the discounted pricing? Simply contact the Maryland Tech Council or the provider and inform them that you would like to enroll and take advantage of their cost-savings program. A previous customer relationship with the partner does not affect your eligibility to use our program.

To learn more, enroll and see the actual member savings, visit our website at  http://www.mdtechcouncil.com/membership/savings-mtc.php

 

MTC Highlight

Showcase Your Innovation at the BIO International Convention in San Diego, June 19-22, 2017 in the Maryland Pavilion!

The BIO International Convention (BIO 2017) attracts 16,000 biotechnology and pharma leaders who come together for one week of intensive networking to discover new opportunities and promising partnerships. The conference brings together a wide spectrum of life science and application areas including drug discovery, biomanufacturing, genomics, biofuels, nanotechnology and cell therapy.

Exhibiting in the Pavilion gives you the opportunity to represent your company and Maryland’s innovative life sciences industry while you make valuable business contacts with other life science companies and investors. Maryland’s booth is in a prime location on the exhibit floor, and the space comes at a fraction of the cost. The purchase of your space will include a ticket to Maryland’s reception, leadership breakfast, use of private and open meeting spaces, logo/video on the main stage of the Maryland pavilion, and so much more!  To secure your space, please contact Michelle Ferrone at michelle@mdtechcouncil.com.

Cost Savings Program

The Maryland Tech Council is excited to announce a NEW Best-in-Class Cost-Savings Program for Shipping Services with UPS. 

MTC member companies currently enrolled in the old FedEx program can expect to see additional savings of 10%-20% just by switching to UPS.   Take action and ENROLL NOW or click here for more information.  The  Maryland Tech Counncil uses the buying power of the entire industry to deliver to every member—as a FREE benefit—exclusive deep savings and premier services from UPS.  The special pricing and benefits include:ups

Mentoring Services

Grow your Future with the Maryland Tech Council Venture Mentoring Services Program

The program is based on a team mentoring approach modeled after the highly-successful MIT Venture Mentoring Service which has been implemented in more than 60 communities around the globe.  The results have been stunning in terms of capital raised, job growth and company survival.  Mentors and mentee companies participate by invitation.  There is no fee to the mentee company for the mentoring program.

The ultimate goal of the program is to bring employment opportunities and capital to the area in the technology and life sciences fields by helping companies to grow faster. MTC VMS will provide mentoring services to Maryland tech and life sciences companies with a demonstrated proof of concept that are preparing for their first venture or institutional financing.

We are seeking mentee company candidates that meet the parameters for the mentor program.

Prospective mentees generally should have:

  1. A “tie” to Maryland;
  2. A tech or biotech product or service with proof of concept established in someway;
  3. At least one full time employee (presumably, the CEO);
  4. A direction towards obtaining “series A investments”

For more information or to apply online, click here.

Workforce Development

The State of Maryland Jobs Initiative Package

It’s still early in the year, but the State of Maryland has announced a jobs initiative package that lays out incentives for job creation, STEM education, cyber training grants, and workforce development. A press release issued by the Office of Governor Larry Hogan outlines details of the package below.

As the centerpiece of Governor Hogan’s Maryland Jobs Initiative, this proposed legislation will aim to create thousands of jobs where they are needed most by eliminating all state taxes for ten years for new manufacturing employers that create jobs in high unemployment areas. To encourage existing Maryland manufacturers to add more jobs in these targeted employment zones, the governor’s proposal provides a tax credit for any new jobs they create. It also enables these companies to accelerate the deductions of their capital assets to free up capital for investment in new technology needed to create the jobs of the future. Qualifying jurisdictions currently include Baltimore City and Allegany, Dorchester, Somerset, and Worcester counties.

P-TECH Expansion: Governor Hogan announced additional investments to open six new Pathways in Technology Early College (P-TECH) high schools throughout the state, as well as funding to support students currently enrolled at existing P-TECH schools. P-TECH, co-developed by IBM, is an innovative, nationally recognized education model that blends high school, college, and work experience into one innovative program where graduates obtain a two-year associate degree in a STEM career field at no additional cost. P-TECH Dunbar and P-TECH Carver, both located in Baltimore City, opened for the 2016-17 school year.

Maryland Partnership for Workforce Quality: The governor announced a $1 million investment for this program to encourage businesses to invest in employee training, ultimately making Maryland more competitive by ensuring that the state’s workforce has access to the most up-to-date skills needed in an ever-changing job landscape.

Cyber Jobs Training Grants: The Hogan administration will make a $3 million investment to provide funding for cyber job training grants, modeled after Maryland’s nationally recognized Employment Advancement Right Now (EARN) workforce training program. More than 1,700 unemployed or underemployed workers have received training through the EARN program, and this cyber-specific EARN grant will address skills gaps in growing industries like security engineering and software development to provide the qualified workforce needed to continue growing Maryland’s vibrant cyber industry.

Cybersecurity Investment Incentive Program: This proposal improves an existing program by making tax credits accessible to investors in cybersecurity startups. Modeled on Maryland’s successful biotechnology tax credit, this initiative will continue to grow Maryland’s cybersecurity community, support small businesses, and incentivize investment in innovation.