Criteria for Investment

MHCPDC's mission is to find and assess early stage opportunities not targeted by traditional Venture Capitalists. To be funded by MHCPDC these companies must meet a stringent set of criteria. Companies evaluated by MHCPDC undergo a three stage process.

Investment Criteria
MHCPDC performs a preliminary technical; market and business plan review against the following criteria.

  • Market size of greater than $250 million annually
  • Regulatory status with FDA
  • Realistic opportunity for market penetration; interest of licensee/partner
  • Stage of development
  • Broad based technology, able to enter multiple markets or develop multiple products for same market
  • Market competition
  • Strong intellectual property
  • Business team with industry experience
  • Strong technical team
  • Maryland-based company

Detailed Market and Technical Due Diligence
Once a company has been judged (on a preliminary) to meet the corporation's criteria by both MHCPDC Board of Directors, MHCPDC performs a comprehensive analysis on each investment candidate.

  • In-depth market assessment including existing and potential competing products
  • Technical analysis on each project and on the competing technologies available in the market
  • Intellectual property assessment
  • Corporate and legal due diligence

Investment Transaction
Following a presentation to MHCPDC's Board of Directors and its investment approval, MHCPDC works with the investment candidate to structure a deal meeting MHCPDC's criteria and customized to the investee's needs. The corporation is flexible in the nature and form of investment and develops with the candidate a fair, detailed valuation. MHCPDC actively pursues matching investment dollars from commercial and state funders and, where necessary, assists the candidate in strengthening its management team.

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