MDC-Verte Venture Fund

The MDC-Verte Venture Fund, a joint initiative between the 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 angel investors is often a limiting factor in launching a technology company, especially a medtech startup, due to the resource-intensive nature of medical technology innovation. The MDC-Verte Venture 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 delighted 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.

MDC-Verte Ventures invests in companies, especially medtech companies, located in Opportunity Zones (OZ). Federally-designated opportunity zones are found throughout the United States and include many locations near research centers. Companies receiving investment located 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 all together. More information is available here.

Opportunity Zone investments are commonly utilized by real estate developers; however, the statute also supports investments in companies in OZs. Even so, less than 4% of OZ investments go to companies, and only a very tiny percentage goes to startup companies. This is the MDC-Verte Fund's "target market."

Certain other advantages accrue to investors in Opportunity Zone Funds. For example, 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.)