TEDCO Moves Maryland’s Funding Needle Toward Gender Inclusivity

United States venture capital funders are realizing the value of female founders. A recent Pitchbook report paints a promising picture: investments in women-led startups nationwide reached a record high in 2023, with a staggering 30% increase from the previous year. Maryland is leading the charge of this national movement, where $2.2B has been invested in 549 deals with female-founded organizations. Investors like TEDCO are pivotal in fostering an ecosystem that empowers women entrepreneurs.

Even with these strides toward progress, the reality is that women-led businesses continue to face significant funding hurdles. According to Pitchbook, in 2023, only 2.1% of all venture capital went to female founders. This persistent gender gap not only hinders individual businesses but also stifles innovation and economic growth.

A Call to Action: The Gender Funding Gap

Maryland ranks as the second best state for women based on employment and earnings according to 2023 research. Additionally, the 2023 Maryland Small Business Economic Profile shows that 251,583 businesses in the State are owned by women; however, women continue to lag behind men in the accessibility of leadership roles throughout the country.

Recognizing this disparity, TEDCO has made integrity and inclusion standards a core pillar of its mission.

Katherine Hill Ritchie, TEDCO’s senior director of Venture Funds, emphasizes the organization’s commitment: “TEDCO understands that fulfilling our mission of enhancing economic empowerment in Maryland can only happen when we invest in Maryland entrepreneurs of all backgrounds and genders. Initiatives like our Institute for Women Entrepreneur Excellence level the playing field and ensure women have the resources and support they need to turn their visions into reality.”

Building the Bridge: TEDCO’s Initiatives for Women Entrepreneurs

TEDCO’s multifaceted approach to supporting women entrepreneurs encompasses a range of programs and resources. Here’s a glimpse into some of the key initiatives:

• Community Creation: TEDCO’s outreach initiatives, events and other marketing collateral connect women leaders with opportunities and resources, allowing for the creation of a unified community of support for innovative women across the state. These connections and opportunities in the past have included organizations like Women in Bio Capital Region and the Maryland Women’s Business Center.
• Funding Programs: Recognizing the crucial role of capital, TEDCO offers grant and investment programs specifically designed for underserved founders including women-led startups. These dedicated initiatives including TEDCO’s Social Impact Funds provide financial resources alongside mentorship and guidance, empowering women to navigate the funding landscape effectively.
• Mentorship and Coaching: Mentorship is a powerful tool for accelerating business growth. TEDCO facilitates connections between experienced women entrepreneurs and aspiring founders, fostering knowledge sharing and building valuable networks. TEDCO’s Institute for Women Entrepreneur Excellence has built an alliance of diverse founders and CEOs to enable promising women business leaders to focus on unique challenges for female entrepreneurs and as they navigate Maryland’s entrepreneurial innovation ecosystem and raise economic standards for all.
• Workshops and Training: TEDCO offers workshops and training programs through their Venture Development department such as IPGen, Market Search, Network Advisors and more. These programs can be tailored to fit the needs of each individual, allowing women entrepreneurs to expand their network and knowledge while also advancing their business.

The Impact: Empowering Women, Strengthening Maryland’s Economy

TEDCO’s dedication to gender inclusivity is already yielding positive results. Crystal Berger, founder of EBO Corp., a TEDCO portfolio company, highlights the impact on their goals: “Equity is a business imperative, not a DEI-play. Companies with diverse leadership teams, including Black women, are 21% more likely to outperform their peers in terms of profitability, according to McKinsey and Company. For me, it’s a numbers game and diverse leadership fosters innovation, better decision-making and at the end of the day, improved financial performance – meaning the numbers. Funds that invest in diverse founders and communities, like TEDCO does, make the numbers, period.”

Sarah Iranpour, the visionary founder of PerSoN Clinic, is transforming healthcare by making it more affordable and measurable. Since its inception in 2018, PerSoN Clinic has rapidly gained recognition, securing crucial backing from TEDCO’s Pre-Seed Builder Fund in 2020.

“Receiving TEDCO’s Pre-Seed Builder Fund investment was a game-changer during the pandemic,” Iranpour noted. “This investment enabled us to pioneer an innovative, AI-powered platform that enhances mental wellness care and accelerates drug discovery. Our patient-centric approach delivers unparalleled insights into treatment effectiveness, setting a new standard in healthcare. We couldn’t have dreamed of opening our world-class mental health care center in Maryland without TEDCO’s support.”

The Road Ahead: Continued Commitment to Gender Inclusivity

TEDCO celebrates the evidence of progress while acknowledging that there’s still work to be done for a more inclusive future. Ritchie underscores their commitment: “We are constantly evaluating and refining our programs to ensure they effectively address the unique challenges faced by a diverse range of entrepreneurs. We are committed to remaining at the forefront of this movement, working hand-in-hand with our partners to build a truly inclusive ecosystem where all founders have the opportunity to thrive.”

With its targeted initiatives and unwavering commitment, TEDCO is a key player in propelling Maryland toward a more equitable and prosperous entrepreneurial landscape. As more women founders secure funding, launch successful businesses and inspire future generations, Maryland’s economy stands to reap the rewards of a more diverse and vibrant innovation ecosystem.