Originally published by WYPR
Almost 70 percent of venture capital investments for start-ups in Baltimore are coming from outside of Maryland, according a Johns Hopkins report released last week. That is causing some businesses to relocate out of state, while others have stayed.
Venture capital investments are large sums of money—more than $5 million—given to start-up businesses to grow rapidly and see high profits, but they tend to be very risk.
So when start-ups need seed money—typically a million dollars or more—to get established in Baltimore, they turn to incubators, accelerators, and angel investment firms. That’s like hitting a double in baseball.
But, if a start-up wants to blast a grand slam out of the park investor Ben Seigel says, “It’s difficult. It’s difficult to get the large, early or later stages investment from investors in Baltimore city or even Maryland.”