Three Emerging Technology Companies from Anne Arundel County and Baltimore City to Receive VOLT Fund Tech Loans
Annapolis, Maryland – (March 13, 2017) – The Anne Arundel Economic Development Corporation (AAEDC) today announced that one Anne Arundel County based technology company and two others from Baltimore City have been approved for VOLT Fund tech loans. Loan awards for SecuLore Solutions of Odenton, Peer Aspect, a graduate of the Emerging Technology Center, and CourseArc, a member of Betamore, total $700,000.
“The VOLT Fund is a unique resource within Maryland’s technology ecosystem in that it provides patient capital to companies that are at a critical phase in growth,” said AAEDC CEO Julie Mussog. “This funding model allows start-ups more freedom to innovate and time to strengthen their operations so they can be more attractive to follow on investment.”
These awards are offered as a long term loan with no principal or interest payments until the company experiences a liquidity event, preferably within 24 months of the loan closing. A liquidity event is defined as an acquisition, investment from venture capital/angel investors or private equity firms in the amount of 4 times of the original loan made by the fund, or an initial public offering (IPO).
Fifty-two applications were received for the 2016-2017 round. Applications were collected through a two-month application window and down-selected through two subsequent rounds before the final selections were made by an investment committee. Details on each awardee include the following:
· SecuLore Solutions
SecuLore Solutions has combined Public Safety knowledge with deep cybersecurity expertise to produce Paladin™, a patent-pending, network appliance that monitors data between the firewall and external sources, visualizes the traffic and provides sophisticated and dynamic protection of 911 call centers.
PeerAspect provides software tools and professional expertise to help organizations collect and manage supply chain compliance data.
CourseArc is a digital content creation tool which allows anyone to create interactive and accessible online courses professionally and affordably.
SecuLore Solutions CEO Timothy Lorello says, “The VOLT loan represents a very timely opportunity to grow our company. We have received a very strong and positive reception from Public Safety agencies for Paladin, our cybersecurity network appliance. VOLT will allow us to more rapidly expand the feature content and support being requested by our customers, allowing us to more rapidly grow revenues and provide Maryland jobs.”
“This funding will be a bridge from the seed-level capital we’ve raised so far to the proper A-round we intend to raise later this year,” said Scott Kaufman, CEO of PeerAspect. “It will help us further refine our product, accelerate sales, and position ourselves for rapid growth.”
AAEDC’s VOLT Fund received an allotment of $3.5 million in 2016 from the state’s small, minority and woman-owned business loan fund. That fund is managed by the Maryland Department of Commerce and is supported by 1.5 percent of video lottery terminal revenue from Maryland casinos. Besides loans to conventional businesses, the VOLT Fund has a unique set aside for entrepreneurs of innovative technology.
The VOLT Fund technology investment committee considers several factors in the review of each application. Applicants must be high potential early stage technology companies with a clear path to follow-on funding. Also, teams must be led by an experienced entrepreneur or demonstrate a willingness to acquire needed management talent. Companies must also be at a stage in product development where the cash flow break-even point is expected within 24 months.
ABOUT THE ANNE ARUNDEL ECONOMIC DEVELOPMENT CORPORATION
The mission of the AAEDC is to serve as a catalyst for business growth in Anne Arundel County thereby increasing job opportunities, expanding the tax base and improving quality of life. It provides investment and technical assistance and fosters community revitalization initiatives. AAEDC plays a vital role in enhancing commercial districts, improving county infrastructure, increasing agriculture-based business and promoting high-value business sectors such as technology and national defense. News and updates are available on the corporation’s website www.aaedc.org.