In venture capital, a “unicorn” has long been treated as a marker of outsize success. Once associated mostly with Silicon Valley, those private companies valued at more than $1 billion now emerge from a wider range of places and sectors, including health care, manufacturing and energy.

Maryland has emerged as a hub for these high-growth enterprises. And for TEDCO, the Maryland Technology Development Corporation, the question is not only which companies reach that threshold, but what it takes to help build them there.

Beyond just an early-stage funder, it aims to serve as a strategic architect for Maryland’s growth, identifying and de-risking the companies that become the foundational pillars of the Mid-Atlantic economy.

“It’s just wonderful because here we are, this little state, and we’re not Silicon Valley,” said Katherine Hill Ritchie, TEDCO’s senior director of venture funds. 

“We’re competing against the rest, but we’re not because we can only invest in Maryland-based companies. It’s an entrepreneurial state, it’s a business-friendly state, but it hasn’t been known for unicorns like Silicon Valley. But guess what? We’re having them.”

TEDCO’s role is different from that of a traditional venture firm.

Alongside pursuing returns, it’s charged with supporting economic development across its home state. It makes the case that early public-backed capital, paired with business support, can help companies stay and scale in-state, rather than leaving for larger markets.

The unicorn conversation starts well before a company reaches a 10-figure valuation. TEDCO’s investment activity spans pre-seed through Series A, with an eye toward companies that may still be years away from that milestone.

Its investment portfolio includes several significant success stories in the region:

• Aledade: Headquartered in Bethesda, Aledade sought out to improve the healthcare landscape by partnering with independent primary care physicians to transition to value-based care, prioritizing positive patient outcomes over volume of services provided. TEDCO’s Maryland Venture Fund invested $1.5 million in the company back in 2016.
• Xometry: A publicly traded marketplace for on-demand manufacturing that has accelerated global supply chains from its headquarters in North Bethesda. After receiving two investments (one in 2018 and one in 2019), the company grew and was able to exit TEDCO’s portfolio in 2022.
• ShiftMed: A platform developed to address the critical healthcare labor shortage, joining the ranks of Maryland’s high-valuation innovators. TEDCO invested in the company in 2018 with State Small Business Credit Initiative funding; ShiftMed, then known as CareSave Technologies, Inc., successfully exited in 2021.

The portfolio also features “Soonicorns” — companies nearing unicorn territory, typically maintaining valuations of $850 million or more. By providing a combination of direct investment and business resources designed to navigate the complexities of scaling, TEDCO helps ensure these companies achieve sustainable, long-term growth

A notable example is ION Storage Systems. Founded at the University of Maryland and based in Beltsville, the battery company is moving toward commercialization in 2026 with ceramic bilayer solid-state battery technology.

Unlike traditional lithium-ion batteries, these are non-flammable, non-swelling and able to operate in extreme temperatures. 

“For the first time in the history of the solid-state battery, you have a platform that is actually flexible in applications beyond electric vehicles,” said CEO Jorge Diaz Schneider.

TEDCO’s support has mattered beyond the check itself, he said, particularly as ION moved from university research into manufacturing.

“TEDCO has been supportive through investment, but also through all of the different additional benefits that come through a partnership like that,” Diaz Schneider said. “Connectivity to investors, connectivity to state representatives… they’ve distinctively supported us on two different stages of development.”

The historical dominance of the West Coast in technology investment is diversifying. 

High operational costs and a saturated market have led national venture funds to seek opportunities in secondary markets like Baltimore and College Park, where entry valuations are more equitable, and the talent pool — supported by federal laboratories and research universities — is highly skilled.

That’s especially relevant in sectors that depend on deep technical expertise. After a long stretch in which software drew much of the attention, the venture capital landscape is shifting toward “hard tech.” 

Maryland’s concentration of federal labs, research universities and technical employers gives it a base in those sectors that state leaders and investors are building on. This is reflected in the highly skilled engineering roles created in Beltsville, for example, and the national network of care established in Bethesda.

For TEDCO, success is ultimately measured by the long-term economic health of the state. Keeping more of that growth anchored in Maryland has longer-term effects through jobs, follow-on investment and capital for future founders.

“We’re proud of any company that’s a unicorn in Maryland, because it’s good for Maryland, right?” said Hill Ritchie, the venture fund senior director. Even better, she added, when there’s an exit, “it’s probably going to be a big fat check back to the state of Maryland, which then gets recycled and goes back out to Maryland entrepreneurs.”

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