The TEDCO presentation is not a startup's pitch deck, but rather a strategic guide from a state-backed investment body (Maryland Technology Development Corporation) explaining how to win funding. The deck focuses heavily on the Cybersecurity Investment Fund (CIF), which offers a $100,000 initial investment across four tranches, with a potential $125,000 follow-on. It provides a rare 'behind-the-curtain' look at what institutional seed investors prioritize: a 12-month project timeline, a 50% company match (cash or in-kind), and a clear commercialization pathway. The deck includes a detailed fi…
Key takeaways
- The Cybersecurity Investment Fund (CIF) provides a $100,000 investment distributed in four tranches (Slide 3).
- Applications for CIF are due on the 15th of every month, following a two-month review cycle (Slide 3, 4).
- A 'Good Project' is defined by two primary pillars: a clear commercialization pathway and a qualified team (Slide 7, 8).
- Funded projects must typically span 12 months, include 3 milestones, and require a 50% company match in cash or in-kind (Slide 9).
- Financial projections are mandatory, but the deck notes that 'projections will never be correct,' serving instead as a reflection of business assumptions (Slide 11).
- TEDCO explicitly looks for innovative, seed-stage, technology-enabled solutions in large markets, specifically excluding 'me too' plays (Slide 15).
- The 'Top 10' list highlights the need for a blend of business and technical skills, noting that marketing and sales are commonly overlooked (Slide 17).
- Value propositions must address the 'do nothing' competitor and identify the specific paying customer (Slide 18).
Introduction to TEDCO Funding Programs
This presentation, titled 'TCF.. CIF.. WTF(unding)?', is an instructional deck produced by TEDCO (Maryland Technology Development Corporation). Unlike a standard startup pitch, this deck functions as a set of 'rules of engagement' for founders seeking state-backed seed capital. It specifically addresses the Technology Commercialization Fund (TCF) and the Cybersecurity Investment Fund (CIF).
The Cybersecurity Investment Fund (CIF) Overview
Slide 3 introduces the CIF, managed by Ron Kaese. The purpose of the fund is to finance product development to position Maryland-based cybersecurity companies for follow-on investment. The financial structure is specific: a $100,000 investment paid out in four tranches, with a potential $125,000 follow-on. The deadline is recurring, falling on the 15th of every month.
The Application and Review Timeline
Slide 4 provides a visual roadmap of the two-month review process. For the TCF (due the 1st) and CIF (due the 15th), the first month involves a compliance review and a site visit. The second month consists of a preliminary review (1st Monday for TCF, 2nd Wednesday for CIF) followed by a formal pitch to the committee (3rd Wednesday for TCF, 1st Wednesday of the following month for CIF). This transparency is rare in the investment world and sets clear expectations for founder runway management.
Defining a 'Good Project'
Slides 6 through 8 define the criteria for a fundable project. TEDCO uses metaphors—a mountain trail for a 'commercialization pathway' and a construction site for a 'qualified team'—to emphasize that they are not just funding an idea, but a structured journey toward market entry. They explicitly state that the team must be 'qualified' to execute the specific path proposed.
Project Mechanics and Milestones
Slide 9 and 10 get into the granular requirements of the funding. A project is expected to last 12 months and be divided into 3 milestones. Notably, there is a requirement for a 50% company match, which can be either cash or in-kind services. Indirect costs are capped at 20%. Slide 10 provides a concrete example of a milestone-based payment schedule, showing $25,000 payments linked to specific technical deliverables like 'Implement scoring algorithm' or 'Enable audio/video upload.'
Financial Projections and Assumptions
Slides 11 and 12 offer a masterclass in how seed investors view financials. The deck bluntly states, 'Projections will never be correct... but they have to make sense.' The goal is not to predict the future with 100% accuracy but to facilitate a discussion about the founder's assumptions. Slide 12 suggests a five-step process: use market research for credibility, build revenue from segment strategy, calculate gross margins via COGS, build an SG&A budget, and finally determine the EBIT to identify investment needs.
The Financial Template
Slide 13 provides a 'Financial Projections Template' covering five years. It tracks Units, Revenues, COGS, Gross Margin, SG&A, EBIT, R&D Spending, CAPEX, and Cash Flow. This template is a vital resource for any founder applying to TEDCO, as it shows exactly how the committee expects to see data organized. Slide 14 follows up by advising founders to calculate their market share percentage, ensuring it is 'not too large and not too small... just right' to account for both risk and opportunity.
What TEDCO Seeks: Sector and Stage
Slide 15 clarifies the target profile: innovative, disruptive, seed-stage, technology-enabled solutions. While the deck highlights cybersecurity, it lists other acceptable sectors: biologics/diagnostics, medical devices, health IT, enterprise software, web applications, and engineered products. The slide uses a photo of a crowded taxi lot to warn against 'me too' plays, emphasizing that differentiation is mandatory.
The TEDCO Top 10 List: Success Strategies
Slides 16 through 20 detail a 'Top 10' list of advice for applicants. Key highlights include:
Outside Advisors: Founders are encouraged to refine their proposals with external help because they are competing against all other funded plans (Slide 16). · Team Composition: A 'stage-appropriate' team should blend business and technical skills. TEDCO notes that marketing and sales are the most commonly overlooked skills in early-stage applications (Slide 17). · Value Proposition: Founders must answer why anyone will buy the product and must include 'do nothing' as a primary competitor (Slide 18). · Go-to-Market: The plan should not expect customers to alter their existing buying habits; the product must fit into the current market flow (Slide 19). · Communication: The final tip is to 'pitch so your grandparents get it.' TEDCO reviewers are not experts in every niche, so clarity is paramount (Slide 20).
What Works in This Deck
This deck is an excellent example of institutional transparency. By providing a specific financial template (Slide 13) and a milestone example (Slide 10), TEDCO removes the guesswork from the application process. The emphasis on 'assumptions over numbers' (Slide 11) is a healthy reality check for founders who often over-engineer their spreadsheets. The inclusion of the 'do nothing' competitor (Slide 18) is a sophisticated touch that many amateur pitch decks miss, as the status quo is often the biggest hurdle for new technology.
What Is Missing
Because this is a guide for applicants rather than a startup's pitch, it lacks specific company data. However, from the perspective of a guide, it is missing a clear definition of 'in-kind match.' While Slide 9 mentions a 50% match is required, it does not detail how a pre-revenue startup should value 'in-kind' contributions (e.g., founder sweat equity vs. donated equipment). Additionally, the deck does not specify the equity stake or repayment terms associated with the $100,000 investment, which is a critical piece of information for a founder evaluating their cap table impact.
What a Founder Should Copy
Founders should mirror the 'Milestone' structure found on Slide 10. Instead of asking for a lump sum for 'growth,' breaking the ask into specific technical and business achievements makes the investment feel de-risked. Furthermore, the logic on Slide 12—linking market segmentation directly to the SG&A budget—is a superior way to build a financial model compared to simple percentage-based growth projections. Finally, every founder should adopt the 'grandparent test' mentioned on Slide 20; if a non-expert cannot understand the core value proposition in 30 seconds, the deck is too complex.
Frequently asked questions
- What is the specific investment amount offered by the CIF?
- According to slide 3, the Cybersecurity Investment Fund (CIF) offers a $100,000 investment delivered in four tranches. There is also the possibility of an additional $125,000 in follow-on investment for companies that meet their objectives and demonstrate continued growth potential within the Maryland ecosystem.
- What are the eligibility requirements for these funds?
- Slide 3 specifies that the CIF is targeted at 'Cybersecurity' companies located in Maryland (MD). The broader goal, as stated on slide 15, is to fund innovative, disruptive, seed-stage, technology-enabled solutions. The deck covers sectors including biologics, medical devices, health IT, enterprise software, and engineered products.
- How does TEDCO evaluate a startup's financial projections?
- Slide 11 and 12 explain that while projections are required, investors expect to discount them. The primary purpose of the P&L is to serve as a 'reflection of your assumptions about the business.' TEDCO suggests linking market segmentation strategy directly to the annual revenue projections and COGS to determine investment needs.
- What does a successful project timeline look like?
- Slide 9 and 10 outline the 'Project Details.' A typical project lasts 12 months and is structured around 3 major milestones. The funding is milestone-based, as shown in the example on slide 10, where payments of $25,000 are triggered by specific technical or market achievements like implementing algorithms or piloting tools.
- What are the most common mistakes founders make according to this deck?
- The 'Top 10' list (Slides 16-20) suggests that founders often overlook marketing and sales skill sets, fail to account for the 'do nothing' alternative in their competitive analysis, and struggle to communicate their pitch simply enough for a non-expert to understand ('pitch so your grandparents get it').
