(a) (1) A business that is classified as a qualified business at the time of the first investment in the business by a venture firm, the Enterprise Fund, or the Financing Authority remains classified as a qualified business and may receive follow–on investments from a venture firm, the Enterprise Fund, or the Financing Authority as provided under this subsection.
(2) A follow–on investment from a venture firm is a qualified investment even though the business does not meet the definition of a qualified business at the time of the follow–on investment.
(3) With respect to an investment by the Enterprise Fund or the Financing Authority, a follow–on investment does not qualify as a qualified investment if, at the time of the follow–on investment, the business no longer meets the definition of a qualified business.
(b) Each venture firm shall inform the Corporation in writing when the venture firm requires designated capital for investment or for the payment of approved fees and expenses.
Structure Maryland Statutes
Division II - Independent and Regional Development Units and Resources
Title 10 - Statewide Development Resources and Revenue Authorities
Subtitle 4A - Invest Maryland Program
Part III - Venture Firms and Investments
Section 10-4A-15 - Independent Third Party
Section 10-4A-16 - Venture Firm Certification
Section 10-4A-17 - Qualified Business
Section 10-4A-18 - Prohibitions of Purchaser or Affiliate
Section 10-4A-19 - Reports and Audited Financial Statement
Section 10-4A-20 - Distributions
Section 10-4A-21 - Investment Returns Used to Make Additional Qualified Investments