Maryland biotech roadmap calls for more money, but when? - Baltimore Business Journal:

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Getting startups to lease the third buildingv atthe , Baltimore BioPark is a toughg sell. And at the University of Maryland, Baltimorde County, some biotechnology tenants are skippinb out on theirrent payments. The economicv downturn has hit major biotech projectzs inthe area. Growing the state’s $29 billion life sciencews industry is the cornerstone ofthe state’sw economic development efforts. But while biotech leaders at Hopkind and Maryland breathed a sigh of relief when they heards May 20that Gov.
Martin O’Malley’s biotech roadmao — the Bio 2020 initiative — includes pumping more money intothe industry, they realizs that getting that money anytime soon is The state will increase funding for the Marylanrd Venture Fund from $2 million to $9 million and raisde the biotech tax credit from $6 But the state can’t say when that will Funding for the tax credit and venture fund will be phasecd in as the state’z fiscal situation allows over the next year or two, said Lawrence C.
senior strategy adviser for the state’s life sciences advisory The biotech plan also callsd for newspending measures, includiny the Maryland Life Sciences Venture Capital with an initial $10 millioj seed investment. But Mahan said that will not be considerecd until 2011 atthe earliest. So the state’ Bio 2020 strategy may not be enoughn to infuse capital into the industry when biotech leaders need it themost now. “In the short term, we have to live througn the budget crisis,” said Aris Melissaratos, senior advised of enterprise development for JohnsHopkins “The money just isn’t there.” Hopkins has spun out five companies this year.
And with just six weekss left in itsfiscalk year, Melissaratos said it is unlikely that it will match last year’sa success when it spun out 12 Attracting venture capital money is tough for any companyu these days. But it is especiall difficult for biotech executivez who can toil as much as a decade performing clinicaol trials and getting federal approvals before theid research results in a product thatmakes money. The state’xs biotech growth strategy could makethingws easier. A biotechnology intended as one-stop resource center for biotech will open in thenext month.
Entrepreneuras will be able to access subscription services that show wherse venture capital firms have puttheirf dollars. That can save them time and moneuy — between $5,000 and $40,000 a year. Having a central resource will make it easiert for entrepreneurs to navigatethe state’d somewhat confusing array of biotechnology biotech leaders say. “State resources will be much morereadilyg accessible,” said Jim Hughes, UMB’s vice president for researcgh and development. That will help startups that want to sign up with the UMB he said. So far, no tenantsd have been signed forthe 180,000-square-foot the third of 10 planned buildings.
Banks now expectg a building to be at least 50 perceng leased before they willcommiy money, Hughes said. Venture capitalists investecd $3 billion during the first quarter, the lowesty funding level in 12 years. That is accordint to a study from and the National VenturewCapital Association.