BioHealth Gap fund will target early-stage companies in Maryland.

BioHealth Innovation, a private-public non-profit, has announced a new fund targeting businesses in central Maryland. Dubbed BioHealth Gap, the fund will total $50m and invest in early-stage companies in the life sciences, pharmaceutical, health IT and civil cybersecurity sectors.

BioHealth was launched in 2012 with the aim of supporting life sciences companies in Maryland that are unable to attract investors flocking to Silicon Valley and other more established clusters. The non-profit is working with both federal agencies and technology transfer offices to foster an ecosystem.

Despite the lack of traditional investors, Maryland is well positioned for life sciences and civil cybersecurity sectors, as several billion dollars are invested in research and development via federal agencies in the state each year.

The new fund will help this research bridge the gap from angel to venture capital funding, with individual commitments to range between $500,000 and $2.5m. BioHealth expects to close the first tranche of $20m in early 2015 and start investing, with the lifespan of the fund expected to be 18 months.

Richard Bendis, chief executive at BioHealth Innovation, said: “We are going to focus in a geographic region that is not one of the most popular venture capital regions in the country. We think there are tremendous assets here that just do not get the exposure they would in the more vibrant venture capital regions.”