First firm chosen for funds from InvestMaryland

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BALTIMORE (AP) — Grotech Ventures has been chosen to be the first private firm to receive funds through Maryland's $84 million InvestMaryland program.

Gov. Martin O'Malley made the announcement on Wednesday.

Grotech will get $12 million under the state program to invest in developing companies. The local venture capital firm focuses on information technology companies with an emphasis on digital and social media, security and storage technologies and healthcare information technology.

InvestMaryland was created to help innovative companies get started in the state. The money has been raised by an online auction of premium tax credits to insurance companies with operations in Maryland.

Under the program, Grotech will return 100 percent of the principal it receives, if companies it funds are successful, and 80 percent of the profits to the state's general fund.

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