§10–4A–16.

    (a)    In selecting applicants for venture firm certification, the Authority shall consider:

        (1)    the management structure of the applicant, including:

            (i)    the investment experience of the principals;

            (ii)    the applicant’s reputation in the venture firm industry and the applicant’s ability to attract co–investment capital and syndicate investments in qualified businesses in the State;

            (iii)    the knowledge, experience, and capabilities of the applicant in subject areas relevant to venture–stage businesses in the State;

            (iv)    the tenure and turnover history of principals and senior investment professionals of the applicant; and

            (v)    whether the State’s investment in the applicant under this program would exceed 15% of the total invested in the applicant by all investors, including investments in any side car fund affiliates;

        (2)    the applicant’s investment strategy, including:

            (i)    the applicant’s track record of investing in venture–stage businesses;

            (ii)    the applicant’s history of attracting co–investment capital and syndicate investments;

            (iii)    the soundness of the applicant’s investment strategy and the compatibility of that strategy with business opportunities in the State; and

            (iv)    the applicant’s history of job creation through investment;

        (3)    the applicant’s commitment to making investments, that to the fullest extent possible:

            (i)    create employment opportunities in the State;

            (ii)    lead to the growth of the State economy and qualified businesses in the State;

            (iii)    complement the research and development projects of State academic institutions; and

            (iv)    foster the development of technologies and industries that present opportunities for the growth of qualified businesses in the State; and

        (4)    the applicant’s commitment to the State, including:

            (i)    the applicant’s presence in the State through permanent local offices or affiliation with local investment firms;

            (ii)    the local presence of senior investment professionals;

            (iii)    the applicant’s history of investing in venture–stage businesses in the State;

            (iv)    the applicant’s ability to identify investment opportunities through working relationships with State research and development institutions and State–based businesses;

            (v)    the applicant’s relationship with other venture firms in the region;

            (vi)    the applicant’s history of investing in areas relevant to venture–stage businesses in the State; and

            (vii)    the applicant’s commitment to investing a similar or greater amount of designated capital received under this subtitle in State–based ventures and qualified businesses.

    (b)    To ensure the Corporation has continued access to the best available and qualified venture firms as well as to provide for the replacement of venture firms that have been disqualified under § 10–4A–22 of this subtitle:

        (1)    an applicant shall file an application with the Corporation in the form required by the Corporation;

        (2)    the application shall include the applicant’s most recent financial statements;

        (3)    the Corporation shall accept applications for certification for a period of 3 months at the Corporation’s choosing, at the same time each year; and

        (4)    notwithstanding the requirements of § 10–4A–22(b) of this subtitle, when one or more venture firms have been disqualified under § 10–4A–22 of this subtitle, the Corporation may receive applications, for a period of not less than 2 months, at any time during the calendar year.

    (c)    To be certified as a venture firm:

        (1)    the applicant must have, at the time of application, an equity capitalization, net assets, or written commitments of at least $500,000 in the form of cash or cash equivalents;

        (2)    at least two principals or persons employed to direct the investment of the designated capital of the applicant must have at least 5 years of money management experience in the venture capital or private equity sectors; and

        (3)    for a period of 2 years from the date of disqualification, the applicant may not be:

            (i)    a venture firm that has been disqualified under § 10–4A–22 of this subtitle; or

            (ii)    a firm with majority ownership composed of members who had ownership or leadership roles in a firm that has been disqualified under § 10–4A–22 of this subtitle.

    (d)    Not later than 90 days after an application is filed, the Secretary shall either:

        (1)    issue the certification; or

        (2)    refuse to issue the certification and communicate in detail to the applicant the grounds for the refusal.