Key Takeaways
- • Greater Baltimore companies raised $559.8 million in venture capital across 77 deals in 2025, a 28 percent increase in deal count from 60 in 2024 but a roughly 16 percent decline in total capital from $664.7 million.
- • Life sciences drives most regional venture activity, though UpSurge Baltimore director Rimjhim Khandelwal says the region is diversifying into fintech, e-commerce and cybersecurity.
- • Howard County attracted nearly $208 million of the 2025 total, with a cluster of cybersecurity companies raising significant venture funding.
- • Quarterly capital fell to $70.6 million in Q2 2026 from roughly $100 million in Q1 2026 even as rounds rose from 22 to 26, reflecting fewer, larger national deals.
- • Founders such as iBraid's Velma Funebe cite early-stage fundraising, team building and customer access as the main obstacles, while UpSurge is working to connect Series A companies with specialized service providers.
Summary
Greater Baltimore companies raised $559.8 million in venture capital across 77 deals in 2025, according to UpSurge Baltimore, the technology ecosystem builder integrated under the Greater Baltimore Committee (GBC). The deal count rose 28 percent from 60 in 2024, but total investment fell about 16 percent from the $664.7 million raised the previous year. UpSurge currently tracks nearly 670 companies across 24 industries, though its leaders believe the region has more startups than its data captures, particularly those that have not raised venture capital.
Rimjhim Khandelwal, director of venture advancement for UpSurge at GBC, described the ecosystem as "nascent" and said most deals come from life sciences, supported by the region's research institutions, hospitals and universities. Defense and aerospace have also been identified as lighthouse industries, supported by proximity to federal agencies. Khandelwal said the region is gradually expanding into financial technology, e-commerce and cybersecurity. Baltimore City remains the center of startup activity, but Howard County attracted nearly $208 million of the $559.8 million raised, with a significant number of cybersecurity companies raising venture funding.
Quarterly figures show that capital raised can fluctuate even as deal counts rise. Greater Baltimore companies raised roughly $100 million across 22 rounds in the first quarter of 2026, and the number of rounds increased to 26 in the second quarter while total capital fell to $70.6 million. Khandelwal attributed the pattern to a national venture market in which investment is concentrating in fewer, larger deals amid higher capital costs and more cautious decision-making. AI and AI-related companies accounted for more than 80 percent of nationally invested venture capital in the second quarter but only 16 percent of Greater Baltimore's deals, according to Khandelwal. She said the region can compete in AI applied to health care, cybersecurity and national security, and pointed to its STEM graduates and former federal employees as workforce assets.
Founders face persistent hurdles. Velma Funebe, a 21-year-old University of Maryland, Baltimore County senior building iBraid, an augmented reality app to help people braid and part their hair, said early-stage founders struggle to learn how to pitch to venture capital and angel investors. She spent about two months searching for a co-founder and said she has since built a team including marketing and software engineering leads. Funebe credited UMBC's Alex. Brown Center for Entrepreneurship and Innovation, the Pava Marie LaPere Center for Entrepreneurship, and TEDCO's BRIDGE Program with mentorship and support, and noted a $50,000 Johns Hopkins innovation award. Her 2026 goals include customer discovery, launching the first app this fall and raising angel and venture capital.
Charlotte Clark, director of ecosystem engagement for UpSurge at GBC, said the state has many low- or no-cost support organizations for seed and pre-seed companies, but Series A companies need more specialized help. She said UpSurge hopes to add service providers, talent and fractional workers to support Series A fundraising. Organizations highlighted include TEDCO, Johns Hopkins Technology Ventures, Innovation Works, DataTribe, the Novella Center for Entrepreneurship and the Baltipreneurs Accelerator at Loyola University Maryland. This story was produced as part of a media partnership between GBC and the AFRO.
Rimjhim Khandelwal, director of venture advancement for UpSurge at GBC, described the ecosystem as "nascent" and said most deals come from life sciences, supported by the region's research institutions, hospitals and universities. Defense and aerospace have also been identified as lighthouse industries, supported by proximity to federal agencies. Khandelwal said the region is gradually expanding into financial technology, e-commerce and cybersecurity. Baltimore City remains the center of startup activity, but Howard County attracted nearly $208 million of the $559.8 million raised, with a significant number of cybersecurity companies raising venture funding.
Quarterly figures show that capital raised can fluctuate even as deal counts rise. Greater Baltimore companies raised roughly $100 million across 22 rounds in the first quarter of 2026, and the number of rounds increased to 26 in the second quarter while total capital fell to $70.6 million. Khandelwal attributed the pattern to a national venture market in which investment is concentrating in fewer, larger deals amid higher capital costs and more cautious decision-making. AI and AI-related companies accounted for more than 80 percent of nationally invested venture capital in the second quarter but only 16 percent of Greater Baltimore's deals, according to Khandelwal. She said the region can compete in AI applied to health care, cybersecurity and national security, and pointed to its STEM graduates and former federal employees as workforce assets.
Founders face persistent hurdles. Velma Funebe, a 21-year-old University of Maryland, Baltimore County senior building iBraid, an augmented reality app to help people braid and part their hair, said early-stage founders struggle to learn how to pitch to venture capital and angel investors. She spent about two months searching for a co-founder and said she has since built a team including marketing and software engineering leads. Funebe credited UMBC's Alex. Brown Center for Entrepreneurship and Innovation, the Pava Marie LaPere Center for Entrepreneurship, and TEDCO's BRIDGE Program with mentorship and support, and noted a $50,000 Johns Hopkins innovation award. Her 2026 goals include customer discovery, launching the first app this fall and raising angel and venture capital.
Charlotte Clark, director of ecosystem engagement for UpSurge at GBC, said the state has many low- or no-cost support organizations for seed and pre-seed companies, but Series A companies need more specialized help. She said UpSurge hopes to add service providers, talent and fractional workers to support Series A fundraising. Organizations highlighted include TEDCO, Johns Hopkins Technology Ventures, Innovation Works, DataTribe, the Novella Center for Entrepreneurship and the Baltipreneurs Accelerator at Loyola University Maryland. This story was produced as part of a media partnership between GBC and the AFRO.
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