In an unusual move, Baltimore takes an equity stake in a local watchmaking company

If you live in Baltimore, you now own a tiny fraction of a watchmaking company.

The Baltimore Development Corp., the city’s quasi-governmental economic development arm, recently invested $275,000 in the Baltimore Watch Company, a small business based in Hampden.

Like other local governments, Baltimore has long supported local businesses through grant programs, tax incentives and loans. But taking a stake like this in a private company is an unusual move for the city.

At the BDC’s board meeting Thursday morning, Otis Rolley, the group’s president and CEO, called the investment the “first of many to come” under a new strategy.

And Rolley’s BDC has the firepower to do it.

Mayor Brandon Scott’s office carved out $15 million in the city’s current budget for a new economic development fund controlled by the Baltimore Development Corp. Since the Scott administration hired Rolley in June 2025, he has overhauled the group’s leadership team and launched several new initiatives.

Direct government investment in companies is not unheard of in America, though it often supports a specific policy goal. Last year, President Donald Trump said the federal government had taken a 10% stake in Intel, partly to support the domestic manufacturing of computer chips.

One reason Rolley wants to invest in companies like the Baltimore Watch Company is to make money.

Right now, the BDC is like the Baltimore Police Department, the Department of Recreation and Parks, or almost any other city agency. It’s largely funded with taxpayer dollars, costing the city money.

But Rolley said his goal is that within five years, the Baltimore Development Corp. won’t be taking money out of city coffers — it will be pumping money into them.

Years ago, before Under Armour grew into an international sports apparel company, the BDC made a small business loan to the company, Rolley said. But imagine if that had been an equity investment instead.

Rolley said he used to oversee similar kinds of investments when he was the CEO of Invest Newark, the economic development corporation of Newark, New Jersey.

It’s not an unprecedented concept in Baltimore, either, Rolley said. The BDC oversees a startup incubator called the Emerging Technology Center, which provides seed money to early-stage firms.

However, Rolley acknowledged that the $275,000 for the Baltimore Watch Company is the largest single investment the Baltimore Development Corp. has ever made in a private company, calling it a “phenomenal business.” He said the decision was reviewed by the group’s investment committee.

The Baltimore Watch Company, formerly known as Tsao Baltimore, was founded by Alan Tsao. The company sells several watches with designs inspired by the region, including a limited-edition Old Bay watch, and Tsao said the city is integral to the brand’s identity.

The Baltimore native said he grew the business out of his home before moving into a small storefront in Hampden and, more recently, into a 7,100-square-foot space at Union Collective. He said the business has nine employees and plans to grow to 12 to 15 next year.

The Baltimore Watch Company was in the middle of raising $2.5 million when Tsao heard that the Baltimore Development Corp. was looking to invest in a cool, unique, minority-owned business. Tsao said the $275,000 investment represents a 3.75% stake in the company.

“Getting the backing of the city is incredible,” Tsao said.