Baltimore Invests in Watch Company to Boost Revenue
The city's development arm takes a 3.75% stake in a local business, aiming to create a new revenue stream for the public.
Updated on Oct. 29, 2026 in Economic Indicators
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The Baltimore Development Corp. has invested $275,000 into the Baltimore Watch Company, marking the first move of a new city strategy to generate self-sustaining revenue for public coffers. This capital injection represents a 3.75% equity stake as the Hampden-based business works to secure $2.5 million in total funding.
Why it matters
By pivoting to equity-based investments, the city aims to reduce its long-term reliance on tax funding by building a profitable portfolio of local businesses. This shift seeks to turn the economic development agency into a revenue source for the city within the next five years.
The Baltimore Development Corp. invested $275,000 for a 3.75% stake in the Baltimore Watch Company, drawing from a $15 million total economic development fund. The company is currently raising $2.5 million in total capital to support its operations.
The players
Baltimore Development Corp.
The city's economic development agency that manages a $15 million fund and aims to generate municipal revenue through equity stakes.
Baltimore Watch Company
A Hampden-based manufacturer currently employing nine people and seeking $2.5 million in capital to fund expansion.
Otis Rolley
The president and CEO of the Baltimore Development Corp. who leads the agency's new economic development strategy.
The details
The investment was approved by the Baltimore Development Corp. investment committee as part of a new strategy to move beyond traditional grant-making. The funds were injected into the Baltimore Watch Company as it works to raise $2.5 million in capital, with the city now holding a minority stake in the local manufacturer. The firm, located at the Union Collective, currently employs nine people and projects headcount growth to between 12 and 15 staff next year.
Timeline
Otis Rolley became president and CEO of the Baltimore Development Corp. in June 2025.
The investment committee approved the deal during a meeting on Thursday morning.
The Baltimore Watch Company expects to hire additional staff next year.
The Baltimore Development Corp. aims to provide city revenue within five years.
Money Landscape
This deal marks the first deployment of capital under the Baltimore Development Corp.'s new economic development strategy. The move signals a departure from traditional grant funding toward an equity-based model intended to foster long-term fiscal independence for the city.
Residents should monitor how the city's $15 million economic development fund performs as it transitions toward a portfolio of equity stakes in local businesses. If successful, this shift is intended to eventually reduce the municipal government's reliance on local tax funding.
The takeaway
The city is betting that owning shares in local companies like the Baltimore Watch Company can create a sustainable revenue stream to lower future tax dependency. Watch for future disclosures on the portfolio's performance during annual city budget updates.
Further reading
For more on the city's shifting investment priorities, see Economic Indicators.
Source note: This article includes information reported by The Baltimore Banner.
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