Baltimore City Invests in Private Watchmaker

The Baltimore Development Corp. recently purchased a 3.75% equity stake in the Baltimore Watch Company for $275,000. This transaction marks the largest single investment the agency has ever made in a private firm. The move signals a shift away from traditional grant and loan models toward direct ownership in local businesses.

Otis Rolley, the president and CEO of the Baltimore Development Corp., described the investment as the first of many under a new strategy. Rolley noted that the agency previously provided a small business loan to Under Armour before it became a global brand. He argued that an equity position in a similar venture could have generated substantial returns for the city.

The Baltimore Development Corp. operates with a $15 million fund allocated by Mayor Brandon Scott. Rolley, who joined the administration in June 2025, has restructured the leadership team to pursue this model. His goal is to transform the agency from a cost center funded by taxpayers into an entity that generates revenue for city coffers within five years.

The Baltimore Watch Company was founded by Alan Tsao and sells timepieces inspired by the region, including an Old Bay design. Tsao stated that the company was raising $2.5 million when the city approached them. He identified the business as minority-owned, a factor Rolley cited when the agency sought a unique investment target. The company employs nine people and plans to expand its staff to between 12 and 15 employees next year.

Tsao moved the business from his home to a storefront in Hampden and recently to a 7,100-square-foot space at Union Collective. He said the city is integral to the brand's identity. Rolley acknowledged that the decision underwent review by the agency's investment committee before approval. He referred to the venture as a phenomenal business.

Direct government investment in private companies often supports specific policy goals, such as domestic manufacturing. Last year, the federal government took a 10% stake in Intel. Rolley said he used to oversee similar investments as the CEO of Invest Newark in New Jersey. He also pointed to the Emerging Technology Center, a startup incubator the Baltimore Development Corp. already oversees, as precedent for providing seed money to early-stage firms.

Tsao said the city's backing provides critical support for the company's growth. The investment allows the business to continue expanding its production and sales. The Baltimore Watch Company, formerly known as Tsao Baltimore, remains a small player in the watchmaking industry but now has a municipal partner.