New York State’s Newest Early Stage Capital Fund

Accessing capital at the early stages of a company’s evolution can mean the difference between success and failure in bridging the so-called valley of death. A brand new fund is aiming to make the Empire State more attractive to such companies. Under the leadership of Governor Cuomo, the New York State Innovation Venture Capital (NYSIVC) Fund has been formally launched, making $50 million of much-needed capital available to NYS companies.

The Fund is intended to make both pre-seed investments of up to $100,000, as well as seed and early-stage investments of $100,000 up to $5,000,000. All investments require at least a 1:1 match from private sources. Administered by Empire State Development (ESD), the fund will be managed by Brian Keil, a highly experienced venture fund manager, previously with Neilson Audio, as well as managing a $250 million fund sponsored by NBC Universal and GE Capital.

In addition NYSIVC, the Innovate NY Fund  (launched in 2012) continues to make early stage investments, giving companies even more options when seeking capital. A key difference between the two funds is the new NYSIVC will be administered directly by ESD, whereas the Innovate NY Fund is administered by several private designees across the State.

by Alan Rosenhoch, Business Development Manager