Gov. Andrew M. Cuomo in December
launched the state Innovation Venture
Capital Fund to support entrepreneurs
making the transition from research to
marketplace, and incentivize them to stay
and grow their businesses in New York.
According to Cuomo, the fund will provide
seed funding for the development
of early-stage companies in high growth
areas to create jobs and help launch, as
well as attract new businesses to New
York state.
He said the $50 million fund is expected
to leverage at least $100 million
in private capital to support high growth
areas including advanced materials, clean
technology, life sciences/biotechnology
and information technology.
“New York is home to some of the brightest
minds in the world – and by launching
this fund, we’re helping these budding
entrepreneurs bring their ideas to market
right here in the Empire State,” Cuomo
said. “With this action, we’re continuing
New York’s legacy of innovation, as well
as making another solid investment in this
state’s future.”
The fund will be comprised of two
distinct segments. The Technology Commercialization
Segment will facilitate
the commercialization efforts of start-up
companies associated with New York’s
universities and make small pre-seed
stage investments of up to $100,000, officials
said.
The Seed and Early Stage Co-Investment
Segment will invest directly in seed
and/or early stage companies, with an
emphasis on strategic industries such as
information technology and life sciences/
biotech, as well as relatively under-served
areas of the state, with investments ranging
from $100,000 to $5 million, the governor’s
office said.
Empire State Development will review
each and approve all of the fund’s investments.
The fund is part of Cuomo’s broader
commercialization agenda in order to
encourage innovation and drive economic
growth in communities across the state.
It is being coordinated with the state’s
existing business resources and innovation
investments, including the START-UP NY
program, Innovation Hot Spots, the Regional
Economic Development Councils,
the Centers of Advanced Technology and
Centers of Excellence networks and the
SUNY 2020 Initiative.
The fund will be administered by Empire
State Development (ESD) and managed
by ESD’s new Innovation Venture Capital
Fund Managing Director, Brian Keil.
Keil previously served as vice president
of strategy and corporate development
at Nielsen Audio. Prior to this role, he
was a managing director and founding
member of a $250 million venture capital
fund sponsored by NBC Universal and GE
Capital, where he sourced, executed and
managed venture capital investments in
the digital media sector.
ESD President, CEO and Commissioner
Kenneth Adams said, the fund complements
New York’s existing business tools
“and helps connect the various components
of the state’s innovation pipeline.
We are excited Brian Keil has joined our
team, helping to ensure the most promising
startups get the support they need in
early stage development and that New York
State better competes for private-sector
venture investment.”
Cuomo also said the fund will benefit
from the knowledge and expertise of a volunteer
Investment Committee, an advisory
group comprised of experienced private
investment professionals from around New
York State. The committee will be chaired
by Howard Morgan, a prominent venture
capitalist and angel investor.
Dr. Morgan currently serves as a partner
with First Round Capital in New York and
Philadelphia; director of Idealab, the Pasadena,
Calif.-based creator and operator of
internet companies where he was first a
founding investor in 1996 and later served
as president of Idealab! New York; and a
member of the New York Angels. He is also
a respected author and contributing writer
for Business Insider.
Morgan said there are “great opportunities
throughout New York state that will
benefit from the additional capital and
support that the new fund can provide. I
am hoping that many of the top venture
firms will value the added impetus that
the Innovation Venture Capital Fund
brings to areas that are currently under
supported and have had less visibility from
traditional venture sources.”
For more information on the program,
please visit http://esd.ny.gov/BusinessPrograms/NYSInnovationVentureCapitalFund.html.