The State of New York has launched a $50m venture capital fund to support businesses working in life sciences, cleantech, and advanced materials.
The fund is part of the wider Startup NY initiative, launched by governor Andrew Cuomo, to support new businesses in the New York area. Launched last year, startups and spin-outs are entitled to up to 10 years tax-free operation if they set up or expand to designated areas near university campuses.
The innovation fund will be used to provide seed funding, and is expected to leverage a further $100m in private capital. Split into two segments, one part of the fund will be used to provide seed to early-stage investments ranging from $100,000 to $5m, while the other part will be focused on research commercialisation and provide pre-seed investments of up to $100,000.
In a statement, Cuomo said: “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. With this action, we’re continuing New York’s legacy of innovation, as well as making another solid investment in this state’s future.”
