The idea behind the program is that these companies will work with private-sector co-investors to match these funds as part of a larger effort to support the development of businesses in high-growth industries throughout the state.
“For early-stage startup companies, access to capital is critical to ensuring the vitality of those businesses and sustaining them in the long term,” Hochul said in a release. “The Pre-Seed and Seed Matching Fund Program will help these businesses gain their footing and create the jobs of the future while expanding access to funding in traditionally underserved communities.”
According to the press release from the governor’s office, funding for the program comes from the State Small Business Credit Initiative, a federal American Rescue Plan effort that aims to provide funds for small businesses that have struggled economically during the COVID-19 pandemic.
Meanwhile, New York Ventures, the state’s venture capital arm, will manage the program with a particular focus on advancing the state’s “technology markets, including advanced manufacturing, agricultural tech, climate tech, consumer tech, data/SaaS/AI, fintech, health care, Life Sciences and BioTech, and medical devices,” according to the release.
Also on New York Ventures’ radar is expanding access to venture capital to entrepreneurs of color and underserved regions.
To qualify, applicants must have raised at least $2 million of dilutive funding, be registered to do business in the state and agree to have headquarters and at least one C-suite employee in New York.
