- By New York State Governor's Office
- Business & Technology
Governor Andrew M. Cuomo announced Tuesday that the $45.9 million Innovate NY venture capital fund has been fully invested. Since the fund's launch in 2012, 81 companies have received more than $370 million in investment capital, leading to the creation or retention of 2,250 jobs. A majority of investments were made in companies located upstate. The Innovate NY fund is managed by New York Ventures, the venture capital investment arm of Empire State Development, and supports the state's entrepreneurial culture of new and innovative startups.
"New York's strategic investments in the next generation of innovative startup companies have fostered growth in our thriving tech industry while supporting thousands of jobs across the state," Cuomo said. "This administration has already made great strides to support these seed-stage businesses, and we look forward to seeing these companies continue to make significant contributions to our economy and help build a brighter future for New York."
"Since 2012, Innovate NY has invested in companies resulting in thousands of jobs, a majority of them in upstate New York," said Lieutenant Governor Kathy Hochul. "We're committed to supporting innovative businesses to ensure their expansion and success. Initiatives such as Innovate NY are growing the high-tech industry and advancing New York's economy."
Innovate NY operates through a "fund-of-funds" structure in which third-party investment managers are competitively selected to manage the investment activity on a statewide basis. ESD selected seven venture capital funds to invest in seed-stage, startup companies, which usually have not yet established commercial operations, throughout the state. Innovate NY invests in these seed-stage businesses to support innovation, job creation and high-growth entrepreneurship throughout New York. Investments can be used to continue research and development, develop and test products, market research or build management teams. The fund required a ratio of 2:1 private-public investment.
Innovate NY was supported by $35.6 million from the U.S. Department of the Treasury and $10.3 million from Goldman Sachs. The Fund's capital was matched with $335 million in private sector investment funding, yielding $372.5 million in investment capital for these startup and seed-stage companies. The companies that received investment capital are expected to continue adding jobs.
Below is a list of the investment entities participating in Innovate NY:
- Cayuga Ventures
- Excell Partners
- ff Venture Capital
- Golden Seeds
- Partnership Fund for New York City
- SCP Incubators / Z80 Labs
- Stonehenge Growth Equity Partners
Empire State Development President, CEO and Commissioner Howard Zemsky said, "Smart, innovative entrepreneurs are driving the cutting edge of New York's economy, and we are proud to see Innovate NY succeed in its mission to foster the next generation of the Empire State's thriving start-up businesses."
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