Tapping City-based Capital Coffers
New York and other cities are launching their own venture funds. Are they good for your business?
New York City tech companies in need of cash now have a new option: the New York City Entrepreneurial Fund. In May, Mayor Michael Bloomberg announced the $22 million fund, which the city operates in conjunction with FirstMark Capital, a New York-based venture capital firm, as part of a broader economic development initiative. The fund, which includes $3 million of the city's investment and a pledge of matching support--often in multiples from FirstMark--funds seed-stage technology entrepreneurs, for as much as $750,000, while providing mentoring and support.
FirstMark CEO Lawrence Lenihan says that the fund has made one investment and has two that are in "deep stages of due diligence." The fund has many more in the works, he says. Companies apply through the fund's website, firstmarkcap.com/firststeps.
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