Mintz Levin’s Equity Financing Guide

Public Resources for New York Entrepreneurs



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New York Digital Health Accelerator

Application Deadline: The 2017 NYDHA program will open the application process in Fall 2017.

Funding Opportunity: The New York Digital Health Accelerator (“NYDHA”) is a program run by the Partnership Fund for New York City and the New York eHealth Collaborative (an affiliate of New York State Department of Health) for growth-stage digital health companies developing cutting edge IT solutions in patient engagement, care coordination, telehealth, population health and behavioral health tech. The five-month program is unique in that entrepreneur participants are nominated and selected by New York State’s leading healthcare provider organizations. Their senior level executives — along with NYDHA’s strategic investor syndicate and entrepreneurs-in-residence — provide participants with product feedback and mentoring.

Requirements: NYDHA is looking for scalable, growth state companies that:

  1. have developed healthcare IT products that are already in use – or in advanced discussions – with at least one healthcare provider in New York State;
  2. have technologies related to patient engagement, care coordination, population health, behavioral health, and telehealth,
  3. the company must be nominated by a NY based healthcare provider organization, investor or pharmaceutical company, or a company which has not been nominated may request that a provider/or investor nominate the company.
  4. All companies participating must have at least a portion of their management team to New York for the duration of the program

Industry Specific: Growth-stage digital health companies that aim to develop cutting edge IT solutions in care coordination, patient engagement, behavioral health tech, population health, and telemedicine. NYDHA is NOT looking for companies in the pharmaceutical, biotech, surgical medical device and diagnostics spaces. 


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New York City Entrepreneurial Fund

Application Deadline: Open application.

Funding Opportunity: The New York City Entrepreneurial Fund (“NYCEF”) is a $22 million fund that provides early stage capital to New York City-based technology start-up companies that are identified by the fund manager as having a commercially viable model. Qualifying ventures can receive up to $750,000 for the first round of investment.

Requirements:

  • Headquarters in New York City and subject to corporate taxation as a resident of New York City;
  • Most senior executive working primarily in New York City;
  • Technology or technology enabled company;
  • Not engaging in the business of firearms, gambling, alcohol, tobacco, or other lines of business that would preclude procurement by the City of New York.

Industry Specific: Technology or technology-enabled companies.


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NY Fashion Tech Lab

Application Deadline:

  • Application opens October 2017
  • Application closes December 2017

Funding Opportunity: The New York Fashion Tech Lab is a community-driven, collaboration & business development platform. The program was co-founded by the Partnership Fund for New York City, Springboard Enterprises and major fashion retailers to support women-led companies that have developed innovations at the intersection of fashion, retail and technology.

Requirements:

  • Women-led companies only. There must be a woman on the management team with significant equity stake.
  • Early and growth-stage companies, with at least a working beta version of the technology
  • Access to senior level executives at fashion retailers could have a meaningful impact on the company’s growth prospects
  • A solid founding team that includes at least one technical member
  • Must be located in NYC for the 12-week program (March – June)

Industry Specific: Companies at the intersection of fashion, retail and technology.


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FinTech Innovation Lab NYC

Application Deadline: No deadline listed online.

Funding Opportunity: The Partnership Fund for New York City and Accenture launched the annual FinTech Innovation Lab in 2010 to support early and growth stage companies developing cutting edge technology products for the financial services industry. Participants are paired with leading financial services firms who provide product refinement guidance, beta testing and deployment. They also receive mentorship from highly successful FinTech entrepreneurs and have the opportunity to present their companies to potential investors.

Requirements:

  • Your company must fit into one of the following two categories:
    • An early and growth-stage company with at least a beta technology/product, especially those which will benefit from the senior access and relationships at the Lab’s 14 participating financial institutions; or
    • A growth-stage company that has products being deployed outside financial services that are interested in entering the financial services vertical.
  • The core team must stay in NYC for the duration of the three month program

Industry Specific: Financial services industry.


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Innovation Technology Commercialization Investment Fund

Application Deadline: Deadlines and applications vary based on your company’s region

Funding Opportunity: The Innovation Technology Commercialization Investment Fund (the “Innovation TC Fund”) is an $8 million pool of capital focused on pre-seed stage companies across New York State. The Innovation TC Fund operates through a fund-of-funds structure to provide critical pre-seed funding to incentivize commercialization and new business formation, facilitating the transition of ideas and research into marketable products. Four investment entities were selected to manage the fund’s activities and the investment entities are separated by targeted regions. The Innovation TC Fund investment entities will make investments of up to $100,000 per eligible company, and all require at least a 1:1 match from private sector funding sources at the time of investment.

Requirements:

  • Engaged in the commercialization of an emerging technology with the potential to achieve significant technical advances and innovation;
  • At the stage of development appropriate for initial equity financing;
  • Located in, or agree in writing to be located in, New York State and have the potential to generate additional economic activity in the State; and
  • Able to secure a 1:1 match from private sector funding sources at the time of investment.

Industry Specific: Emerging technology field.


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Innovation Venture Capital Fund Program

Application Deadline: Open application.

Funding Opportunity:

The Innovation Venture Capital Fund is a $100 million venture capital fund that invests in seed and early stage businesses throughout New York State. The Fund provides critical funding to promote the commercialization of new technologies, encourage job creation and drive economic growth.

The Fund focuses on Series A investments and considers occasional and opportunistic seed rounds.  It provides capital for first-time CEOs and/or founders and considers industry segments and geographic regions not adequately served by the venture community. The Fund makes direct equity investments in companies with an emphasis on strategic industries such as information technology, life sciences, clean energy, and advanced manufacturing.  Initial investments typically range in size from $500,000 to $1.5 million. All investments by the Fund require at least a 2:1 match from private sources at the time of investment.

Requirements:

  • Must be located in, or agree in writing to be located in, New York State and have the potential to generate additional economic activity in the State; and
  • Participate in an emerging technology field and are achieving, or have the potential to achieve, technological advances and innovation.

Industry Specific: Industries where New York State has particular strengths or those that are strategically important.  These include:

  • Information Technology – hardware, software, and technology-enabled services
  • Life Sciences – pharmaceuticals, diagnostic and medical devices
  • Clean energy – energy generation, management and storage
  • Advanced Manufacturing – materials, processes or equipment

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NYC Seed

Application Deadline: Open application.

Funding Opportunity: NYC Seed funds seed-stage technology entrepreneurs in New York City. NYC Seed is a partnership between ITAC (www.itac.org), Partnership for New York City Fund (fund.pfnyc.org), The New York State Foundation for Science, Technology and Innovation (www.nystar.state.ny.us) and Polytechnic Institute of NYU (www.poly.edu). NYC Seed will invest up to $200,000 (depending on the number of founders and the amount needed for certain milestones), with the goal of launching an initial product. NYC Seed will provide guidance along with connections to a network of experienced entrepreneurs, venture capitalists and companies in New York City.

Requirements:

  • A team of at least two founders; one technical founder is preferred
  • A software or web technology product or service
  • The company is headquartered in NYC with a majority of team member located here
  • A working prototype

Industry Specific: Software and technology companies.


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The Partnership Fund

Application Deadline: Open application.

Funding Opportunity: The Partnership Foundation, an “Evergreen” fund, reinvests gains in projects. Since its inception in 1996 the fund has invested in excess of $150 million. The fund process of identifying and supporting entrepreneurs is assisted by a team of business leaders who participate on the fund’s sector advisory boards and investment evaluation teams.

Requirements:

  • Location: Must be located in New York City (or in certain cases, committed to relocating prior to funding), with special priority for projects targeted to economically distressed communities across the five boroughs
  • Growth Potential: Significant growth potential, including creation of new, permanent jobs and/or other significant benefits to the city and the local economy
  • Sector: Fits with their target growth sectors
  • Business: Solid business plan and experienced management
  • Recovery of Investment: Ability to recover investment within 5 years
  • Positive Contributions to NYC: Contribution to health, education and general quality of life in the city
  • Investor Network’s Added Value: Evidence that the Partnership Fund’s investor network will add value, beyond the financial investment, to the development of the enterprise
  • Early Stage Tech Specific Requirement: With respect to early stage technology companies in our target sectors, the commitment or potential to attract a qualified venture capital firm as lead investor.
  • Industry Specific: Participants should be companies working in energy and infrastructure, healthcare, and retail and tourism as outlined below.
  • Energy & Infrastructure: The fund is actively investing in NYC’s sustainable energy and technology companies with a particular focus on investments in larger scale projects to improve the city’s sustainability infrastructure. 
  • Health Care:
    • The fund is looking to catalyze the growth of jobs and economic activity in two new sectors:
      • Digital Health – leverages the size of the city’s health care delivery system
      • Life Sciences – leverages the extensive, world class biomedical research at the city’s universities. The fund has committed $40 million to NYC’s life sciences sector.
    • The fund is also supporting non-profits that develop new models to address the health care needs of New Yorkers, while creating new jobs.
  • Retail & Tourism: The fund is supporting businesses and non-profits that create jobs for New York’s working and middle class and that bring new economic activity to low income and distressed neighborhoods is an important priority for the fund. They have a particular interest in food processing businesses which are capitalizing on growing consumer interest for locally produced food while providing training and a good career path for entry level workers.