Innovation Venture Capital Fund Program

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.

Application Deadline: Open application

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;

• 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:

NYC Seed

Funding Opportunity: Through the combined efforts of New York City’s most innovative organizations, NYC Seed provides funding, mentoring and support to create the next generation of companies in New York City. 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.

Application Deadline: Open application. Applicants should e-mail an executive summary and presentation deck to owen@nycseed.com.

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

The Partnership Fund

Funding Opportunity: The Partnership Foundation, an “Evergreen” fund, reinvests gains in projects. The Partnership Foundation, an “Evergreen” fund, reinvests gains in projects. Since its inception in 1996 the fund has invested in excess of $195 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.

Application Deadline: Open application

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.

Industry Specific: Focused on 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.

Pre-Seed and Seed Matching Fund Program

Funding Opportunity: The State Small Business Credit Initiative (SSBCI) is providing $30 million for the Pre-seed and Seed Matching Fund Program, which aims to support high-growth startup companies in their early stages of development. The program is administered by NY Ventures, the state's venture capital arm for innovative businesses. It will offer equity investments between $50,000 and $250,000 to early-stage businesses. These investments must be matched by the private sector, with a requirement of at least $1 of private sector investment for every $1 invested by NY Ventures.

Application Deadline: Open application

Requirements:

• Company has raised $2M or less of dilutive funding prior to current round

• Focus on expanding access to venture capital across New York State, particularly for underserved geographies and historically marginalized individuals and companies

•  Preference for companies structured as a C-Corporation to align with investment yield and growth potential objectives

• Company agrees to create economic impact in NYS by having its headquarters and at least one C-suite employee in NYS 

• Company must be registered to do business in New York and in good standing.

• Company must raise matching funds from qualified private sector investors; investors who provide private sector match can be part of an investment entity (venture capital fund, angel fund, family office, investment partnership, or LLC), an individual member of an organized investment group who is an accredited investor and qualified purchaser, or an individual that can otherwise establish credibility as an accredited investor.

• Private capital raised within the same funding round as the SSBCI funding may be counted toward the 1:1 financing ratio if the financing transaction occurs no earlier than 90 days before the SSBCI investment (as specified by a term sheet or similar agreement)

• Investment can be in form of convertible debt, SAFE or equity financing.

Industry Specific: All industries are eligible. However, an example of focus areas include:

• Advanced Manufacturing

• Agricultural Tech

• Climate and Energy Tech

• Consumer Tech

• Data/SaaS/AI

Employee Training Incentive Program

Funding Opportunity: The Employee Training Incentive Program provides refundable tax credits to employers for skills training that upgrades, retrains or improves the productivity of employees. Also available for internship programs that provide training in advanced technology, life sciences, software development or clean energy. Employers can receive a credit of 50% of eligible training costs, up to $10,000 per employee receiving eligible training, for employees and a credit of 50% of the stipend paid to an intern, up to $3,000 per intern.

Application Deadline: Open application. Contact sm.economic-incentives@esd.ny.gov for more information.

Requirements:

• Businesses must make a significant capital investment resulting in a benefit-cost ratio of at least 10:1 in relation to the eligible training project

• Businesses must operate predominantly in a strategic industry based upon criteria found here.

Industry Specific: Life sciences. See here for further elaboration.

The following industries are prohibited from participating:

•  Accounting firms

• Businesses engaged in the generation or distribution of electricity, the distribution of natural gas, or the production of steam associated with the generation of electricity

• Businesses providing business administrative or support services

• Businesses providing personal services

• Businesses providing utilities

• Finance and financial services retail and wholesale businesses

Excelsior Jobs Program

Funding Opportunity: Businesses in the Excelsior Jobs Program may qualify for four fully refundable tax credits. Businesses claim the credits over a benefit period of up to 10 years. Credits are generally available for strategic businesses such as high tech, bio-tech, clean-tech and manufacturing that create jobs or make significant capital investments.

Application Deadline: Open application

Requirements:

To earn credits, businesses must first meet and maintain the following established job and investment thresholds:

1. Excelsior Jobs Tax Credit: a credit of 6.85% of wages

2. Excelsior Investment Tax Credit: valued at 2% of qualified investments

3. Excelsior Research and Development Tax Credit: a credit of 50% of the Federal Research and Development credit up to 6% of research expenditures in New York State

4. Excelsior Real Property Tax Credit: available to businesses locating in certain distressed areas and to businesses in targeted industries that meet the higher employment and investment thresholds required to be considered a Regionally Significant Project.

A “Regionally Significant Project” means:

• a manufacturer creating at least 50 net new jobs in the stat;

• a business creating at least 20 net new jobs in agriculture in the state;

• a financial services firm or back office operation creating at least 300 net new jobs in the state and making a significant capital investment in the state of at least $6,000,000;

• a distribution center creating at least 300 net new jobs in the state and making a significant capital investment in the state of $30,000,000; or

• a scientific research and development firm creating at least 20 net new jobs in the state and making a significant capital investment in the state of at least $6,000,000.

Other businesses creating 300 or more net new jobs in the state and making a significant capital investment in the state of at least $6,000,000 also may be considered eligible as a regionally significant project by the Commissioner. In order to be a regionally significant project under this subdivision a business must export a substantial portion of its products or services outside of the state or outside of a metropolitan statistical area or county within the state.

The following strategic businesses located in or planning to locate in New York State that will create or retain jobs and make significant capital investments are eligible: 

• Other firms creating at least 150 net new jobs and investing at least $3,000,000

• Firms in strategic industries that make significant capital investment that have at least 25 employees; manufacturing firms who retain at least 5 employees are also eligible to apply for participation in the Program

Industry Specific: Yes. Target industries include biotechnology, pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture and manufacturing.Life Sciences R&D Tax Credit Program

Life Sciences R&D Tax Credit Program

Funding Opportunity: The program offers annual credits of up to $10 million to incentivize businesses to carry out their R&D activities within the state. Eligible life sciences companies can receive a refundable credit, with rates of 15% for those employing 10 or more individuals and 20% for those with fewer than 10 employees. This credit can be claimed for up to three consecutive years and is capped at $500,000 per year, with a lifetime limit of $1.5 million.

Application Deadline: Open application. Completed applications should be sent to LifeScienceTC@esd.ny.gov.

Requirements: 

• A new business entity that devotes the majority of its efforts to the various stages of research, development, technology transfer and commercialization related to any life sciences field

• Must be a new business

Industry Specific: Life sciences. See here for further elaboration.

NYC Biotechnology Tax Credit

Funding Opportunity: Between January 1, 2023, and January 1, 2026, emerging companies can apply for up to $250,000 in Credit against certain New York City taxes, with a total annual cap of $3 million. Eligible companies who owe less than $250,000 in taxes can receive the excess credit amount in the form of a refund. Qualifying expenses include property purchases, research, employee training, and costs associated with relocating from an academic business incubator to another location within the city. Specific percentages and limits apply to each category of expenses.

Application Deadline: Submit your application by January 15 following the calendar year for which you would like to claim the credit. If this date falls on a weekend or a holiday, the deadline extends to the next business day. Upon approval, the Department of Finance will issue a Certificate of Eligibility. Applications for 2023 must be filed by January 16, 2024.

• Online application: Business Tax e-Services (coming soon)
  

• Downloadable form: NYC Biotechnology Tax Credit Application (PDF)

The tax credit is valid for taxable years from January 1, 2023, to December 31, 2025. It can be claimed for a maximum of three consecutive tax years.

Requirements: To qualify for the Biotechnology Tax Credit, a company must satisfy each of the following six criteria:

• Engage in biotechnology.

• Meet one or both of the following requirements:

  1. The company must have a ratio of research and development funds to net sales that is equal to or exceeds the average ratio of all companies surveyed by the National Science Foundation.

  2. The primary products or services of such company must be classified as emerging technologies.

• Employ 100 or fewer full-time employees, with at least 75% based in New York City.

• Have a research and development to net sales ratio of at least 6%.

• Have annual product sales not exceeding $10 million.

• Have gross revenues (including the gross revenues of affiliates and related members) of no more than $20 million in the preceding year.

Industry Specific: Life sciences and biotech. See more details here.

Qualified Emerging Technology Company Incentives

Funding Opportunity: The New York State Department of Taxation and Finance offers three types of tax credits are available for Qualified Emerging Technology Companies (“QETC”) including:

1. Employment credit for job creation

2. Facilities, operations, and training credit

3. Capital tax credit for investors in qualified emerging technology companies

Application Deadline: Open application

Requirements:

• QETC Employment Credit:

  • You’re entitled to this refundable credit if you or your business is a QETC, and the average number of individuals employed full‑time by the business in New York State during the tax year is at least 101% of the business’ base-year employment number.

  • The amount of the credit is equal to the average number of full-time employees in New York State for the current tax year, minus the business’ base‑year employment number, multiplied by $1,000 and is available for three consecutive years.

• QETC Capital Tax Credit:

  • You’re entitled to this nonrefundable credit if you or your business made a qualified investment in a certified QETC.

  • The tax credit is:

    • 10% of qualified investments in certified QETCs, if you or your business certifies to the Commissioner of Taxation and Finance at the time the credit is claimed that the qualified investment will not be sold, transferred, traded, or disposed of within four years from the close of the tax year in which the QETC capital tax credit is first claimed; or

    • 20% of qualified investments in certified QETCs, if the you or your business certifies to the Commissioner of Taxation and Finance at the time the credit is claimed that the qualified investment will not be sold, transferred, traded, or disposed of within nine years from the close of the tax year in which the QETC capital tax credit is first claimed.

Industry Specific: Yes. This program works with businesses in the technology sector.

Start-Up New York

Funding Opportunity: START-UP NY offers new and expanding businesses the opportunity to operate tax-free for 10 years on or near eligible university or college campuses in New York State.

Application Deadline: Open application

Requirements: To participate in START-UP NY, your company must meet the following requirements:

• Be a new business in New York State, or an existing New York business relocating to or expanding within the state. Start-Up NY is also available to qualified international companies interested in relocating, expanding, or starting a business in New York State.

• Partner with a New York State college or university

• Create new jobs and contribute to the economic development of the local community

Industry Specific: Yes. The industries listed below are NOT typically eligible to join START-UP NY, but may be eligible for one of the many other business incentive programs offered by New York State:

Film & Game Design Tax Credits

BioBAT

Funding Opportunity: BAT provides executive, back office, distribution space; showrooms; and other, more tailored spaces.  Located within BAT’s Building A is BioBAT which will ultimately provide 500,000 square feet of commercial biotech space.  BioBAT’s anchor tenant, the International Aids Vaccine Initiative (“IAVI”), occupies a 40,000-square-foot space.

Application Deadline: Open application

Industry Specific: BioBAT is currently accepting applications from biotech and technology firms at all stages of growth.

• Bioinformatics, Contract research organizations, Life Sciences, Medical devices, Non-profit research organizations, Pharmaceuticals

BXL Business Incubator

Funding Opportunity: Located in the BankNote Building at 890 Garrison Avenue in Hunts Point, the nearly 11,000-square-foot Bronx Business Incubator provides approximately 120 workstations—split between offices, desks, and co-working space for freelancers—targeted to startup businesses and entrepreneurs across industries including new media, technology, biomedicine, healthcare, and professional services. Tenants are able to lease space on a month-to-month basis. The incubator is operated by Business Outreach Center Network (“BOC”).

Application Deadline: Open application

Requirements: See specific membership programs for requirement details - Membership Opportunities

Industry Specific: No

Entrepreneur Space

Funding Opportunity: Entrepreneur Space provides new businesses with a commercial kitchen for rent, along with free or low cost business counseling. It aims to reach small and startup businesses that aren’t ready to take on the obligations and cost of a long-term lease.

Application Deadline: Applicants must first take a tour of the facility and meet with the Coordinator

Requirements: Potential kitchen/office clients need to make an appointment to tour the facility and meet with the Coordinator.  Kitchen tours are held Mondays at 6:00 P.M. and Wednesdays at 11:30 A.M. Office tours are by appointment only. After seeing the facility and reviewing your business plan, the Coordinator Kathrine Gregory determines the applicant’s readiness. Eligibility after submission is based upon the following basic requirements:

• “Business Roadmap” - a series of questions aimed at building applicants’ business plans

• Certificate of insurance including worker’s compensation for any employees

• Proof of business registration and tax EIN number

Industry Specific:  Artisan food manufacturers and small businesses

ideaHub Hofstra

Funding Opportunity: Hofstra’s Institute of Innovation & Entrepreneurship offers a 4,811 sq ft incubator called ideaHUB. Serving as a collaborative workspace for students, mentors, and startups, ideaHUB runs a virtual and in-person New York State Certified Business Incubator. The physical space includes a high-tech Maker Space, with equipment including, but not limited to a Stratysys Mojo, 3D Scanners, a Full Spectrum Laser Cutter, an HTC Vive, a Phantom 3 Drone, etc.

Application Deadline: Open application. If interested, email Sharon.N.Goldsmith@hofstra.edu.

Requirements: Must be a startup

Industry Specific:  No

Varick Street Incubators

1. NYU Tandon School of Engineering

Funding Opportunity: The NYU Tandon Future Labs are the first public-private partnership with New York City tasked with creating a sustainable incubation program focused on increasing the success rate of new ventures and generating positive economic impact. Startups focused on AI, digital media, clean energy, or any other world-changing tech will find the guidance, expertise, resources, and community needed to succeed in today’s innovation economy.

Application Deadline: Open application.

Requirements: Seed to Series A

Industry specific: The incubator is open to all start-up businesses, but is particularly targeted toward the following sectors:

3. Urban Future Lab

Application Deadline: Open application.

Funding Opportunity: Located in Long Island, the space offers private studios, co-working desks, The Urban Future Lab (“UFL”) is New York City’s hub for smart cities, smart grid and clean energy. The space hosts several programs focused on educational, policy and market solutions to the issues of sustainability, including the Accelerator for a Clean and Renewable Economy (“ACRE”). ACRE is a business incubation program that supports early stage business ventures with innovative technologies and new business models for a greener, smarter and more connected world. In addition, UFL is home to PowerBridgeNY, a proof-of-concept center, and Clean Start, a cleantech training program. 

Requirements: ACRE’s ideal members are commercial-ready startups (post- ideation with MVP) that can demonstrate a positive impact on the environment (technology or innovation in renewable energy, energy efficiency, waste, water, food and agriculture, transportation/mobility, and carbon emissions reduction)

Industry Specific: ACRE seeks to support early stage companies in the cleantech industry. This includes, but is not limited to, companies with innovative technology or business models in energy efficiency, clean energy, and smart cities.

Preferred Industries:

• Clean Technology

• Industrial/Energy

• Real Estate

• Transportation

NYSERDA

NYSERDA is helping the growth of cleantech startups by providing funding for hiring and training. Requirements and exact criteria depend on the program.