Innovation Venture Capital Fund Program

Funding Opportunity: The state has devoted $100 million – with an additional $35 million of SSBCI funding – to the New York State Innovation Venture Capital Fund, a direct investment fund for Seed through Series B technology companies across New York State. This is a co-investment opportunity, primarily for Seed and Series A round companies using technologies in the following sectors:

• Climate Technology

• Health Tech & Life Sciences

• Ag-tech Systems

• Advanced Manufacturing

• Social Impact SaaS

• Data

• Other critical technologies

The Fund’s companies make a commitment to building a diverse workforce in New York State, generating new jobs and other economic activity. We also consider companies willing to relocate to New York.

Application Deadline: Open application; to apply, email New York Ventures at newyorkventures@esd.ny.gov.

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, Partnership for New York City Fund, The New York State Foundation for Science, Technology and Innovation and Polytechnic Institute of NYU. 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.

Eligibility 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. In addition to financial support, Empire State Development offers the tools and key introductions needed to help companies reach the next level.

Application Deadline: Open application; access the application here.

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 and must be on same terms as private capital that NYS is matching

Industry Specific: A range of industries are eligible, with a particular focus across all technology markets. Examples of focus areas include:

• Advanced Manufacturing

• Agricultural Tech

• Climate and Energy Tech

• Consumer Tech

• Data/SaaS/AI

The Capital Access Program

Application Deadline: Varies depending on participating lenders’ specifications.

Funding Opportunity: New York State’s Capital Access Program (CAP) has been expanded to $29.4 million to provide matching funds to financial institutions for loan loss reserves as an incentive to increase small business lending. CAP is a loan loss portfolio insurance program designed to increase financing opportunities for New York State’s small businesses, socially and economically disadvantaged individual (SEDI) business owner* and very small businesses (VSB)**. Through CAP, Empire State Development (ESD) provides funding to a dedicated loan loss reserve account which can be utilized if a loan defaults. The reserve account begins with the borrower and lender making a shared contribution of 3 to 7 percent of the loan amount, which is then matched by Empire State Development.  The reserve account balance increases with each loan enrolled and can provide 100 percent reimbursement to a lender for any enrolled loan that defaults.

*An SEDI is a business enterprise that certifies that they are owned and controlled by individuals who have had their access to credit on reasonable terms diminished as compared to others in comparable economic circumstances due to their:

• Membership of a group that has been subjected to racial or ethnic prejudice or cultural bias within American society;

• Gender;

• Veteran Status;

• Limited English proficiency;

• Physical handicap;

• Long-term residence in an environment isolated from the mainstream of American society;

**A VSB is a business with fewer than 10 employees at the time of the loan, investment, or other credit/equity support and includes independent contractors and sole proprietors.

Industry Specific: No

The New York Forward Loan Fund 2

Application Deadline: Open application; pre-apply here.

Funding Opportunity:  The program offers loans of up to $150,000 between 36 and 72 months for small businesses and nonprofits. Loan funds are at a fixed interest rate, between 8.75% to 11.75%, and can be spent on equipment, payroll, utilities and rent, supplies, marketing and advertising, renovations, and other expenses.

Eligibility Requirements:

• Existing operations in New York State

• 100 or fewer full-time employees

• Less than $5 million in gross annual revenue

• Been in business for at least 1 year prior to application

• Demonstrated ability to repay loan through previous and projected cash flow

Industry Specific: No, but industries that have benefitted include professional services, real estate, transportation, construction, accommodation, and food services.

Regional Revolving Loan Trust Fund

Application Deadline: Open application. A written business plan, business and personal financial statements and financial projections are required of all applicants. Contact the administering corporation nearest you (located on the website).

Funding Opportunity: The RRLTF provides working capital loans to small businesses in New York State, offering up to $100,000 or 90% of the project cost, whichever is lower. This program is funded by Empire State Development (ESD) and operated by regional non-profit organizations to support small businesses, stimulate economic growth, create jobs, and assist businesses that have difficulty obtaining favorable financing terms from commercial lenders.

Requirements: Priority is given to projects which

• Create or retain jobs

• Are located in distressed areas

• Are owned by minority or women entrepreneurs or firms which employ minorities, women or displaced workers

• Leverage other public and or private dollars.

Industry Specific: No

Small Business Revolving Loan Fund (round 2)

Application Deadline: Open application; program lenders are the primary point of contact for borrowers, and each have their own loan application process. Please contact the lenders listed here for more information regarding program loans, applications, and terms.

Funding Opportunity:  Funding Opportunity: The New York State Small Business Revolving Loan Fund Round 2has been given $55,583,258 from the State Small Business Credit Initiative (SSBCI) to provide shorter-term financing to address capital access disparities. The program focuses on supporting new companies, underbanked communities, and small businesses, particularly those owned by minorities, women, veterans, and those located in economically distressed areas. Program loans shall be provided via Community Based Lending Organizations (CBLOs). CBLO loans will be microloans (ranging from $500 to $25,000) or regular loans (over $25,000 but not exceeding $20,000,000). Program funds used by CBLO cannot exceed 50% of the principal lone and shall not be greater than $125,000.

Requirements: 

• The business enterprise is resident in and authorized to do business in New York State

• The entity is independently owned and operated

• The entity is not dominant in its field

• The entity employs one hundred or fewer persons on a full-time basis

Industry Specific: No

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

NY Designs

Funding Opportunity:  Located in Long Island, the space offers private studios, co-working desks, meeting spaces, and a 5000 sq ft Makerspace. It also offers a wide range of resources, including mentorship, funding, workshops, and networking opportunities. NYDesigns offers desk and studio space for small businesses in the incubation phase, as well as memberships for individuals to access and utilize the Makerspace. Membership options can be viewed here

Application Deadline: Open application

Industry Specific:  No

1. NYU Tandon School of Engineering - Varick Street Incubators

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