Governor Cuomo Announces $45.9 Million Innovate NY Venture Capital Fund Fully Invested

81 Companies Have Received More Than $370 Million in Investment Capital; Companies Receiving Investment Capital Have Created or Retained More Than 2,000 Jobs

February 12, 2019

Governor Andrew M. Cuomo today announced 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," Governor 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.

Read the full press release here.