Governor Hochul Announces Launch of $30 Million Pre-seed and Seed Matching Fund Program

January 5, 2023

Program Will Invest Up To $250,000 in Early-Stage Startup Companies With Matching Funds From Private Sector

Part of New York's $500 Million Federal Funding Allocation to Support Small Businesses, Particularly in Traditionally Underserved Communities

Applications and Program Information Available Here

Governor Kathy Hochul today announced the launch of the $30 million Pre-Seed and Seed Matching Fund Program, which will offer early-stage start-up companies $50,000 to $250,000 in growth assistance which they will match with funds from private sector co-investors. The program will support the development of businesses in high-growth industries and the creation of 21st century jobs. Funding for the program comes from the State Small Business Credit Initiative, part of the federal American Rescue Plan, to support small businesses, especially those owned by socially and economically disadvantaged individuals and very small businesses which traditionally do not receive sufficient access to capital or support.   

"For early-stage startup companies, access to capital is critical to ensuring the vitality of those businesses and sustaining them in the long term," Governor Hochul said. "The Pre-Seed and Seed Matching Fund Program will help these businesses gain their footing and create the jobs of the future while expanding access to funding in traditionally underserved communities. I thank our federal partners for helping to secure this funding and extending a lifeline to New York's small business ecosystem."  

Empire State Development President, CEO and Commissioner Hope Knight said, "Even companies that are a household name now, started out as just an idea. Through the Pre-Seed and Seed Matching Fund Program, we will target promising startups and very small businesses and ensure that these good ideas become a reality in New York State, especially in traditionally underserved populations and markets."  

The Program is managed through Empire State Development's NY Ventures, the state's venture capital arm, and will be focused on technology markets including advanced manufacturing, agricultural tech, climate tech, consumer tech, data/SaaS/AI, fintech, healthcare, Life Sciences and BioTech, and medical devices. Pre-seed funds are typically the hardest venture capital funds to access for new high-growth businesses, which is why NY Ventures is offering them through this program. To qualify, applicants must have raised less than $2 million of dilutive funding to date. All applicants must be registered to do business in New York State and agree to create economic impact in New York by having headquarters and at least one C-suite employee in state.

Read the full press release here.