Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: Wednesday, September 1, 1999

Release #321-99

Contact: Mayor's Press Office 212-788-2958
Speaker's Press Office 212-788-7113


CITY LAUNCHES $25 MILLION EMERGING INDUSTRIES FUND TO ASSIST FAST-GROWING ADVANCED TECHNOLOGY COMPANIES

Mayor Rudolph W. Giuliani and City Council Speaker Peter F. Vallone today announced the creation of the Emerging Industries Fund, a $25 million fund that will provide equity and/or debt financing for small, fast-growing companies in New York City. Designed to assist companies seeking first-round investment, the fund will be available to companies in the Internet, biotechnology, software and telecommunications industries.

"The Emerging Industries Fund is a great asset to New York City's advanced technology community and to the City as a technology hub," said Mayor Giuliani. "High technology, telecommunications and biotechnology will greatly influence the global marketplace of the new millennium, and the City's commitment to the growth of these industries will help to keep New York City in the forefront of the new economy."

The Fund's investments may range from $100,000 to $1,500,000 with an emphasis on investments of less than $750,000, and they may be structured as debt, equity or a combination of the two. The New York City Economic Development Corporation (EDC) will be responsible for reviewing the business plans of eligible companies and selecting appropriate candidates. EDC will also present investment proposals for approval to a seven-member board that will be delegated by the City Council and Mayor Giuliani.

"From the beginning of the technology revolution, New York City has been an incubator for small firms offering cutting edge products and services," said Speaker Vallone. "From 55 Broad Street to loft spaces in SoHo, we have the people, the talent and the resources for technology firms to thrive. This fund program marks our investment in emerging industries that contribute to the continued growth of New York City as a technology center of the world."

"We know how difficult it can be for young companies to obtain early-stage financing," said Deputy Mayor for Economic Development, Planning and Administration Randy Levine. "The Emerging Industries Fund will offer technology companies this much-needed capital and in turn the City will benefit from the revenue generated by this burgeoning sector."

All companies eligible for assistance by the fund must be located in, or moving to, New York City. EDC will issue requests for proposals to select a venture capital firm to serve as advisor, and a law firm to draft investment proposals. A portion of the Fund may be used to develop technology programs and commercialization in the City.

"With the Discovery Fund, the Giuliani Administration forged a strong partnership with the City's high-tech entrepreneurial community," said EDC President Michael Carey. "The $25 million Emerging Industries Fund will continue this tradition, and will create technology-related jobs for New York City's highly talented technology workforce."

EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, it helps develop businesses and create jobs throughout the five boroughs.

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