Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Thursday, March 9, 2000

Release #068-00

Contact: Mayor's Press Office (212) 788-2958
View the Mayor's Press Conference
Download Media Player Graphic
  Speaker's Press Office 212-788-7113




MAYOR GIULIANI AND SPEAKER VALLONE ANNOUNCE
APPOINTMENT OF EMERGING INDUSTRIES FUND ADVISORY BOARD

$25 Million Venture Capital Fund To Provide Assistance To Emerging Industries

Mayor Rudolph W. Giuliani and City Council Speaker Peter F. Vallone today announced the appointment of a seven-member advisory board to the Emerging Industries Fund, a $25 million fund that will provide debt and/or equity financing for small, promising high-tech and biotechnology-related companies in New York City. The advisory board will assist the New York City Economic Development Corporation (EDC), which will manage the Fund on behalf of the City.

"New York City's technology, biotechnology and biomedical communities continue to flourish, and the Emerging Industries Fund is another way to encourage this growth," said Mayor Giuliani. "The Fund will provide some of the City's most innovative young firms with access to first-round financing, which can be difficult to obtain. I am pleased that the Fund's advisory board will bring a range of technology expertise to the Fund."

The advisory board recently held its first meeting, at which two investment advisors and legal counsel were named to the Fund. Each will assist EDC in selecting candidates and structuring investments. Specializing in information technology, venture capital investment firm Draper Fisher Jurvetson Gotham Ventures (DFJ Gotham) will serve as investment advisor, along with biotechnology and biopharmaceutical investment specialist Paramount Capital. Brown Raysman Millstein Felder & Steiner (Brown Raysman) will serve as the Fund's legal counsel. Each advisor was selected pursuant to the Request For Proposals (RFP) process.

"From the beginning of the Internet revolution New York City has been fertile ground for small firms offering cutting edge products and services," said Speaker Vallone. "From 55 Broad Street, to SoHo, to Silicon Alley, we have the people, the talent and the resources for technology 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 for the world."

"With a high-tech industry employing more than 138,000 workers and a biotech community of more than 36,000 professionals, New York City is ripe for a venture capital fund such as the Emerging Industries Fund, which will
capitalize on the tremendous talent here while helping to create new jobs and industry growth," said EDC President Michael Carey.

The Emerging Industries Fund will be available to companies in the Internet, biotechnology, software and telecommunications industries. 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. EDC plans to begin making investments this Spring.

DFJ Gotham is the new East Coast hub for Silicon Valley-based Draper Fisher Jurvetson, which manages over $800 million in assets. Draper has invested in over 150 start-up high-tech firms including Hotmail, GoTo.com, Wit Capital and Trad'ex, and has experienced some of the highest rates of return in the venture capital industry.

Paramount Capital was founded by Lindsay Rosenwald, MD. Mark C. Rodgers, MD is President of Paramount Capital and will manage the fund. Specializing in investments in biotechnology, biopharmaceuticals and healthcare-related medical information technologies, Paramount has invested in a number of companies, including a $2 million investment in PolaRx Biopharmaceuticals, Inc.

With more than 120 attorneys, New York City-based Brown Raysman's areas of expertise include corporate finance, information technology and intellectual property. The firm performs private placement and venture capital transactions for companies such as ClientSoft, Inc. and Inventure.com.

Charged with giving final approval on investments developed by EDC, Advisory Board members include:

Individuals interested in submitting a proposal or seeking more information can e-mail EDC techfnd@nycedc.com or calling 212-312-3600.

www.ci.nyc.ny.us


Go to Press Releases | Giuliani Archives | Mayor's Office | NYC.gov Home Page
Contact Us | FAQs | Privacy Statement | Site Map