Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: Monday, August 6, 2001
Release #267-01

Contact: Matthew Higgins / Peter C. Fenty
(212) 788-2958
  Gregory Miley / Bruce Brodoff (EDC) (212) 312-3523


NEW YORK CITY EMERGING INDUSTRIES FUND
ANNOUNCES FIRST INVESTMENT AWARDED

Fund Assists Growing Technology Companies

Mayor Rudolph W. Giuliani and City Council Speaker Peter F. Vallone today announced the closing of the first investment by the Emerging Industries Fund, one of several economic development initiatives administered on behalf of the City by the New York City Economic Development Corporation.

The Fund made a $600,000 equity investment in Vector Therapeutics Corporation, a New York City biotechnology company engaged in research and development of a gene therapy treatment platform for cancer and Hepatitis C.

"We are happy to be able to support Vector Therapeutics through the Emerging Industries Fund and look forward to helping many more small and start-up technology companies," said Mayor Giuliani. "The City's commitment to the growth of the high technology industry will help to keep New York City in the forefront of the new economy."

The Emerging Industries Fund makes early stage investments ranging from $250,000 to $1.5 million in small, promising companies located in or moving to New York City, in industries including biotechnology, biomedicine, software, high-technology, and telecommunications. Paramount Capital LLC is the Fund's investment adviser for biotechnology investments; Draper Fisher Jurvetson Gotham is the adviser for information technology and telecommunications investments.

"We know how difficult it can be for young companies to obtain early-stage financing," said City Council Speaker Vallone. "The Emerging Industries Fund offers technology companies much-needed capital and, in turn, the City will benefit from the revenue generated by this burgeoning sector."

According to Dr. Fred Mermelstein, Director of Venture Capital at Paramount Capital, gene therapy presents an important medical opportunity to cure disease, including hereditary disease, without drugs and their attendant side effects. The Vector Therapeutics technology was developed at New York University by Dr. Daniel Meruelo, a tenured Professor of Pathology and a founder of Vector. The company will use the investment funds to complete its pre-clinical program and to develop and refine the technology for human clinical tests and potential commercialization.

"Under Mayor Giuliani's leadership, New York City's biotechnology industry is expanding," said Deputy Mayor for Economic Development and Finance Robert M. Harding. "Vector Therapeutics joins such City-supported biotechnology initiatives as the Audubon Biomedical Science and Technology Park, the Academic Medicine Development Company, the New York Structural Biology Center and the innovative New York City Cancer Projects -- projects that are attracting world-class talent and biomedical companies to New York City."

The New York University School of Medicine was recently designated to develop a state-of the-art biotechnology center on surplus portions of Bellevue Medical Center. The $500 million Center, which will be developed as the East River Science Park, will include a commercial biotech research and incubator facility, medical staff housing, clinical offices, and a research library. The Center will create approximately 1,500 jobs and foster innovation and increased competitiveness in New York City's biotechnology industry.

"The biomedical industry will be an important national growth sector in the 21st Century," said EDC President Michael G. Carey. "The projects initiated by Mayor Giuliani, along with economic programs and incentives such as the Emerging Industries Fund, will ensure that New York City continues to be the premier location for medical research and technology."

EDC is the City's primary vehicle for economic development services. EDC helps develop businesses and create jobs throughout the five boroughs. In addition to the Emerging Industries Fund, EDC administers the Discovery Fund, which also invests in New York City-based companies, and manages Digital NYC: Wired to the WorldSN, an award-winning economic development initiative that created eight high-tech districts throughout the City.


www.nyc.gov