Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: Monday, September 27, 1999

Release #378-99

Contact: Sunny Mindel/Curt Ritter 212-788-2958
Bernadette O'Leary (EDC) 212-312-3523


CITY ISSUES REQUEST FOR PROPOSALS FOR LAW FIRM AND VENTURE CAPITAL INVESTMENT ADVISOR FOR CITY'S EMERGING INDUSTRIES FUND

Mayor Rudolph W. Giuliani today announced that the New York City Economic Development Corporation (EDC) will issue two Requests For Proposals (RFPs) to assist with implementation of the recently announced Emerging Industries Fund. One RFP will call for a venture capital investment advisor to assist EDC with administering the Fund. The second RFP will be issued to identify a law firm that will assist with structuring the Fund's investments.

The $25 million Emerging Industries Fund 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 such industries as the Internet, biotechnology, software and telecommunications.

"Since the City announced the Emerging Industries Fund, we have received a great deal of interest from our technology entrepreneurs," said Mayor Giuliani. "The City is eager to move ahead with establishing management for the Fund so that we may begin to assist in these promising start-ups, as well as invest in the future of the City's technology industries."

EDC and the selected advisor will identify candidates for the Fund. They will be approved by a seven-member board appointed by the City Council and Mayor Giuliani. The advisor will also conduct due diligence on proposed investments and monitor each of the Fund's investments. The selected law firm will provide legal assistance to EDC as it manages the Fund and structures individual investments.

"EDC is looking for a venture capital investment advisor and a law firm that have considerable experience with venture capital investment and early-stage technology companies," said EDC President Michael Carey. "We anticipate a high level of interest, given the strength of our growing investment community."

Beginning in December 1999, the program will offer early-stage investments ranging from $100,000 to $1,500,000, with an emphasis on investments of less than $750,000. Investments may be structured as debt, equity, or a combination of the two. All companies eligible for assistance from the Fund must be located in, or moving to, New York City.

The RFPs will be issued September 27, 1999, and proposals must be delivered to EDC by October 22 at 3 p.m. All requests for the RFPs should be directed to Cheryl Elmore at 212-312-3969, or e-mailed to techfund@nycedc.com. RFP responses must be submitted to EDC, 110 William Street, 6th Floor, New York, NY 10038.

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.

www.ci.nyc.ny.us


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