January 11, 2023

New York Governor Launches $30M Match Fund To Support Founders Of Color

Governor Kathy Hochul has announced a $30 million pre-seed and seed matching fund program to help early-stage startup companies.

The funding for the program will come from the State Small Business Credit Initiative to provide extra support to small businesses owned by historically marginalized individuals, including Black and brown entrepreneurs and traditionally disadvantaged individuals.

The initiative, part of New York’s $500 million federal investment, aims to help small businesses recover from the pandemic and rebuild local economies.

As a part of the program, Governor Hochul will offer early-stage startup companies approximately $50,000 to $250,000 in growth assistance which they will match with funds from private sector co-investors.

“For early-stage startup companies, access to capital is critical to ensuring the vitality of those businesses and sustaining them in the long term,” said Governor Hochul in a statement.

“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,” she added.

Additionally, the program will be managed through Empire State Development’s NY Ventures and will mainly focus on expanding access to venture capital funding for Black and brown entrepreneurs.

“I am proud to deliver this federal funding for New York now to build up the state’s small businesses and manufacturing base to accelerate our recovery and drive our economy into the future,” added Senate Majority Leader Charles Schumer.

To qualify, applicants must have raised less than $2 million in funding. Additionally, applicants must be registered to do business in New York State and agree to create economic impact by having their headquarters in the city.

Kumba Kpakima

Kumba Kpakima is a reporter at POCIT. A documentary about the knife crime epidemic in the UK got her a nomination for the UK's #30toWatch Young Journalists of the Year.