The NY Times is reporting that Mayor Bloomberg has launched a new seed stage fund for pre-revenue and pre-product technology startups in NYC. Called NYC Seed, the fund has a few interesting details:
- First-time founders are encouraged
- NYC Seed will make investments of up to $200,000
- NYC Seed will provide guidance from VCs, entrepreneurs, and technologists - presumably from the NYC area
- Companies must be located in NYC
So, will this work? If by ‘work’ you mean recreate Silicon Valley, then probably not. Silicon Valley has a mindset that is extremely accepting, both financially and socially, of the failure inherent in developing new technology companies. However, if the measure of NYC Seed’s success is adding fuel to the burgeoning startup community forming in New York as in other cities, then yes I think this is a good start. They are incorporating several key ingredients of an evolving technology venture model: young founders, small investment amounts, and an involved mentor community.
Best of luck to these new companies and their founders.
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