Venture Capital
Venture capital funds invest in promising companies that have potential
for future profit, but often are not profitable yet. Venture capital
funds provide emerging enterprises with capital, in return for debt
or partial ownership. A high rate of return over a relatively short
time frame is expected.
Most venture capital funds assume more risk than banks. Therefore,
companies unable to receive more traditional bank loans and other financial
help may find venture capital available. Remember, however, that unlike
lending institutions, venture capital funds own a part of your business
in exchange for the money they invest.
Different funds invest at different stages of business development
and also invest in specific industries such as energy, information technology,
or biomedical.
Empire State Development, New York's economic development agency, administers
Small
Business Technology Investment Fund (SBTIF) which offer a unique
source of early stage and growth capital for New York's technology based
companies.
The Angel Capital
Electronic Network, (Ace-Net) is sponsored by the U.S. Small Business
Administration's Office of Advocacy. Ace-Net is a national securities
offering listing service that allows venture capitalists, and institutional
and individual accredited investors to find small, growing companies
through a secure Internet database.
Small
Business Investment Companies (SBIC) are privately-owned venture
capital firms licensed by the U.S. Small Business Administration which
provide equity capital, long-term loans, debt equity investments and
management assistance to qualified small businesses.
The New
York Business Development Corporation's (NYBDC) Capital Corp is
a small business investment company. Capital Corp has debt or equity
securities available for companies that have a proprietary product with
initial marketing and are looking to expand working capital. These companies
are generally higher technology and maintain high leverage, have short
trade records and minimum collateral with good management.
State legislation passed in 1997 authorized the creation of Certified
Capital Companies (CAPCOs) funded by insurance companies, to invest
in promising New York State businesses.
The current list of CAPCO's:
Advantage Capital Partners
5 Warren Street
Glens Falls, NY 12801-4558
518-743-0060
Enhanced Capital Partners
350 Park Avenue, 24th Floor
New York, NY 10022
212-207-3385
New York Small Business Venture Fund, LLC
c/o New York City Investment Fund, LLC
One Battery Park Plaza, 5th Floor
New York, NY 10004
212-493-7587
Stonehenge Capital Fund New York, LLC
152 W. 57th Street, 20th Floor
New York, NY 10019
212-9265-9380
Whitecap New York Growth Fund, LLC
747 3rd Avenue, 22nd Floor
New York, NY 10017
212-747-7474
Wilshire Advisers, LLC
100 Quentin Roosevelt Blvd., Ste. 408
Garden City, NY 11530
516-390-2252
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