New York Codes, Rules and Regulations › Title 21 - Miscellaneous › Chapter L - New York State Urban Development Corporation › Part 4252 - Innovateny Fund › Section 4252.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
The following terms shall have the meanings given
				  below:
(a) Beneficiary company shall
				mean a seed stage business that an investment entity selects for a fund
				investment (also referred to as a "portfolio company" after the fund investment
				is made).
(b) Carried interest on
				capital gains shall mean the share of any profits that the owners, partners or
				members of an investment entity receive as compensation.
(c) Corporation shall mean the New York State
				Urban Development Corporation d/b/a Empire State Development, a corporate
				governmental agency of the State of New York, constituting a political
				subdivision and public benefit corporation created by chapter 174 of the Laws
				of 1968, as amended.
(d)
				Disbursement process means the process for disbursing program funds to
				investment entities.
(e) Due
				diligence shall mean an in-depth investigative approach to evaluating the
				beneficiary company and verifying an investment opportunity, which may include
				assessment of the management team, business plan, financial history, financial
				projections, and the beneficiary company's technology and
				products/services.
(f) Emerging
				technology field shall mean one or more of the emerging technologies, as
				defined in section
				3102-e of the Public Authorities Law, or
				any field, area or technology that is achieving or has the potential to achieve
				contemporary technological advances, innovation, transformation or
				development.
(g) Equity shall mean
				common stock, convertible preferred stock, stock warrants or convertible notes
				or bonds that can also convert to common stock, and similar types of
				securities.
(h) Follow-on
				investment shall mean a subsequent investment made by an investor after an
				initial round of investment in a portfolio company.
(i) Hybrid investment shall mean an
				investment that combines equity and debt features, such as preferred stocks,
				convertible bonds, and convertible notes.
(j) Investment Entity shall mean a regional
				and local economic development organization, technology development
				organization, research university, or investment fund that provides or is
				otherwise qualified to make seed-stage investments in companies located in the
				State of New York.
(k) Leveraging
				or leverage shall mean utilizing investment assets alongside other sources of
				capital.
(l) Matching investment
				funds shall mean monies secured in addition to program funds.
(m) Portfolio company shall mean a
				beneficiary company after the fund investment is made.
(n) Seed-stage business shall mean a small
				business, located in New York State and working in one or more emerging
				technology fields, which demonstrates a potential for substantial growth and
				job development, has the potential to generate additional economic activity in
				New York State, and that is pre-revenue, has only begun to earn revenue, or has
				not yet received institutional investments.
(o) Small business shall be have the meaning
				as set forth in section
				131 of
				the Economic Development Law.
(p)
				State shall mean the State of New York.