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Frequently Asked Questions
1. Is there any application form to fill out when a company is requesting funding?
2. How long does a company have to be in business when requesting funding from NYCIC?
3. Where do companies have to be located?
4. What types of funding does NYCIC offer?
5. Does NYCIC provide "seed" capital?
6. Does NYCIC fund real estate related companies?
8. How much capital does NYCIC offer?
9. Does NYCIC sign confidentiality or disclosure forms for potential prospects?
10. Does NYCIC offer advisory services for portfolio companies?
11. Does NYCIC participate in funding with other investors or lenders?
12. Does NYCIC take ownership in the companies it funds?
13. What information does NYCIC require from companies seeking funding?
1. Is there any application form to fill out when a company is requesting funding?
No, but companies interested in obtaining venture capital are required to complete an Intake Form and to submit it along with a business plan. Also, a company being considered for funding under the Partner Loan Program is asked to complete a one-page application form that can be provided by its commercial banker.
2. How long does a company have to be in business when requesting funding from NYCIC?
There are no requirements about length of time in business, although NYCIC will not fund pre-revenue companies. Companies should have some sales history.
3. Where do companies have to be located?
NYCIC can fund companies located anywhere in New York State.
4. What types of funding does NYCIC offer?
NYCIC offers a wide range of funding depending on the needs of the company and the type of investment opportunity. Investments can be in the form of the purchase of preferred or common stock, convertible debt, or a loan with an equity "kicker", such as a warrant to acquire stock of the company or a revenue royalty. In addition, under its Partner Loan Program NYCIC offers to qualified clients of its member banks subordinated debt with no kickers.
5. Does NYCIC provide "seed" capital?
No. While we have funded a number of early stage situations we are not in a position to provide true seed capital.
6. Does NYCIC fund real estate related companies?
No.
8. How much capital does NYCIC offer?
We invest in amounts of between $350,000 and $1,000,000. For the Partner Loan Program the minimum loan size is $100,000.
9. Does NYCIC sign confidentiality or disclosure forms for potential prospects?
Our usual practice is not to enter into these agreements.
10. Does NYCIC offer advisory services for portfolio companies?
Yes.
11. Does NYCIC participate in funding with other investors or lenders?
Yes. NYCIC has several investments in which it has funded alongside other investors. NYCIC's investments also make it easier for portfolio companies to obtain bank debt.
12. Does NYCIC take ownership in the companies it funds?
Yes, in most cases. However, through its Partner Loan Program NYCIC does offer debt without any ownership involvement.
13. What information does NYCIC require from companies seeking funding?
The first step is the submission of a business plan, including full financial projections. In order to facilitate the process completion and submission of an Intake Form is also required.
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