NYC mayor announces $22M fund for tech startups

May 25, 2010 By BETH FOUHY , Associated Press Writer

(AP) -- New York City Mayor Michael Bloomberg has a message for computer geeks everywhere: Forget sunny Silicon Valley and launch your company here.

Bloomberg made his pitch Tuesday at a gathering of technology entrepreneurs, announcing the creation of a city-sponsored $22 million venture fund that will invest in promising tech companies headquartered in New York.

The city's Economic Development Council will invest $3 million in the fund while FirstMark Capital, a New York-based will provide up to $19 million more.

The backdrop for Bloomberg's announcement was TechCrunch Disrupt, a media and technology conference that draws tech entrepreneurs from across the country.

Bloomberg, 68, is a multibillionaire who made his fortune starting Bloomberg LP, a financial data and news company. He reminded the crowd that he was a tech pioneer long before the Internet existed and offered up some of his other high-tech credentials as well.

"Before this morning's conference I updated my Facebook page, sent a , browsed my Digg feed and checked in at Foursquare," he said. "I even posted a personal ad on Craigslist: Cleveland basketball star to play basketball in the Big Apple."

It was a joking reference to the city's efforts to woo LeBron James of the Cleveland Cavaliers.

Asked why a tech startup should choose New York over the warmer West Coast climes, Bloomberg said that venture capital funding of companies in New York was up 19 percent last year even as it fell elsewhere amid the poor economy. He said the creativity and talent in New York was unmatched anywhere.

"It's a great place where intellectual capital is important. If you want to compete in the big pond, if you want a breadth of cultural opportunities ... this is the place to come," Bloomberg said.

He said New York should be particularly attractive to tech companies because it is "the most immigrant-friendly city in America." He said that both the tech economy and the larger U.S. economy thrived with more immigrants, not less.

Explore further: Out-of-patience investors sell off Amazon

3 /5 (2 votes)
add to favorites email to friend print save as pdf

Related Stories

Khosla Ventures raises 1 bln dlrs for green tech

Sep 02, 2009

Two new US venture capital funds have raised more that one billion dollars to help propel a green technology revolution, the company founded by influential investor Vinod Khosla said.

Study Shows Atlanta Kills Off Start-Up Companies

Sep 28, 2009

(PhysOrg.com) -- Atlanta is poised to become the nation’s poster child for how to kill off a burgeoning industry. A new study by professors at Georgia Tech reveals that the city’s reputation as a high ...

Israeli, U.S. venture firms open joint lab

Mar 02, 2006

An Israeli venture-capital firm and a U.S. venture-capital company announced Wednesday they would join forces to invest millions in 10 new tech startups.

Recommended for you

Out-of-patience investors sell off Amazon

9 hours ago

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

15 hours ago

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

17 hours ago

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

18 hours ago

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

DaveGee
not rated yet May 25, 2010
Doesn't anyone else feel this is a story-less story?

1. 19m given by a venture capital firm (3m from the city)
2. 22m .... REALLY ?!?!? is this really worth writing a story about?
3. Just one iPhone venture capital firm announced 200m fund without even blinking
4. 22m .... REALLY?!?!

Doesn't Bloomberg make more than that on a weeks worth of of interest on his 'fun money' cash savings account?