N.Y. Comp. Codes R. & Regs. tit. 21 § 4254.2

Current through Register Vol. 46, No. 51, December 18, 2024

Section 4254.2 - Definitions

The following terms shall have the meanings given below:

(a)Authorizing legislation shall mean part JJ of chapter 59 of the Laws of 2013, as it may be amended.

(b)Beneficiary company shall mean a seed-stage business, early-stage business or venture-stage business that:

(1) is, or agrees in writing to be, located in State; and

(2) has the potential to generate additional economic activity in the State (a beneficiary company is also referred to as a "portfolio company" after it receives a fund investment).

(c)Corporation shall mean the New York State Urban Development Corporation d/b/a Empire State Development, a corporate governmental agency of the State, constituting a political subdivision and public benefit corporation created by chapter 174 of the Laws of 1968, as amended.

(d)Early-stage business shall mean a business, located in or relocating to the State and working in one or more emerging technology fields, that demonstrates a potential for substantial growth and job development, has the potential to generate additional economic activity in the State, and that is post-revenue, is post-prototype, or is poised to expand or that is a venture-stage businesses.

(e)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 technological advances, innovation, transformation or development.

(f)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.

(g)Follow-on investment shall mean a subsequent investment made by an investor after an initial round of investment in a portfolio company.

(h)Fund shall mean the New York State Innovation Venture Capital Fund.

(i)Hybrid investment shall mean an investment that combines equity and debt or other features, such as preferred stocks, convertible bonds, convertible notes, or interests in particular assets of a beneficiary company.

(j)Investment entity shall mean a regional and local economic development organization, technology development organization, research university, or investment fund (including limited partnerships and limited liability companies) that provides or is otherwise qualified to make investments in seed-stage businesses, early-stage businesses or venture-stage businesses.

(k)Portfolio company shall mean a beneficiary company after it receives the fund investment.

(l)Seed-stage business shall mean a business, located in or relocating to the State and working in one or more emerging technology fields, that demonstrates a potential for substantial growth and job development, has the potential to generate additional economic activity in the State, and that is developing a prototype, is pre-revenue, has only begun to earn revenue, or has not yet received institutional investments.

(m)State shall mean the State of New York.

(n)Venture-stage business shall mean a business, located in or relocating to the State, that engages in commercial manufacturing and sales or whose products or services are in production and commercially available, demonstrates significant revenue growth, may or may not be showing a profit, has received institutional investment and has been in business for a substantial time, generally more than three years.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4254.2

Adopted, New York State Register, Volume XXXVI, Issue 22, effective 6/4/2014