New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4252 - Innovateny Fund
Section 4252.6 - Eligible investments in beneficiary companies

(a) In order to be eligible for an initial investment, a beneficiary company must be a seed-stage business. Prior to the investment of program funds in a beneficiary company, the beneficiary company must agree, pursuant to a written agreement satisfactory to the corporation, that the beneficiary company will be located and remain located within the State for a period satisfactory to the corporation, and that in the event that the beneficiary company breaches such obligation, the corporation shall have all remedies at law and such other remedies as the corporation may set forth in the agreement with the beneficiary company, which may include recovery, or recapture, in full or in part, of the program funds investment.

(b) Investment entities shall not invest program funds in a beneficiary company in an amount greater than $500,000 or $750,000 in the case of a biotechnology-related beneficiary company, at any one time, unless the beneficiary company and the investment entity can demonstrate to the satisfaction of the corporation that exceeding the applicable investment limit significantly increases the potential of the investment to result in substantially greater growth, job development, and additional economic activity in New York State and the corporation consents to such greater investment in writing. Investments in beneficiary companies may take the form of equity or hybrid investments. Program funds may be used for follow-on investments in portfolio companies, subject to the investment amount limits and exceptions set forth above. In the case of two or more innovate NY investment entities investing in the same beneficiary company in the same investment round, applicable investment limits may be increased pending review and approval by the corporation.