Venture Capital Investment Consortium

Transcription

1 Venture Capital Investment Consortium Request for Proposals Question & Answer Information Session: October 4, 2018 RFP Submission Date: November 9, 2018

2 Our VISION: New York City is the global model for inclusive innovation and economic growth, fueled by the diversity of our people and our businesses Our MISSION: Create shared prosperity across all five boroughs of New York City by strengthening neighborhoods and growing good jobs 2

3 Two Pillars of NYC s Economic Development Dynamic, Resilient Neighborhoods 1 2 Advancing 21 st Century Jobs Equipping all New Yorkers & every neighborhood with the resources and infrastructure necessary to participate in the economy Ensuring businesses have the space, resources, and talent to provide opportunity for New Yorkers of diverse backgrounds 3

4 NYCEDC Organizational Background Planning & Infrastructure Departments: Capital, Planning, Development & Transportation Major Initiatives: Brooklyn Army Terminal, Cruise Terminals, Public Markets Real Estate Development Departments: Asset Management, Real Estate Transaction Services Major Initiatives: 168th Street Garage, Downtown Far Rockaway, Downtown Staten Island Innovation and Industry Departments: Strategic Investments Group, Center for Urban Innovation, Economic Research and Analysis Major Initiatives: Applied Sciences, Cybersecurity, Fashion, Media, Tax Credits & Bond Financing 4

5 Request For Proposals Through the creation of the Venture Capital Investment Consortium, NYCEDC seeks venture capital partners ( VC Partners ) to help address the challenges with raising capital faced by tech entrepreneurs from underrepresented groups, notably women and minorities. 5

6 WE NYC: Empowering Women to grow their businesses and connect to resources WE Fund Crowd Supporting entrepreneurs through crowdfunding, pledging 10% or up to $1,000 of fundraising goals WE Fund Growth Enhancing capacity for community lenders to originate small business loans through a loan loss reserve fund WE Fund Venture Co-invest in tech companies seeking early stage and Series stage capital 6

7 Session Overview Background Context Scope of Services RFP Process Q&A 7

8 Background Context

9 Strong Venture Capital Ecosystem in NYC NYC is now home to a burgeoning tech startup environment $8 billion invested in more than 1,200 transactions since 2009 NYC was voted the best city for women entrepreneurs by Dell s annual rankings in 2017 Women s share of VC dollars is 23% thus far in 2018 in NY (vs. 5.5% in 2006) NYC is the center for diverse sectors including fashion, media, and retail as well as a vast number of financial institutions NYC has a strong base of academic research institutions 9

10 The Venture Funding Gap In spite of the substantial increase in venture capital investing ($84.2 billion in 2017), women and underrepresented minorities reflect a fraction of the recipients receiving funding By the numbers: 64% 88% 92% 96% 98% 100% 36% 12% 8% 4% 2% 0.2% 36% of all small business owners are women 12% of venture capital funds go to women nationwide 8% of senior staff at venture firms are comprised of women 4% of venture workforce is comprised of Hispanic /Latino groups 2% of venture funds go to all women teams 0.2% of venture funds go to African American women 10

11 Structural Gaps in VC Ecosystem VC Firm Representation by Gender 8% 20% 11% 23% 40% 51% 92% 80% 89% 77% 60% 49% Senior Investment Team Junior Investment Team Non Investment Team Y-Combinator Large Tech Avg. (Leaders) US in 2020 Men Women 11

12 Challenges for Under-Represented Groups The disparity at the VC level has two major effects on diverse entrepreneurs seeking funding: 1. Limits their network and resources 2. Drives greater scrutiny of value proposition IPO Series Rounds (A+) Co-Founder Family and Friends Typically do not have the means to assist Seed Round Lack exposure to networks and resources that provide support Experience more stringent requirements to show traction Idea 12

13 Consortium Objectives Select up to five VC Partners best suited to enhance access to capital for diverse tech entrepreneurs Establish a strategic resource for diverse tech entrepreneurs that facilitates investments in companies Solidify New York City s position as the top destination for diverse tech entrepreneurs Create financial and social double bottom line return for VC Partners 13

14 Scope of Services

15 Venture Capital Investment Consortium: Scope of Services VC Partners will serve as the primary source for identifying early stage investment opportunities in New York City based companies. Minimum services will include: Commit capital to the Consortium for co-investments alongside EDC, as set in the Draft Term Sheet in the RFP Search for early stage investments across sectors Conduct due diligence on investment opportunities to present to NYCEDC, who will then conduct its own evaluation Prepare reports on investment and divestment strategies and recommendations Monitor and manage investments made through the Program, advise NYCEDC, and report on portfolio company performance 15

16 RFP Process

17 Venture Capital Investment Consortium: Qualifications, Experience & Methodology Respondents will be required to provide descriptions pertaining to the items below: 1. Firm Background: ownership, track record, management structure, audited financial statements 2. Investment Thesis: investment philosophy, unique value proposition 3. Program Vision: addressing the market gap, sector focus, funding stage 4. Co-Investment Terms (See Draft Term Sheet): upfront funding commitment, conditions, terms 17

18 Selection Criteria NYCEDC will evaluate RFP respondents based on written proposals and interviews through the following framework: Selection Criteria Firm Qualifications, Experience & Methodology Respondent s Investment Track Record and Qualifications Feasibility of Respondent s Proposal Relationship to City Goals Respondent s Proposed Fee Structure 18

19 Submission Procedures Respondents must submit responses according to the following guidelines: Submitted to and received by NYCEDC no later than 4:00pm on Friday, November 9, 2018 Limit response to questions in the Submission Requirements section to no more than twenty (20) pages Five (5) hard copies of the proposal in paper form and one (1) copy of the proposal in electronic format in a searchable PDF format Provide financials in both Excel and PDF format 1 copy of the Doing Business Data Form (Appendix IV) Packages should be marked Proposal for Venture Capital Investment Consortium Delivery Address: NYCEDC 110 William Street, 4th Floor Mail Room New York, New York

20 RFP Timeline Important Dates: October 12, 2018 / 5pm: Deadline to Submit RFP Questions to VCC@edc.nyc October 26, 2018/ 5pm: Answers to All Received Questions (including those today) to be Posted on November 9, 2018 / 4pm: Deadline to Submit RFP Proposals Mid-November 2018: Begin Selection Process and Review Proposals Early December 2018: Conduct Interviews January 2019: Select and Announce Consortium Partners Q1 2019: Anticipated Launch of Consortium 20

21 Questions? 21