NYC Catalyst Fund

The New York City Catalyst Fund is one of NYCEDC’s impact investing programs, dedicated to making investments that generate positive, measurable social and environmental impact as well as a financial return.

Why We Created the Catalyst Fund

The Catalyst Fund, a first-of-its-kind program for NYCEDC, was created to kickstart growth in New York City by partnering with fund managers who demonstrate a commitment to the city and who align with NYCEDC’s impact priorities.

The Catalyst Fund seeks a triple bottom line in its investments by:

• Generating high-quality impact
• Delivering market-rate returns
• Driving economic development in New York City

The program is inextricably tied to our work in growing the city’s most important industries, which, in turn, will create jobs, pipelines, and equitable opportunities for all New Yorkers.

Impact Focus Areas

Through the Catalyst Fund, NYCEDC is partnering with funds that invest across three thematic impact areas:

• Diverse Entrepreneurship: Funds that invest in companies or projects led by diverse entrepreneurs.
• Community Development: Funds that focus on promoting economic mobility, including funds that have an impact on low-to-moderate-income neighborhoods and other underserved populations.
• Emerging Sectors: Funds that focus on priority sectors integral to New York City’s economic growth and the creation of high-quality, inclusive jobs. Sectors include life sciences, technology, and the green economy.

We are also focusing on funds that are committed to the New York City ecosystem, including funds that have a strong track record of investing in New York City-based companies that have a rich presence in the city and that are integrated with NYCEDC’s other programs and initiatives, such as the Venture Access NYC program.

Portfolio Overview

To date, the Catalyst Fund portfolio includes eleven firms with investments across the impact areas of diverse entrepreneurship, community development, and emerging sectors.

Once fully deployed, we expect that our $40 million of invested capital will catalyze over $280 million of investment, a 7x multiple, into 140 companies based in New York City.

• Antler: Antler is a leader in “Day Zero” investing, backing founders at the start of their company-building journey. Antler invests in select technology startups that have completed its in-house residency program. By investing at the earliest stage, Antler also aims to make venture capital more accessible to a broader, more diverse range of founders.
• Avante Capital Partners: Avante is a majority women-owned private credit firm that invests in lower-middle-market businesses, often overlooked by traditional financing sources. Avante primarily lends to small businesses in core sectors such as healthcare, business services, and manufacturing. Avante has also founded several professional networks and internship programs aimed at increasing diversity within the private equity and private credit industries.
• Candide Group (Afterglow Climate Justice Fund): Launched by the Candide Group, the Afterglow Climate Justice Fund supports effective and equitable solutions to the climate crisis by lending to organizations serving communities facing persistent poverty, high energy costs, and disproportionate climate burdens. Investments support green jobs and equitable clean energy solutions. Investments also aim to reduce financing barriers for emerging solar developers who may face difficulty securing debt.
• Harlem Capital: Founded in 2015, Harlem Capital is a venture capital firm based in New York City that seeks to change the face of entrepreneurship by investing in diverse founders. The firm has invested in over 60 companies and 75 diverse founders across its first two funds.
• HCAP Partners: HCAP Partners is a diverse-owned firm that specializes in lending to underserved, lower-middle market companies. The firm has been an Impact Assets 50 fund since 2014. Through its Gainful Jobs Approach™, HCAP works to facilitate a positive impact for the underserved businesses in its portfolio, as well as their employees and their communities.
• Maycomb Capital: Founded in 2017, Maycomb Capital is a women-owned investment firm headquartered in Brooklyn. Maycomb provides flexible, mission-aligned debt to increase economic opportunities for low-income communities, across the early childhood, workforce development, and health equity impact pillars.
• MetaProp: MetaProp is a New York City-based venture capital firm focused on the real estate technology industry. Founded in 2015, MetaProp’s investment team has invested in 175+ technology companies across the real estate value chain. The firm’s investment activities are complemented by pioneering community leadership, including the PropTech Place innovation hub and MetaProp Accelerator at Columbia University programs.
• nvp capital: Founded in 2016, nvp capital is a diverse-owned, early-stage venture capital firm whose office and full-time staff are based in New York City. nvp capital invests exclusively in early-stage technology startups, with a demonstrated track record of supporting diverse entrepreneurs.
• Open Opportunity Fund: Open Opportunity Fund is a venture capital firm focused on investing in early-stage software companies founded by diverse founders. Open Opportunity Fund’s portfolio spans enterprise IT, artificial intelligence, fintech, and digital health sectors. Spun out of SoftBank, the firm has invested in 75 Black- and Latino-led tech companies including Atomic, Esusu, QuickNode, Squire, and Zoe.
• Rethink Education: Rethink Education makes early-stage investments in education technology companies. Launched in 2012, Rethink Education supports companies that use disruptive technologies to advance education in major subsectors including workforce development, corporate training, K-12, post-secondary, and continuing education. Rethink has a strong track record of investing in New York City-based companies, many of which have partnerships and/or contracts with the NYC Department of Education and CUNY systems. Rethink Education is part of a larger purpose-driven platform, Rethink Capital Partners.
• Turning Rock Partners: Turning Rock is a majority- women-owned, New York City-based private credit firm that lends to underserved, small businesses. The firm has a track record of investing in small businesses, which has led to the creation or retention of over 1,600 jobs.