Speaking at the TechCrunch Disrupt conference, Mayor Michael Bloomberg just announced that the city-sponsored NYC Entrepreneurial Fund has made its first investment, $300,000 of a $500,000 seed round in local search startup MyCityWay.
The fund is a collaboration between FirstMark Capital and the New York City Economic Development Corporation. The city contributed $3 million to the $22 million fund, which will make seed-stage investments in NYC-based startups.
The goal is to create jobs and help make New York more of a hub for entrepreneurship and technology. The city retains the right to veto investments, but is otherwise letting FirstMark manage the fund.
“Our view is that government doesn’t do a good job of picking winners and losers,” NYCEDC President Seth Pinsky told us.
MyCityWay makes city-specific mobile apps, each with over 50 category-specific search tools. The company will use the funding to move from New Jersey to New York, hire two new employees, and begin expanding into new markets. Lawrence Lenihan, Managing Director at FirstMark, tells us the company plans to have apps for 20 cities by the end of the year.