Welcome back to The Sunstone Way.
I want to continue our discussion about the Sunstone Why this week by talking a bit about why we think it’s important to partner with government agencies.
I’ve said here before that our “big secret” (for all of you who have read the famous entrepreneurial book Zero to One), is that government controls the economy. Thankfully, in recent years our leaders have come to the same realization we did – helping small businesses get started is a big key to economic development. And economic development enriches communities through investment – a major part of the Sunstone Why that we have also been discussing over the past several weeks.
We support our founders and startup companies strategically primarily through our partner accelerators, the Long Beach Accelerator here in Southern California and Lair East Labs in New York City. We’re fortunate that in both California and New York states there are now government-sponsored matching funds available for venture capital investment.
From the Top
This money – the State Small Business Credit Initiative in California (SSBCI) and the Empire State Development Pre-Seed/Seed Matching Fund Program in New York – comes from the federal government. The American Rescue Plan Act, passed in 2021 during the COVID pandemic, provided $10 billion with a ‘B’ to: “support small businesses and empower them to access the capital needed to invest in job-creating opportunities as the country emerges from the pandemic,” according to the U.S. Department of the Treasury.
That money was made available to states, territories, and Tribal governments for local incentive programs. Here in California, that meant $1.1 billion divided among several programs, from loan guarantees to a new $200 million venture capital fund program. (Our affiliate company, American Lending Center, is handling SSBCI loans beginning this year.)
In New York, the state government is offering $30 million in funding for early-stage startups. Through NY Ventures, the program offers “early-stage businesses equity investments from $50,000 up to $250,000 with matching from the private sector,” according to the state’s website. That match has to be dollar for dollar from the private sector—a public private partnership to catalyze investment, job growth, and economic development for these communities.
Significantly, both states emphasize that priority will be given to underserved areas and disadvantaged groups, including minority- and women-owned startups. That fits exactly with the Sunstone Way.
How Sunstone Helps
We are honored to be able to help founders take advantage of these opportunities on both coasts in a number of ways.
Thanks to our partnerships with the entrepreneurs through the accelerators, we are able to help them make the necessary connections to apply for the money. And we help provide access to the necessary matching capital as well.
Finally, Sunstone is well known as a strong and reliable partner, connecting the public and private sectors by working with both sides for the good of the community. That’s the Sunstone Why, and the Sunstone Way.
As always, be a Sunstone!
CEO & Managing Partner
Sunstone Management Inc.
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More About Sunstone Management
Sunstone Management is a diversified private capital management firm with headquarters in Southern California that provides a range of early-stage venture capital, real estate, and fixed income funds to qualified and accredited investors. The firm delivers new and exciting options for economic growth through innovative public-private partnerships, making use of its unique experience across government, education, and private sectors. Identified by Financial Times as one of America’s Fastest Growing Companies three years in a row. Connect with Sunstone Management at: