(a) Beneficiary company shall mean a seed stage business that an investment entity selects for a fund investment (also referred to as a "portfolio company" after the fund investment is made).

(b) Carried interest on capital gains shall mean the share of any profits that the owners, partners or members of an investment entity receive as compensation.

(c) Corporation shall mean the New York State Urban Development Corporation d/b/a Empire State Development, a corporate governmental agency of the State of New York, constituting a political subdivision and public benefit corporation created by chapter 174 of the Laws of 1968, as amended.

(d) Disbursement process means the process for disbursing program funds to investment entities.

(e) Due diligence shall mean an in-depth investigative approach to evaluating the beneficiary company and verifying an investment opportunity, which may include assessment of the management team, business plan, financial history, financial projections, and the beneficiary company's technology and products/services.

(f) Emerging technology field shall mean one or more of the emerging technologies, as defined in section 3102-e of the Public Authorities Law, or any field, area or technology that is achieving or has the potential to achieve contemporary technological advances, innovation, transformation or development.

(g) Equity shall mean common stock, convertible preferred stock, stock warrants or convertible notes or bonds that can also convert to common stock, and similar types of securities.

(h) Follow-on investment shall mean a subsequent investment made by an investor after an initial round of investment in a portfolio company.

(i) Hybrid investment shall mean an investment that combines equity and debt features, such as preferred stocks, convertible bonds, and convertible notes.

(j) Investment Entity shall mean a regional and local economic development organization, technology development organization, research university, or investment fund that provides or is otherwise qualified to make seed-stage investments in companies located in the State of New York.

(k) Leveraging or leverage shall mean utilizing investment assets alongside other sources of capital.

(l) Matching investment funds shall mean monies secured in addition to program funds.

(m) Portfolio company shall mean a beneficiary company after the fund investment is made.

(n) Seed-stage business shall mean a small business, located in New York State and working in one or more emerging technology fields, which demonstrates a potential for substantial growth and job development, has the potential to generate additional economic activity in New York State, and that is pre-revenue, has only begun to earn revenue, or has not yet received institutional investments.

(o) Small business shall be have the meaning as set forth in section 131 of the Economic Development Law.

(p) State shall mean the State of New York.