Applied Ventures, the corporate venturing arm of semiconductor technology producer Applied Materials, launched a co-investment initiative with Empire State Development, the economic development vehicle formed by the state of New York.
The partnership will involve funding startups based in the upstate New York area, and will target sectors such as semiconductors and artificial intelligence as well as autonomous vehicles, life sciences, clean energy and advanced optics technology.
The co-investment agreement is sized at $30m, Applied Ventures general manager Rajesh Swaminathan told Global Corporate Venturing. The unit typically invests up to $50m a year, providing $3m to $5m for a first investment.
The scheme was launched in connection with the creation of a hub known as Materials Engineering Technology Accelerator (Meta) on the campus of SUNY Polytechnic Institute in the city of Albany.
Applied will invest a total of $600m on the SUNY campus while Empire State Development will provide $250m of grant funding over a five-year period to enable SUNY Research Foundation to buy and install equipment in a research and development facility.
The agreement will also enable researchers in the SUNY system to apply to jointly research and develop technology with Applied, which will match investments of up to $25m by SUNY.
Applied Ventures president Om Nalamasu said: “Upstate New York is home to a vibrant technology and academic ecosystem, with entrepreneurs who are generating new growth opportunities across many industries.
“We look forward to working with Empire State Development to identify and nurture startups in this region through funding and access to Applied’s leading capabilities in materials engineering.”
Applied Ventures’ portfolio already includes microdisplay developer Lumiode and metal additive technology producer Norsk Titanium, both of which are headquartered in New York state.
This article was amended to reflect additional details concerning investment amounts.
