• Business Insider, Tuesday, May 25, 2010 1:35 PM

Mayor Michael Bloomberg on Tuesday 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, reports the Business Insider. 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," writes Business Insider. "The city retains the right to veto investments, but is otherwise letting FirstMark manage the fund." MyCityWay makes city-specific mobile apps, each with over 50 category-specific search tools. The company is expected to use the funding to move from New Jersey to New York, hire two new employees, and begin expanding into new markets. The company plans to have apps for 20 cities by the end of the year, Lawrence Lenihan, Managing Director at FirstMark, tells Business Insider.

Read the whole story at Business Insider »