NYC Funds Tech Incubator in Brooklyn

Grant to help foster more startups in Dumbo

Dumbo, already a booming digital scene, is getting a boost from local government.

New York's Economic Development Corporation has committed $250,000 to fund an incubator for technology startups in the Brooklyn neighborhood, Mayor Michael Bloomberg announced Thursday.

New York University’s Polytechnic Institute will run the incubator, which will provide discounted office space for entrepreneurs, as well as services like educational workshops and business counseling. Two Trees Management company, a local developer, is providing the real estate to NYU-Poly at a heavily discounted rate—$3.50 per square foot per year—on a three-year lease, with 6 months free. Normally, the asking rate at 20 Jay Street, where the incubator will be located, ranges from $21-26 dollars a foot.

NYU-Poly will use the $250,000 to arrange programs and fit out the physical space, where startups will be able to rent desks at a yet-to-be determined rate. NYU-Poly also runs an incubator on Varick Street in Manhattan, one of eight other incubators funded by the city for a variety of industries.

Last week, Dumbo—home to a host of digital advertising agencies and other web-centric businesses—became the first neighborhood in the five boroughs to offer free WiFi, beating Manhattan to the punch.