While the rest of the country hit the brakes on startup funding in 2023, Launch NY kept its foot on the gas. The nonprofit venture development organization, known for its startup mentorship programs in Upstate New York, injected $1.975 million into 36 deals last year. Launch NY’s funding strategy includes a non-profit LP fund, as well as a for-profit LP fund that has been active since 2019. In addition to funding, Launch NY is nurturing its own investor community through its digital platform, The Investor Network. The organization’s focus on fostering a startup ecosystem in the region has resulted in over 1,500 mentored companies and a portfolio of diverse and thriving startups. Launch NY’s recent exit with Buffalo-based Patient Pattern further validates their model of early investment and support.
Launch NY has taken a different approach compared to national trends, providing essential resources to startups in Upstate New York. With $1.975 million injected into 36 deals last year, the organization has proven itself as a startup whisperer in the region. But Launch NY’s impact goes beyond funding; their focus is on mentoring and preparing companies for investment. This commitment to fostering a startup ecosystem is crucial in a region often overlooked by investors.
Launch NY’s funding strategy involves two LP funds: the non-profit LaunchNY Seed Fund II, LP, and the for-profit LP Fund I. The latter has raised $5.425 million from 73 investors over four years, supporting 55 companies. To expand its impact, Launch NY aims to raise $15 to $20 million for its new fund, with a $1 million impact investment from the MetLife Foundation.
What sets Launch NY apart is its dedication to nurturing its own investor community. The Investor Network, a digital platform exclusively for local investment opportunities, reached 300 accredited investors last year. This network collaborates with 43North, the world’s largest business plan competition, to showcase winners and finalists. This mutually beneficial relationship further strengthens the bond between investors and startups.
Marnie LaVigne, Ph.D., President and CEO of Launch NY, emphasizes the organization’s mission to create high-impact companies led by diverse entrepreneurs. Launch NY typically provides the first institutional check to these founders and combines it with world-class mentorship, leading their portfolio companies to attract nearly 30 times the capital from other funders. LaVigne expresses gratitude for the support of individual and institutional investors in achieving this goal.
Launch NY recently celebrated a significant exit when Buffalo-based Patient Pattern was acquired by PointClickCare. This success story validates Launch NY’s model of early investment and support, demonstrating its potential for financial returns and job creation throughout Upstate New York.
The portfolio of Launch NY continues to impress, with companies like Dimensional Energy, AireXpert, HELIXintel, and Exostellar securing major funding rounds and driving innovation. Over 50% of Launch NY’s portfolio companies are women and/or minority-led businesses, and over 71% are located in low-income neighborhoods.
Beyond providing funding, Launch NY is actively shaping an entrepreneurial culture in Upstate New York. Since its inception, the organization has invested over $11.985 million through its InvestLocal financing programs, solidifying its reputation as a leader in startup investment and mentorship.
While others may have slowed down, Launch NY has remained committed to pouring resources into startups when they need it most. Their dedication goes beyond funding; they are building a supportive startup community from the ground up. Launch NY’s approach not only makes good business sense, but it also has a lasting impact on the growth and success of startups in Upstate New York.
To learn more about Launch NY, its programs, and the entrepreneurial opportunities it offers, visit www.launchny.org.
WNY companies that received seed capital from Launch NY from Launch NY’s funds in 2023 included:
[Please note that this section requires specific information about the companies that received seed capital from Launch NY. As an AI language model, I don’t have access to the latest news or specific details about Launch NY’s investments in 2023. Therefore, I cannot provide accurate information for this section.]
