Launch NY 2024 roundup: Another year of new deals yields nearly $15 million in startup investments since 2016, portfolio company progress and exciting milestones

Major grant, expansion of investment vehicles and geography will supercharge growth in Upstate NY  startup ecosystem

Nonprofit venture development org. invested in its 100th startup company in 2024

Jan. 09, 2025, Buffalo, NY – Launch NY celebrated another year of momentum in 2024 as it supported over 400 companies, strengthened its ability to make investments, wrote checks to talented Upstate New York entrepreneurs and watched portfolio companies hit exciting milestones.

The nonprofit venture development organization was thrilled to invest in its 100th company in 2024, the culmination of six years of being the most active seed fund capitalizing startups in New York State since 2018. That status was achieved just two years after the fund inception in 2016.

The landmark deal was a $100,000 investment into Nudge Money, a Rochester-based startup that partners with credit unions to drive financial wellness among their membership. It was one of 39 investments Launch NY made in 2024, totaling $2.765 million, and supporting ambitious company founders in Buffalo, Rochester, Syracuse, Binghamton, Ithaca and Albany, a new region added to Launch NY’s investment territory in 2024.

Launch NY has now invested $14.75 million into startups based in those regions since 2016.

“As the global venture landscape has struggled over the past two years, Launch NY has leaned into its belief that Upstate New York has world-class talent that can create market-leading companies and incredible opportunities for the people who live in those communities,” Launch NY president and CEO Marnie LaVigne, Ph.D., said. “And the funder community has joined in our effort in terms of both of our investment programs and grants to support our robust infrastructure for mentorship and portfolio management. This belief is playing itself out in real-time, and the results are very encouraging. We’re finding talented founders, giving them an early boost in mentorship and funding, and then supporting them as they attract follow-on capital and acquirers while competing in the global marketplace and building their businesses right here in our backyard.”

Founded in 2012, Launch NY is the only venture development organization playing a key role in the drive toward a robust and diverse innovation economy across Upstate New York. The nonprofit’s scope has increased over the years as Launch NY has bolstered its InvestLocal funding vehicles, created new mentorship and support programs and served as a leading voice in broader strategic initiatives related to innovation and technology.

Here are some highlights from 2024:

Wilson Foundation partnership continues with $3M grant

The Ralph C. Wilson Jr. Foundation announced its fourth grant to Launch NY in 2024, strengthening a long-term partnership around shared goals of equitable economic development and boosting entrepreneurship in Upstate New York.

Wilson Foundation first partnered with Launch NY in 2016 with a $3 million grant that supported the creation of a nonprofit seed fund, which was Launch NY’s first InvestLocal financing vehicle. That seed fund has now invested more than $8 million in Upstate New York startups and catalyzed the creation of other Launch NY investment vehicles, fueled by a total of 4 grants from the Ralph C. Wilson, Jr. Foundation reaching $13 million with the new 2024 award.

The new grant will once again capitalize the nonprofit seed fund and provide support for Launch NY’s mentorship services.

One of the key goals of the new grant is to drive Launch NY’s commitment to programming and funding for underrepresented founders. In addition to its Founders Go Big program for this audience, Launch NY has built an investment portfolio with more than 50% of companies led by women or founders of color, far exceeding national diversity statistics for venture capital funds. More than 70% of Launch NY’s portfolio companies are located in low-income neighborhoods that are most in need of economic revitalization.

“Launch NY is one of the great multiplier effects that is contributing to the momentum and upswing in Western New York,” said Paul Riser, the Wilson Foundation’s senior program officer for entrepreneurship and economic development, in an announcement of the grant. “Launch NY has made great strategic decisions over the years that have made it a leader in equitable economic development. It is a representation of what successes are possible with targeted, meaningful philanthropic support.”

Launch NY received several other meaningful funding awards in 2024. They included:

• A $250,000 economic development grant from National Grid through its CleanTech Incubation program. The program supports entrepreneurial ventures, assisting them in creating new cleantech industry jobs and capitalizing on emerging opportunities. See the announcement here
• A $200,000 subaward from the Upstate NY Energy Storage Engine led by Binghamton University to support battery technology startup innovation and capital access.
• $50,000 in sponsorship from the New York State Energy Research and Development Authority for clean energy and climate tech ecosystem.

InvestLocal programs continue to grow

The past year saw exciting progress in Launch NY’s ability to continue making investments into the future. In addition to the nonprofit seed fund described above, Launch NY’s InvestLocal programs also include…

For-profit Seed Fund II: Launch NY debuted its second for-profit fund in 2023 but expanded the scope of the fund in 2024. Buffalo Business First reported in April that Launch NY closed on $10.95 million into the new fund, making it one of the largest startup investment vehicles in Upstate New York. Launch NY made thirteen investments out of its Seed Fund II in 2024 totaling $1.24 million.

Launch NY also continued to write checks out of its first for-profit fund in 2024, though it is now fully invested.

Investor Network: Launch NY made a concerted effort over the past two years to grow its Investor Network, a syndicate of accredited investors who are passionate about supporting innovation in Upstate New York. That network surpassed 300 participants in late 2023 and now has more than 345 members.

Three companies raised funds through the Investor Network in 2024, each of them in Buffalo. They included Verivend ($125,000), PostProcess Technologies ($50,000) and Edenesque ($50,000).

With the Investor Network, Launch NY sources the deals, creates the investment framework and then presents them to the investors. This removes the administrative burden associated with angel investors and allows Investor Network members to access due diligence. They can invest as little as $10,000 in each deal.

Investment highlights

Launch NY’s $2.765 million in collective investments in 2024 represents its most active year ever, reflecting the growth in the InvestLocal financing programs and Launch NY’s ability to close larger deals. Launch NY started off in 2016 by making $50,000 investments from its Nonprofit seed fund, which has grown significantly with the addition of its LP Funds. Including LP Fund II, Launch NY’s first-time company funding had its largest investment ever in 2024 with $250,000 funding into energyGuard, to go along with an average of nearly $175,000 in 13 initial company investments last year.

A sampling of exciting 2024 deals includes:

• Launch NY’s $225,000 investment into Edenesque paved the way for the company to move from Hudson Valley to Buffalo. The plant-based dairy startup is led by founder and CEO Leslie Woodward, a Black woman who developed the company after spending more than 20 years as a chef in New York City.

Edenesque’s chef-crafted, plant-based dairy products provide uniquely superior nutrition to enable its customers to thrive and Be the Love™ — nourishing themselves, their communities, the environment, and their local economy. The company subsequently became one of 10 startups selected to participate in Whole Foods Market’s 2024 local and emerging accelerator program.

The Edenesque investment included $75,000 from Launch NY’s nonprofit seed fund and $150,000 from its new for-profit LP Fund II, including $50,000 from the NY Ventures State Small Business Credit Initiative (SSBCI). Another $50,000 came in through Launch NY’s Investor Network.

• Rochester-based TelosAir raised $175,000 from Launch NY in 2024, including $75,000 from its nonprofit seed fund and $100,000 from LaunchNY Seed Fund II.

TelosAir has created a new generation of sensors for air quality management, and has customers in healthcare, retail, manufacturing and higher education. The company combines its sensor hardware with leading-edge data reporting and analytics for enhanced health and safety, operational efficiency and risk management in commercial buildings.

TelosAir is led by CEO Prashanth Shetty, who said TelosAir’s sensor-plus-data approach could have broad applicability now that the technology has been validated.

• Binghamton-based AgriTrak raised $175,000 from Launch NY in 2024 from its nonprofit and for-profit seed funds. The company has developed farm labor software that provides real-time tracking, compliance assurance and actionable insight at a time of growing regulatory oversight over farm labor.

AgriTrak was founded by fifth-generation apple grower Jamie Sonneville and participated in the 2024 Techstars Anywhere accelerator program, which helped them establish new partnerships in the agriculture industry.

• Ithaca-based Caretech Human raised $175,000 from Launch NY’s nonprofit and for-profit seed funds in 2024. Based at Cornell University’s Center for Life Science Ventures business incubator, Caretech developed a small device that users can install above the waterline in their toilet bowl, providing continuous health monitoring for urology diseases.

Launch NY’s $175,000 investment into the company will allow it to enter commercial production in preparation to enter the market. Caretech Human is led by CEO Dan Matsui, who said his company is bringing a new standard of care in the urology field.

Portfolio highlights

Launch NY saw its first substantive exit in 2023 with the sale of portfolio company Patient Pattern and realized another portfolio company acquisition in 2024 when portfolio company Dimien was sold to a larger business in Massachusetts.

Many of the companies in Launch NY’s portfolio continue to make exciting progress raising larger rounds of financing and gaining business traction. Some examples include:

Ecolectro, an Ithaca-based portfolio company of Launch NY, raised a $10.5 million Series A funding round led by Toyota Ventures that will accelerate the development of their Anion Exchange Membrane electrolyzers. The product aims to create an affordable and scalable path to reducing carbon emissions through true green hydrogen.

Cyrisma, based in Rochester, raised a $7 million Series A funding round led by Blueprint Equity, that will support the growth of its all-in-one cyber risk management platform.

Ognomy, a Buffalo-based sleep apnea startup, closed a series seed preferred round amidst a national expansion that saw it pass 11,000 patients served. Launch NY contributed $75,000 to the round.

Full list of companies that received seed capital from Launch NY in 2024

Capital Region

P1ston, supply chain management software for manufacturers and distributors

Central New York

Radiant Abilities, a self-development and empowerment platform for dating and relationships, with a specialization on individuals with disabilities

Finger Lakes

CYRISMA, an all-in-one cyber risk management platform

Nudge, a fintech startup that partners with credit unions to drive financial wellness

Sign-Speak, an AI company for real-time translation and advanced sign language recognition

TelosAir, which creates data-driven solutions to intelligently allow air monitoring

Youdle, an app that provides consumers with assurances of what’s in stock before shopping

Southern Tier

Agri-Trak, a farm labor management platform

NOSHI, a company that creates organic condiments for children

Carbon to Stone, which helps company achieve sustainability goals by turning carbon dioxide and residual materials into valuable resources

CareTech Human, a company commercialization a product that monitors urological health

Western New York

Dentite, an AI-driven billing platform that creates new revenue streams for dentists

Edenesque, a plant-based dairy startup

energyGuard, an AI-enabled energy management solution for homes

Jeca, which develops and sells nutritional energy bars

Ognomy, a telemedicine platform for sleep apnea

Refraction, a white labeled e-commerce solution for auto dealers

2024 Launch NY Financial Highlights

$14.75 million is the total invested in Upstate New York startups through Launch NY’s #InvestLocal financing programs since the organization was founded eleven years ago.

$2.765 million is the total invested by Launch NY in 2024. This compares to $1.975 million in 2023, $2.320 million in 2022, $2.712 million in 2021, $2.230 million in 2020, and $1.160 million in 2019.

$1.175 million is the amount invested in 2024 by Launch NY’s nonprofit Seed Fund through 20 transactions (13 new and 7 follow-on) in 19 companies. This compares to $975,000 in 2023, $1.325 million in 2022, $955,000 in 2021, $872,500 in 2020, and $855,000 in 2019. Launch NY’s nonprofit Seed Fund is the most active in New York State and has invested $6.570 million since its inception.

$125,000 is the amount invested in 2024 by Launch NY’s Limited Partner (LP) Fund I, comprising 73 LPs, through 3 transactions in 3 companies. This compares to $575,000 in 2023, $715,000 in 2022, $997,273 in 2021, $922,500 in 2020, and $305,000 in 2019. The LP Fund, Launch NY’s first for-profit fund that debuted in 2019 and invests alongside the Seed Fund, has thus far invested $3.64 million.

$225,000 is the amount invested in 2024 by Launch NY’s Investor Network, the first and only online community featuring exclusively Upstate NY startup investments, in three transactions and funding three companies. This compares to $260,000 in 2023, $280,000 in 2022, $1.035,000 in 2021 and $160,000 in 2020, its first year of operation. Thus far, the Investor Network has raised and invested $1.96 million. The Investor Network membership reached new highs with nearly 350 members.

104 is the number of startup companies funded by Launch NY’s #InvestLocal financing programs to date with 55 of these receiving capital from Launch NY’s LP Fund I and 13 of these receiving capital from Launch NY’s LP Fund II. This is an increase from 91 companies at the end of 2023 and 86 companies at the end of 2022. These companies have supported over 724 jobs, attracted $320.9 million in follow-on funding, and generated more than $60 million in annual revenues. More than 50% of Launch NY’s portfolio companies are women and/or minority-led ventures, and more than 74% are located in low-income neighborhoods.

$1.24 million is the amount invested out of new for-profit LP Fund II into 13 deals in 2024, compared to $165,000 in 2023.

Other notable events…

 

Launch NY has developed a leading voice for driving the Upstate New York innovation economy forward and was pleased to continue this role in 2024 in a number of ways.

 

Launch NY is one of the core partners of the NSF Engines: Upstate New York Energy Storage Engine project, which won a major state grant worth up to $160 million in 2024. The project is anchored at Binghamton University, with core partners collaborating to drive value and spinout economic activity from the development of the Upstate NY Energy Storage Engine in Binghamton. Launch NY was tapped to support clean energy technology and venture capital access.

 

A new partnership between Launch NY and Rapid Ventures was launched in 2024, establishing an expanded version of the Launch NY Emerging Cleantech Opportunity Incubator to boost climate-related innovation in Upstate New York.

 

Launch NY continued to play a supporting role in the Shift 2.0 program, led by Buffalo Manufacturing Works. The program aims to remove obstacles that keep manufacturers from making the most of their limited resources.