Direct support provided to nearly 400 startups and financing portfolio grew to 112 companies; historical jobs impact of nearly 10,000 jobs across 36 counties of Upstate NY.
Jan. 20, 2026, Buffalo, NY – In 2025, Launch NY built on its mission to fuel high-growth entrepreneurship by raising Limited Partner Fund II (LP Fund II) from 85 LPs as the largest private fund exclusively focused on seed stage startups in Upstate NY, surpassing 400 accredited investors in its Investor Network, introducing a statewide program providing hands-on technical assistance to entrepreneurs, and delivering pro bono mentorship to nearly 400 startups in Upstate NY.
Among Launch NY’s 112 portfolio companies that have received funding through its InvestLocal Financing programs, the organization celebrated an acquisition for the third year in a row. This year’s acquisition featured fintech company Verivend, which was acquired by iAlta. Additional portfolio highlights include generating more than $131MM in annual revenue, raising more than $337MM in follow-on financing (nearly 20x Launch NY’s InvestLocal Financing Program funding), and supporting 1,639 jobs. Launch NY portfolio company Dimensional Energy announced a partnership with Boeing to scale its sustainable aviation fuel production, while Bridge Green Upcycle Corp introduced its $20MM Series A fundraising round. Portfolio companies also drove major strategic partnerships, including 3AM Innovations’ collaboration with T-Mobile to bring its first responder software, FLORIAN, to emergency personnel across the country, accelerating growth and expanding national impact.
“2025 reaffirmed that Upstate NY founders are building companies that can compete anywhere in the world and that a growing pool of investors want to be part of this success,” said Marnie LaVigne, Ph.D., President and CEO of Launch NY. “With our new LP Fund II, new partnerships, and record engagement from our Investor Network, we’re demonstrating what’s possible when entrepreneurs have access to the mentorship and capital they need. Even in the face of fluctuating market conditions, we have proved success in strengthening our region’s innovation economy yet again for another year through the efforts of a committed community lifting promising founders.”
Founded in 2012, Launch NY remains the only venture development organization serving all 36 counties of Upstate NY. The organization continues to expand its InvestLocal funding programs, mentorship offerings, and leadership in statewide innovation and entrepreneurship initiatives. It provided pro bono mentorship to nearly 400 startups in 2025 yielding a total of 1,913 new ventures mentored since 2012, supporting 9,963 jobs.
Launch NY Secures Major Grants to Expand Statewide Founder Support
In 2025, Launch NY’s leadership and impact in supporting high-growth startups were recognized through significant funding to grow its entrepreneurship support programs:
$1 Million Statewide SSBCI Technical Assistance Program
Funded by a grant through Empire State Development’s NY Ventures division, this new program provides hands-on legal, accounting, and financial advisory services to early-stage companies. By helping founders improve operational readiness, financial positioning, and investment preparedness, the program removes key barriers to accessing early-stage capital.
$250,000 from the JPMC Foundation
A third award from JPMorgan Chase will enable Launch NY to expand Founders Go Big (FGB), the region’s longest running entrepreneurial support program for under-resourced founders building scalable businesses across Upstate NY. The funding will support targeted outreach, advanced founder programming, and connections to capital, while recapitalizing Launch NY’s Starter Funding program to provide $5,000–$25,000 convertible note investments that help founders reach critical milestones ahead of larger raises.
$200,000 from the KeyBank Foundation
Awarded as part of its national bicentennial initiative, this grant strengthens Launch NY’s role as a Community Development Financial Institution (CDFI), supporting delivery of its mentorship and financing programs, and reinforcing equitable access to seed capital.
InvestLocal Programs Fuel Startups with New Capital and Expanded Capacity
In 2025, Launch NY invested a total of $2.645MM in 17 companies through its combination of nonprofit and for-profit InvestLocal Financing Programs detailed below. The portfolio companies by financing program can be found here. Since 2016, Launch NY has deployed more than $17MM in capital across 112 companies from its funds and additional 2 through the Investor Network. Launch NY’s ability to provide seed capital across Buffalo, Rochester, Syracuse, Binghamton, Ithaca, Albany, and surrounding communities continues to be a cornerstone of its mission, ensuring founders across Upstate NY have access to the resources they need to scale.
Nonprofit Seed Fund Continues to Drive Early-Stage Investment
Launch NY’s Nonprofit Seed Fund, supported by donations and grants, including multiple awards from the Ralph C. Wilson, Jr. Foundation and the U.S. Treasury Community Development Financial Institution (CDFI) Fund, invested $1.195MM in 15 companies, bringing total investment since inception to $8.94MM in 112 companies. This fund is designed to create an evergreen source to capitalize Upstate NY startups as returns are generated, such as through the acquisition of portfolio fintech company Verivend by iAlta last year.
Limited Partner Seed Fund I
Launch NY’s first for-profit fund, Limited Partner Seed Fund I (LP Fund I) of $5.425MM from 73 limited partners, includes 55 portfolio companies, which received $150,000 in follow-on funding in 2025 and yielded returns to investors including proceeds from the acquisition of Verivend.
Limited Partner Seed Fund II Exceeds $15 Million Target in 2025
Launch NY successfully closed its second for-profit financing program, Limited Partner Fund II (LP Fund II) in 2025 at $15.775MM, surpassing its $15MM goal through participation of 85 limited partners, including Empire State Development (ESD), MetLife Foundation, Grand Oaks (Tom Golisano’s family office fund), M&T Bank, NBT (formerly Evans Bank), and dozens of individual accredited investors. Fueled by its initial close in 2023, the fund invested $1.025MM in 10 companies in 2025 for a total portfolio of 20 companies receiving $2.43MM to date. The ESD commitment of $5 million came from ESD’s NY Ventures Community and Regional Partner Fund, supported by the U.S. Department of Treasury State Small Business Credit Initiative (SSBCI).
Investor Network Exceeds 400 Members Fueling Upstate NY Startups
Launch NY expanded its Investor Network, the only online community exclusively investing in Upstate NY startups by growing from 345 members in 2024 to 418 in 2025, which injected $275,000 in 4 companies last year. Beyond Launch NY’s nonprofit and for-profit funds, the Investor Network allows companies to raise additional capital through accredited investors who can commit as little as $10,000 per company through an individual special purpose vehicle on a deal-by-deal basis. To become a member visit https://launchny.org/investors/invest-now/
Portfolio Company Highlights
Launch NY’s portfolio continued to mature and gain national visibility, with companies advancing into larger funding rounds and achieving key business milestones.
Acquisition
Verivend, a Launch NY portfolio company, was acquired by iAlta, marking a significant portfolio exit for the organization. Verivend achieved a landmark year in 2025, highlighted by its successful acquisition by iAltA, a private markets infrastructure platform backed by WestCap. This strategic move positions Verivend to accelerate innovation in private capital transactions while maintaining its Buffalo roots. Prior to the acquisition, Verivend surpassed $2B in transaction volume, secured funding round to enhance its platform capabilities, and expanded partnerships, including a collaboration with EFSI to streamline capital raising and deployment for GPs and LPs. With more than 200 sponsors leveraging its technology and a 100% renewal rate, Verivend continues to redefine efficiency, security, and transparency in private market finance.
Additional 2025 Milestones
- BetterMynd delivered over 30,000 online therapy sessions in 2025 and expanded its number of college clients to 185 institutions nationwide. With the launch of telepsychiatry services through a partnership with Lavender, BetterMynd now offers care in 45 states, maintaining a 91% client retention rate and an exceptional student satisfaction score of 9.43 out of 10.
- SelectFI closed out 2025 with strong momentum, securing a new funding round led by StartFast Ventures and appointing autotech leader Andrew Sweet as CEO. The company scaled its AI-powered Lender Selector™ platform, grew from pre-revenue to seven-figure ARR, and onboarded strategic investors including Automotive Ventures, positioning the company for continued growth in dealership financing.
- For Bitter For Worse completed construction of its 10,000-square-foot production facility in Rochester, NY as it prepared to launch local manufacturing. A winner of the Grow-NY competition, the company has secured half of its $1MM seed round with investments from regional partners. For Bitter For Worse is launching in Whole Foods in April 2026. These steps position the woman-owned brand for accelerated growth in the thriving nonalcoholic craft beverage sector.
- Arbol expanded its Student Financial Success Platform to additional campuses, including its third SUNY institution and second UNC System institution, driving annual recurring revenue growth. The company published a Canisius University case study highlighting improved student retention and fewer financial holds, and was selected for the Techstars Workforce Development Accelerator, underscoring strong market validation.
Full list of companies that received seed capital from Launch NY in 2025
- 3AM Innovations (Buffalo) – software platform to keep first responders safe in emergency situations.
- Arbol (Buffalo) – a financial operating system that helps colleges keep students enrolled by identifying financial risks early and guiding students with personalized support.
- BetterMynd (Buffalo) – web-based therapy for college and university students.
- Bridge Green (Binghamton) – upcycling for lithium ion batteries.
- CryoBio (Ithaca) – an affordable crop spray based on natural biomolecules that protects plants against frost.
- Dimensional Energy (Ithaca) – catalyst technologies that convert carbon into fuels and products that people rely on every day, such as sustainable aviation fuel.
- Edenesque (Buffalo) – plant-based dairy products.
- For Bitter For Worse (Rochester) – non-alcoholic beverages with high integrity ingredients.
- NaraMind (Buffalo) – a online service combining traditional therapy with AI-assisted support
- Nordetect (Rochester) – lab-on-a-chip for precision agriculture and environmental monitoring.
- P1ston (Schenectady) -a cloud-based supply chain add-on for ERPs, used by small- to medium-sized manufacturers.
- Panacheeza (Webster) – a plant-based, dairy free parmesan cheese alternative.
- PhysicianX (Buffalo) – an AI-enabled platform for physician recruitment and search.
- RETRN BIO (Syracuse) – a platform for upcycling agro-industrial waste into biodegradable materials for food packaging.
- SelectFi (Buffalo) – an AI-enabled auto dealership financing pre-qualification and regulatory compliance tool.
- Z-Loupes (Syracuse) – an advanced dental magnification system designed for dentists and dental professionals.
- Zealot Interactive (Buffalo) – digitally-enabled music education platforms for guitar and other instruments.
Expanding Organizational Capacity Through Talent and Technology
New Website Launch Advances Founder Access and Digital Infrastructure
Launch NY unveiled a redesigned website in 2025 featuring:
- Streamlined program navigation.
- Improved founder and investor resources.
- Enhanced storytelling about companies and impact.
- Modernized design and accessibility.
The new site provides a stronger digital foundation for Launch NY’s work across New York State.
Building the Team Behind the Momentum
Launch NY continued to grow its internal capacity in 2025 by welcoming several new team members to support its expanding programs, investment activities, and statewide founder services. These strategic hires strengthen Launch NY’s ability to deliver high-touch mentorship, administer increasing levels of grant funding, and manage its robust investment pipeline.
New team members include:
- Michael Derr, Grants & CRM Administration – Managing grant reporting, quality control, and CRM infrastructure to support Launch NY’s growing portfolio of federal, state, and philanthropic awards.
- Cydney Sanders, Marketing & Engagement Manager – Leading brand visibility, communications strategy, digital engagement, and storytelling across the organization, while supporting Founders Go Big programming and outreach to under-resourced founders.
- Zachary Mizener, Investment Manager – Expanding Launch NY’s investment diligence, deal sourcing, and portfolio management capabilities across all InvestLocal programs.
- Katrina Cropo, Program Coordinator – Strengthening operations for mentorship programs, and statewide founder support services.
- Zachary Pohle, Outreach & Operations Coordinator – Social media strategy, event operations, partner engagement, and regional ecosystem relationships.
Launch NY in 2025: By the Numbers
- $17.394MM total invested in Upstate NY startups since Launch NY’s inception
- $2.645MM total invested by Launch NY
- $1.195MM invested by Launch NY’s Nonprofit Seed Fund in 2025 across 15 transaction
- $150,000 invested by LP Fund I in 2025 across 3 transactions
- $1.025MM invested by LP Fund II in 2025 across 19 transactions
- $275,000 Invested through the Investor Network across 4 transactions
- 112 startup companies funded to date by Launch NY’s funding vehicles with an additional 2 funded through our Investor Network
- Portfolio companies have supported 1,639 jobs, attracted more than $337MM in follow-on funding (nearly 20x Launch NY InvestLocal Financing Program funding), and generated over $131MM in annual revenue
- 55% of Launch NY portfolio companies are women and/or minority-led ventures
- 70% are located in low-income neighborhoods
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About Launch NY:
Launch NY is the only nonprofit venture development organization and U.S. Treasury-designated Community Development Financial Institution (CDFI) that serves and directly funds startups in exclusively in Upstate NY. The core mission of Launch NY is to identify, support and invest in high‐growth, high‐impact companies and to catalyze the entrepreneurial culture of Upstate NY on behalf of job and wealth creation.
Since 2012, Launch NY has served over 1,900 companies which have gone on to raise more than $1.5B, generate more than $323MM in annual revenue and support more than 9,900 jobs. Aligned with Launch NY’s CDFI designation, more than 70% of its portfolio companies are in low-income neighborhoods. Launch NY delivers its mission via mentorship and capital access programs, starting with pro bono mentoring through its Entrepreneur-in-Residence program, Founders Go Big program for traditionally underrepresented founders, and Emerging Cleantech Opportunity (ECO) Incubator. These programs prepare entrepreneurs for investment capital from multiple sources, including Launch NY’s InvestLocal Financing Programs comprised of nonprofit and for profit investment funds, and the Investor Network online marketplace that fields investment opportunities to hundreds of accredited investors. Through these vehicles, Launch NY is the most active seed investor funding New York State companies, and has been ranked among the top 5 nonprofit seed funds in the country.
Media Contact:
Cydney Sanders
Marketing Manager
Launch NY
cydney@launchny.org