October 29, 2024
Launch NY and Rapid Ventures partner to launch Emerging Cleantech Opportunity Incubator (ECO) 2.O
Partnership introduces new entrepreneurial support, climate studio and financing pathways to clean energy startups
ECO 2.0 aligns with major initiatives driving clean energy innovation in Upstate NY
Oct. 29, 2024, Buffalo, N.Y. – Launch NY and Rapid Ventures are proud to announce a new partnership that establishes an expanded version of Launch NY’s Emerging Cleantech Opportunity (ECO) Incubator to boost climate-related innovation in Upstate New York.
The ECO Incubator was originally introduced by Launch NY, a nonprofit venture development organization supporting Upstate New York, in 2018 through support from New York Energy Research and Development Authority (NYSERDA). The program provided services that augmented Launch NY’s core offering of pro bono mentorship and capital access support through its InvestLocal Financing Programs.
Since then, Launch NY has seen a surge in clean energy startups which comprise nearly 20% of its investment portfolio, more than double the proportion from before ECO’s inception. With more than 160 clean tech companies served by ECO to date, Rapid Ventures will leverage its expertise to drive scalable climate innovations into areas in Upstate New York that need them the most.
ECO 2.0 will include a Climate Studio, powered by Rapid Ventures, for 15-20 companies annually. The ECO Climate Studio will focus on technology innovation and adoption. It will work with key stakeholders such as corporations, municipalities, housing and state energy agencies, workforce development organizations and investors to build an ecosystem in Upstate New York that empowers the local economy to thrive in a changing climate environment.
The ECO Climate Studio will support hardware and software companies through the “commercial valley of death” with industry-specific commercialization, scale-up strategies and blended funding. The studio will structure and provide access to non-dilutive funding sources– such as grants, tax credits, rebates, catalytic capital and private debt – to complement the equity capital companies raise.
The ECO Climate Studio will serve existing Launch NY portfolio companies and onboard new startups that intend to make Upstate and Western New York a focus market.
“Upstate New York is poised to be a hotbed of cleantech activity in the years ahead, and this project will ensure that entrepreneurship has a voice at that table through the expansion of our ECO Incubator,” said Marnie LaVigne, Ph.D., president and CEO of Launch NY. “ECO 2.0 recognizes that clean energy startups, particularly those developing hardware, are one of the hottest but most complex verticals in venture capital. We’ll give those Upstate New York startups the support they need to turn their early traction into globally relevant products and solutions right here in our own backyard.”
Founded earlier this year, Rapid Ventures blends the bespoke support of a venture studio with more standardized modules of a startup accelerator. The firm brings cutting-edge commercialization practices to communities where major opportunities exist.
Rapid Ventures is led by Gillian Francis, who has more than 23 years of experience in capital markets, blended finance, corporate commercialization, venture impact investing and economic development. Its leadership group also includes Christina Domecq, a successful cleantech entrepreneur and investor.
Francis and Domecq will leverage their experience to connect startups to market adopters in their given industry. This will create the fertile ground necessary for companies to establish pilots and demonstration projects, leading to larger rounds of funding and commercial manufacturing. The ECO Climate Studio will also focus on supporting underrepresented entrepreneurs and underserved communities, giving them a chance to share in the opportunity created by worldwide shifts in the way energy is developed, manufactured, and consumed.
“We believe the renewable energy transition will create economic possibilities for people at all income levels, but we have to be intentional about creating access to entrepreneurship and opportunity,” Francis said. “That’s what the ECO Climate Studio is all about. Launch NY and Rapid Ventures are putting Upstate and Western New York in a position to capitalize on the new energy paradigm.”
The ECO Climate Studio partnership is already supporting a handful of companies, including several that have received investments from Launch NY. It will continue this work moving forward, while also raising capital to support its operations and lending activity.
Innovation in the energy sector is a major focus in Upstate New York right now with waves of state and federal investments. New York state is in the process of implementing its Climate and Community Leaders Protection Act, while Binghamton University is the home of several interrelated battery technology proposals, including a National Science Foundation Engines award of up to $160 million, known as the Upstate NY Energy Storage Engine, for which Launch NY is a core partner. Battery storage innovation is also being supported through New Energy New York Battery Tech Hub and Build Back Better funding.
LaVigne and Francis led a panel on venture capital trends including highlighting the climate tech sector and announcing the new partnership at the NYS Innovation Summit in Syracuse, NY on October 29.
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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 Upstate New York. 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 New York on behalf of job and wealth creation. Since its inception in 2012, Launch NY has served more than 1,700 companies which have gone on to raise more than $1.5 billion, generate more than $265 million in annual revenue and support more than 5,300 jobs.
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 underrepresented and underserved 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 deals marketplace that features hundreds of accredited investors. Through these vehicles, Launch NY is the most active seed investor in New York state and has been ranked among the top 5 nonprofit seed funds in the country. Women- and/or BIPOC-led companies have consistently comprised over 40% of Launch NY’s mentored companies and have received more than 55% of Launch NY’s investment capital.
For more information about Launch NY, its programs, and other entrepreneurial opportunities, visit www.launchny.org, and follow Launch NY on Facebook, Twitter and LinkedIn.
About Rapid Ventures: Rapid Ventures is a place-based climate tech acceleration studio designed to catalyze decarbonization, equitable economic opportunities, and inclusive workforce development in cities, municipalities, and states across the US. Rapid is hyper focused on fostering global market adoption by providing access to stackable non-dilutive funding such as grants, tax credits, rebates, philanthropic capital, and private debt, and curated growth and business development advisory to climate tech and clean energy startups and scaleups to enter new markets.