Launch NY Closes Seed Fund II as It Surpasses $15 Million Goal

 

Launch NY closes Seed Fund II as it surpasses $15 million goal

More and bigger deals: Launch NY’s second for-profit LP fund will be crucial source of seed funding for Upstate NY startups

Launch NY gearing up for exclusive events to celebrate LP Fund II close, expansion of Investor Network

 

May 13, 2025, Buffalo, NY – Launch NY is excited to announce the successful closing of its second for-profit LP fund, creating the ability to make more investments and write bigger checks to innovative Upstate NY startups.

The Launch NY Seed Fund II LP surpassed its $15 million goal with a final close of $15.775 million. Contributions came from 85 limited partners that include individuals, regional banks, family offices, higher education institutions, and private foundations. Institutional investors include MetLife Foundation, the University at Buffalo Office of Business and Entrepreneur Partnerships, and NY Ventures, the venture capital arm of Empire State Development Corp.

Launch NY is the leading nonprofit venture development organization in Upstate New York and the most active seed fund in New York state. The milestone is the culmination of several years of hard work for the Launch NY team, which launched LP Fund II in 2023.

Launch NY’s initial for-profit fund launched in 2020 and totaled $5.425 million, and it is invested in 55 companies with only follow-on funding remaining. The new fund will allow Launch NY to approximately double the size of its initial investment into companies to $100,000 or more, compared to $50,000 when LP Fund I was onboarding new companies. With co-investment from its nonprofit seed fund alongside LP Fund II, Launch NY is now making initial investments in companies ranging from $175,000 to $250,000 in total.

While many Upstate NY startup investment sources are limited to a specific community or industry sector, Launch NY’s LP Fund II will continue to invest across industry sectors with a focus on scalable ventures that meet criteria for potential returns, as well as strategic economic development goals for the region. This approach reflects Launch NY’s mission to support Upstate NY startups on behalf of job and wealth creation, while building the overall entrepreneurial ecosystem.

Since the initial close in September 2023, Launch NY has made 19 investments out of Seed Fund II in 16 companies, totaling $1,017,500.

“Achieving our goal of building the largest private sector fund to date strictly dedicated to investing in Upstate NY startups will mean we can accelerate our innovation economy more effectively than ever,” Marnie LaVigne, PhD, Launch NY President and CEO, said. “I’m incredibly grateful to the limited partners who have seen the momentum built by our InvestLocal Financing Programs and decided to join our effort. We look forward to building an exciting portfolio.”

The fund close comes at a dynamic time at Launch NY, which is also actively growing the Investor Network, the online platform for accredited investors who get exclusive access to investment opportunities exclusively featuring Upstate NY startups who are in Launch NY’s investment portfolio. More than 360 members now belong to the Investor Network. Click here to learn more about how to get involved with this unique Network that has no cost to sign up and no obligation to invest.

Launch NY is excited to celebrate these milestones with its stakeholders, including longtime supporters and new investors, at two upcoming events. Accredited investors are welcome to join Launch NY’s Founders & Investors Celebration in Rochester from 4 to 6 p.m. at the Golisano Institute for Business & Entrepreneurship in Rochester (register here) and in Buffalo from 4 to 6 p.m. on June 24 at the Buffalo Yacht Club (register here).

To date, Launch NY’s entire suite of nonprofit and for-profit financing programs have provided $15,669,772 in investment to more than 100 startups, which have gone on to raise over $335 million in follow-on funding, generated $97,925,010 in annual revenues, and supported more than 740 jobs in the region.

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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 2012 Launch NY has served more than 1,800 companies which have gone on to raise more than $1.5 billion, generate more than $276 million in annual revenue and support more than 5,500 jobs. Aligned with Launch NY’s CDFI designation, more than 70% of its portfolio companies are located 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 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 funding New York State companies and has been ranked among the top 5 nonprofit seed funds in the country.