Launch NY portfolio Company Verivend Acquired in Successful Exit

Verivend has received $275,000 in total direct investment from Launch NY’s funds and Investor Network

Verivend is the third successful acquisition of a Launch NY portfolio company since 2023

May 20, 2025, Buffalo, NY – Launch NY is excited to announce the successful sale of portfolio company Verivend, a fintech startup based in Buffalo. Verivend announced this week that it has been acquired by iAltA, which is owned by investment firm WestCap.

Verivend will be paired with another newly acquired company, Betterfront, to create a cutting-edge tech platform for private market investors to raise, deploy and track capital. Verivend cofounders Rodney Reisdorf and Jonathan Ebel will remain with the company, based in Buffalo. Terms of the deal are not being publicly disclosed.

Verivend was launched in 2019 and was first backed by Launch NY in 2020. The company went on to win a $500,000 award in the 43North competition in 2021 and then spent the next several years building its business. The company started picking up significant steam in 2024 – crossing the 100-customer threshold with a 100% renewal rate – which created the momentum that led to its acquisition. The company has passed the milestone of $2 billion in total transaction volume since being founded in 2019.

Launch NY supported the company throughout that journey. Verivend closed on $125,000 through the Launch NY Investor Network in January for its seed extension round, to which Launch NY also contributed $50,000 from its nonprofit Seed Fund. In total, Launch NY made $275,000 in direct investments into Verivend.

“This exciting moment for Verivend is a perfect example of how Launch NY supports the Upstate New York innovation ecosystem in cutting-edge sectors like fintech,” said Marnie LaVigne, Ph.D., president and CEO of Launch NY. “Our ability to provide first-money-in capital helps companies hit critical milestones that make them attractive to other investors and acquirers. Our flexible mentorship and investment programs step up when necessary at the beginning and in follow-on rounds, propelling our companies into new phases of the startup life cycle and ultimately toward a successful exit.”

“Launch NY played a pivotal role in providing capital we needed to get established in our early days from their funds, then they even followed on not only from their funds, but their Investor Network,” Verivend co-founder and CEO Rodney Reisdorf said. “Having a local source of investment capital and supporters to help us grow right in our hometown was invaluable, and I’m so glad we are part of the momentum showing that you can build a successful startup in this community.”

The only venture development organization in Upstate New York and most active seed fund in New York State, Launch NY started investing in startups within its footprint in 2016. It now has three robust investment vehicles, including a nonprofit seed fund, Investor Network syndicate and Launch NY LP Seed Fund II, which recently announced its final close at $15.775 million.

While venture capital, M&A and IPO markets are all struggling through a lengthy global down cycle, Launch NY has seen a cascade of exits from its portfolio in recent years. Others include:

Dimien, a Buffalo-based clean energy startup that was acquired in 2024 by a larger business based in Boston at the cutting edge of clean energy technology. The new company, Pure Lithium, acquired Dimien’s intellectual property, manufacturing equipment and took on its experienced team.

Patient Pattern, a Buffalo-based startup that developed a platform to improve outcomes and manage risks in high-need medical populations, was sold to Ontario-based PointClickCare in 2023.

Launch NY has many exciting companies in its existing portfolio that have raised significant rounds of institutional capital, are scaling quickly and will eventual continue the trend of successful exits.

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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.

 

Media Contact:
Taylor Griffith
Marketing & Events Manager
Launch NY
tgriffith@launchny.org