LAUNCH NY SECURES $5 MILLION INVESTMENT FROM EMPIRE STATE DEVELOPMENT TO ADVANCE HIGH-GROWTH ENTREPRENEURSHIP IN UPSTATE NEW YORK

Strategic State Partnership Amplifies Launch NY’s Mission to Transform Regional Startup Ecosystem

 Buffalo, NY – February 5, 2025 – Launch NY has secured $5 million in funding from Empire State Development through its NY Ventures Community and Regional Partner Fund. With this critical funding, Launch NY will continue to expand its support for entrepreneurs across Upstate New York, furthering its mission to catalyze high-growth startups and drive economic prosperity in the region.

Empire State Development’s NY Ventures Community and Regional Partner Fund, supported by $52 million in State Small Business Credit Initiative (SSBCI) funding, is designed to provide up to $5 million in matching funds to accelerators, venture studios, and incubators that offer structured programmatic support to entrepreneurs with high growth potential in New York State. More information about the Fund’s objectives can be found here. The Fund requires a minimum of 1:1 matching capital from private sources, which  Launch NY is fulfilling through its second limited partner fund, Launch NY Seed Fund II, LP, whose lead investor, MetLife, announced its commitment in 2023.

“This $5 million investment is a testament to New York’s ongoing commitment to supporting high-growth startups, offering an incredible opportunity for Launch NY to build on our mission of catalyzing economic growth through high-impact entrepreneurship,” said President and CEO of Launch NY, Marnie LaVigne, Ph.D. “We are grateful for the confidence Empire State Development has placed in us, and we look forward to continuing our work of empowering our promising entrepreneurs to drive innovation and create jobs and wealth for our economic renaissance across Upstate New York.”

Empire State Development President, CEO and Commissioner Hope Knight said, “This strategic investment in Launch NY represents a pivotal step in our mission to transform Upstate New York’s entrepreneurial landscape. By providing both structured education and vital funding to high-potential startups, we’re not just supporting individual entrepreneurs – we’re building a sustainable ecosystem that will drive innovation, create quality jobs, and establish the region as a leading hub for technological advancement. This partnership exemplifies our commitment to fostering the next generation of business leaders who will shape New York’s economic future.”

NY Ventures, a division of Empire State Development, strategically invests in high-growth companies that leverage technology to solve critical challenges across New York State. Through targeted investments and partnerships, the division expands access to venture capital for underserved regions and traditionally underrepresented entrepreneurs, including women and minority founders and fund managers. By bridging public and private sector resources, NY Ventures is building a dynamic, inclusive startup ecosystem that drives innovation throughout the state.

As the only venture development organization and U.S. Treasury designated Community Development Financial Institution (CDFI) serving the Upstate Community, Launch NY has invested nearly $15 million in over 100 startup companies to date and has been the most active seed fund capitalizing New York state startups for the past 6 years. The ESD funding will catalyze even greater reach and impact throughout the Upstate New York region, through Launch NY’s model of pro bono, tailored mentorship paired with seed capital financing for scalable businesses. The funding underscores the shared mission of Launch NY and Empire State Development to create a thriving entrepreneurial ecosystem.

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 nearly 1,750 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. 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.