Ralph C. Wilson, Jr. Foundation boosts WNY startup ecosystem with $3M grant to Launch NY

As region’s only venture development organization, Launch NY is dedicated to a diverse innovation economy in Upstate NY

 

Wilson Foundation has now made four investments in Launch NY to support investments, mentorship and ecosystem programming

 

Nov. 25, 2024, Buffalo, NY – Launch NY is excited to announce it has received a $3 million grant from the Ralph C. Wilson, Jr. Foundation, contributing to the sustained growth of Upstate New York’s only venture development organization.

 

The Wilson Foundation investment is the continuation of a long-term partnership that includes three previous grants to Launch NY. That support has underscored the expansion of Launch NY and its mission to foster a robust, diverse innovation economy throughout Upstate New York.

 

The latest grant will bolster Launch NY’s nonprofit seed fund, a key source of early capital that substantially boosts deal flow in the nonprofit’s footprint by providing funding to under-resourced founders of high-growth potential startups. It will also boost Launch NY’s mentorship activity and overall high volume operations serving over 350 companies each year.

 

Launch NY’s nonprofit seed fund has invested nearly $8 million in over 100 companies since its started in 2016. Combined with its other for-profit funds and Investor Network, Launch NY’s InvestLocal Financing Programs have funded Upstate NY startups with a total of nearly $14 million. Launch NY isn’t just focused on entrepreneurs – it’s also dedicated to fostering a robust ecosystem of earl-stage investors. With over 70 limited partners in its funds, Launch NY also hosts the Investor Network syndicate, which includes over 340 accredited investors dedicated to angel investments in Upstate New York.

 

Launch NY also will use the Wilson Foundation funding to support its commitment to programming and funding for underrepresented founders. In addition to hosting its Founders Go Big program for this audience, Launch NY has built an investment portfolio with more than 50% of the companies led by women or founders of color, far exceeding national diversity statistics for venture capital funds.

 

“The Wilson Foundation’s support has been crucial for Launch NY from the very beginning in establishing the first venture development organization in our region leading the effort in equitable entrepreneurship and economic development,” Launch NY president and CEO Marnie LaVigne, Ph.D., said. “This is all about the economic renaissance of a community that still has significant poverty issues, so we need to build on the momentum in establishing a new economy and inclusive economic prosperity.”

 

Entrepreneurship and economic development have been pillars of the Foundation’s investment strategy since it debuted in 2015, leading to numerous investments that support startups and small businesses in Detroit and Buffalo.

 

The Foundation is particularly interested in equitable economic development that creates new pathways to prosperity and opportunities for entrepreneurs. Its investments are geared toward creating the conditions where upward mobility is possible.

 

The Wilson Foundation’s $3 million grant to Launch NY in 2016 created its initial capacity to make equity investments out of a nonprofit seed fund and established the most active seed fund in the state by volume of transactions. Since that time, Launch NY has embarked on a steady expansion of its investment capacity and programs that support entrepreneurs and highly qualified staff members on behalf of a sustainable ecosystem.

 

“Launch NY is one of the great multiplier effects that is contributing to the momentum and upswing in Western New York,” said Paul Riser, the Wilson Foundation’s senior program officer for entrepreneurship and economic development. “Launch NY has made great strategic decisions over the years that have made it a leader in equitable economic development. It is a great representation of what successes are possible with targeted, meaningful philanthropic support.”

 

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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.

About Ralph C. Wilson, Jr. Foundation: The Ralph C. Wilson, Jr. Foundation is a grantmaking organization dedicated primarily to sustained investment in the quality of life of the people of Southeast Michigan and Western New York. The two areas reflect Ralph C. Wilson, Jr. ‘s devotion to his hometown of Detroit and greater Buffalo, home of his Buffalo Bills franchise. Prior to his passing in 2014, Mr. Wilson requested that a significant share of his estate be used to continue his life-long generosity of spirit by funding the Foundation that bears his name. Based in Detroit, the Foundation has a grantmaking capacity of $1.2 billion over a 20-year period, which expires January 8, 2035. This structure is consistent with Mr. Wilson’s desire for the Foundation’s impact to be immediate, substantial, measurable and overseen by those who knew him best. For more information visit www.rcwjrf.org.