As local startups and the region’s tech ecosystem grow and evolve, more funding resources are needed.
Buffalo Inno compiled a few years ago a list of doors local founders could knock on for startup cash. In just a relatively short amount of time, more opportunities have come to light, prompting us to create an updated list.
Some of these are more complex than just traditional venture capital firms and range beyond early stage monies. Read on to learn more.
Impact Capital
Impact Capital, a Rochester-based venture capital firm, raised last year about $12 million, as of July, in its second fund and is ready to invest in startups.
The group focuses on Upstate New York and aims to make Series A investments ranging from $2 million to $3 million and some investments between $200,000 and $500,000 in earlier-stage companies.
The firm focuses on companies that are already in business and have sales, a solid management team and high-growth potential. Despite its focus on Upstate, being based here isn’t a requirement.
Impact Capital’s past investments include Viridi Parente, a Buffalo-based, fast-growing business that has developed both fixed and portable lithium-ion battery storage packs that are capable of storing renewable energy with fail-safe technology for the battery storage system.
Far Out Ventures
Although it’s based in California, Far Out Ventures includes a co-founder who is well recognized in the local startup community.
Jack Greco and partners Jonathan Fentzke and Ian Hathaway founded in 2022 the venture capital fund dedicated to investing in companies across the Americas that are developing business-to-business software.
As of August 2023, Greco had done 21 investments through the fund, along with continuing to make investments locally, whether through the fund or as an individual.
Rich Products Corporate Venture Fund
Buffalo-based Rich Products Corp. has a venture fund that focuses on backing startups related to food and food technology.
While, as of early 2023, the fund hadn’t made a local investment yet, the group is open to the idea.
“It would be great if we could find one in Buffalo,” Dinsh Guzdar, head of Rich Products’ venture fund, said last year.
The fund typically invests in funding rounds ranging from seed stage to Series B. The company does not disclose the total amount its invested.
In addition to funding, Rich Products provides resources to help support the startups that it invests in. That could range from founders talking with Rich Products senior executives about strategy development to consulting for building a manufacturing facility to helping gain access to customers in other markets. It varies by deal, said Guzdar.
The fund has four main food-related areas of focus: the next generation of retail and foodservice; nutrition and health; sustainable production; and dynamic supply chain.
Bold Ventures
Bold Ventures, which launched in 2023, is built on the idea that at the heart of every great investment, company or idea are real people who need to be taken care of mentally, emotionally and physically in order for the venture to thrive.
The fund, a blend of private and public funding, typically makes investments from seed rounds through Series A rounds in industries that are trying to solve “big world problems.” That includes agriculture tech, supply chain and logistics, fintech and clean tech.
Initial investments average around $250,000, but the fund reserves capital for follow-on investments.
The fund provides portfolio companies with resources for mental, emotional and physical health through a nonprofit called Bolder.
Bold Ventures expects to have a Western New York investment in early 2024 and views the area is an attractive region because of its growing startup ecosystem and it’s convenient location in regards to Canada and the New York City area.
The St. Bona Venture Fund I
Got a soft spot for St. Bonaventure University? A newly created venture capital investment vehicle might be a good fit for you.
Chuck O’Neill, class of 1983, launched in December the St. Bona Venture Fund I, a for-profit entity that will operate independently of the university. The goal is to provide private investment opportunities for Bonaventure alumni and university friends, while a portion of the net profits go to the business school.
The fund aims to close its first fundraising round by the end of June and is targeting $10 million, which would allow the entity to invest in 15 to 20 companies over three years. It will focus on early stage companies through Series A investments, with money for follow-on funding.
O’Neill, who is from Rochester and now resides in Tampa, and his wife Karen will contribute half a million dollars to the fund.
He's targeting investments to average around $200,000. The first fund investment is expected to take place in January 2025 and will be based in Buffalo, Rochester or New York City.
Focuses will include investing in companies from the following categories: health, health care services and medical; IT services and new edge technology; women and minority-run companies; transportation and businesses in the Western New York and the Rochester/Finger Lakes regions.
Egret Healthcare Ventures
The fund, launched in 2022, invests in the health care and medical science industries. The firm’s chairman is Bill Maggio, managing director of private investment firm Lorraine Capital, LLC and past chairman of 43North.
Egret exists to identify high-growth startups, inject them with seed capital and help build out companies locally. With the medical devices focus, it seeking to leverage the capabilities at the Jacobs Institute, Kaleida Health’s Gates Vascular Institute and UB’s Clinical and Translational Research Center.
Local investments include Vicora and Ampullae, both the brainchild of Rick Ducharme, a medical device executive recruited to Buffalo’s Jacobs Institute about six years ago.
