The 43North competition is once again accepting applications for its annual competition.
But it’s the end of the competition where people will see big changes this year.
43North is changing its prize structure to award five $1 million prizes to startup founders who can articulate a bright future and a concerted plan to grow in Buffalo.
For the last few years, the competition has been awarding a $1 million grand prize and seven $500,000 prizes.
The new strategy is a reflection of the broader startup economy, where unprecedented amounts of private investment have created soaring valuations, 43North President Colleen Heidinger said. Writing bigger checks is part of a strategy to bring high-quality startups – that have already raised pre-seed or seed capital and have growing teams – to Buffalo.
“We want them to move here and to embrace this opportunity,” Heidinger said. “The five $1 million checks will put us in the best position to attract companies into the Western New York startup ecosystem.”
Broadly speaking, 43North will follow a familiar cadence this year. The nonprofit’s staff is already on the road promoting the competition and will continue to fan out in search of companies that are a good fit for its unique proposition. Heidinger said 43North’s network of venture capitalists and other startup accelerator programs are active in filling the pipeline.
The application period will lead to several rounds of judging before a late October finale event at Shea’s Performing Arts Center, complete with a "Shark Tank"-style pitch event in front of judges to determine who wins the prizes.
Launched in 2014, 43North is funded largely by Empire State Development Corp., which pledges $7.5 million a year to support the $5 million in prizes, logistics of the competition and the 43North incubator space at Seneca One Tower, which houses winning companies.
Companies that accept prizes agree to give up 5% equity and pledge to move to Buffalo for one year. 43North staff and their partners then get to work on convincing them to stay here for the long term.
Not all 43North startups have thrived after winning awards, but numerous notable startup companies have come through the competition. ACV Auctions, the region’s first software unicorn, won the 2015 competition and went public on the NASDAQ stock exchange last year. Past winners such as Circuit Clinical, Squire, Kangarootime, Kickfurther, Squire, Sparkcharge, WhoseYourLandlord and Bounce Imaging are among the companies to subsequently raise significant funding with plans to grow in Buffalo.
Several companies that won awards in the most recent competition – including Flox, ShearShare and Zealot Interactive – have already raised money with the support of local investors.
Heidinger said 43North portfolio companies have created more than 1,100 jobs in Buffalo since 2014.
A collection of 43North startups traveled to Manhattan in late May to pitch their companies to a gathering of venture capitalists. Heidinger was also invited to speak at a recent Rise of the Rest event along with startup community leaders from other regions.
She said 43North succeeded against the backdrop of a clear focus as an economic development tool focused on creating jobs in Buffalo. She said it’s a powerful tool that brings attention to what’s happening in Buffalo,.
“We were created to change the perception that anything can be done in Buffalo,” Heidinger said. “The number of jobs created, along with successes such as ACV (and the arrival of software comapnies Odoo and Bitwise), shows that the wheel is turning in the right direction.”
