In a burgeoning yet relatively small startup community like Buffalo, it’s important that effort goes a long way.
That’s what many of Launch NY’s goals revolve around this year.
“Collaboration has become the name of the game,” said Marnie LaVigne, president and CEO of Launch NY.
The nonprofit venture development organization in Upstate New York has several investment vehicles including a nonprofit fund, a for-profit limited partner fund and a network of investors who will consider deals on an individual basis.
Launch NY recently started a partnership with 43North to consider investing in 43North’s portfolio companies when they’re raising funds. It was a natural step for the two organizations that already work collaboratively together. (Launch NY was even the home of 43North when it started.)
Launch NY expects to bring a few 43North portfolio companies — including BetterMynd — before its investor network by the end of February.
The partnership is key now with the economic challenges startups face when it comes to funding.
“It’s shaken up the grab bag of investors you really ought to be looking at,” LaVigne said. “It only makes sense for all of us to say, ‘Hey, I already know that investor.' ... So for us, I think you’re going to see a lot more of that.”
She also expects this partnership and Launch NY’s limited partner fund investments to lead to more down-stream deals with companies that are beyond the seed stage.
Launch NY, which started 10 years ago, has invested a total of about $10 million in area startups. That includes its seed fund, which started in 2016 and has invested $5.595 million in 86 local startups.
Launch NY invested $2.32 million total in 2022, $2.712 million in 2021, $2.230 million in 2020 and $1.160 million in 2019.
LaVigne expects to continue the seed fund’s pace of two to four investments per month into this year but the organization is also ready to make adjustments as financing program changes take place.
Launch NY looks for criteria that all investors would want – like companies that will lead to a return on investment – as well as businesses that create positive economic impact and diverse startups from founder and leadership demographics to sectors of businesses.
“We want to be in sync with the economic priorities of our region,” LaVigne said.
