Launch NY Secures $5 Million in Funding to Boost Upstate New York Startups

Launch NY has secured $5 million in funding from Empire State Development (ESD) through its NY Ventures Community and Regional Partner Fund. This critical investment will enable Launch NY to expand its support for entrepreneurs across Upstate New York, furthering its mission to drive economic growth by fostering high-impact startups.

The NY Ventures Community and Regional Partner Fund, backed by $52 million in State Small Business Credit Initiative (SSBCI) funding, provides up to $5 million in matching funds to accelerators, venture studios, and incubators that offer structured support to high-growth entrepreneurs in New York State. This initiative requires a minimum 1:1 match in private funding, which Launch NY is fulfilling through its second limited partner fund, Launch NY Seed Fund II, LP. MetLife, the fund’s lead investor, announced its commitment in 2023.

Strengthening Upstate New York’s Startup Ecosystem

“This $5 million investment underscores New York’s dedication to supporting high-growth startups and presents an incredible opportunity for Launch NY to expand its mission,” said Marnie LaVigne, Ph.D., President and CEO of Launch NY. “We are grateful for Empire State Development’s confidence in us and look forward to empowering entrepreneurs to drive innovation, create jobs, and build wealth for an economic renaissance in Upstate New York.”

Empire State Development President, CEO, and Commissioner Hope Knight emphasized the strategic importance of the investment, stating, “This funding represents a pivotal step in transforming Upstate New York’s entrepreneurial landscape. By providing both structured education and critical 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 position the region as a leading hub for technological advancement.”

NY Ventures, a division of Empire State Development, strategically invests in high-growth companies leveraging technology to address critical challenges across New York State. By increasing access to venture capital in underserved regions and supporting traditionally underrepresented entrepreneurs, including women and minority founders, NY Ventures fosters a dynamic and inclusive startup ecosystem.

As the only venture development organization and U.S. Treasury-designated Community Development Financial Institution (CDFI) serving Upstate New York, Launch NY has invested nearly $15 million in over 100 startups. For the past six years, it has been the most active seed fund supporting New York-based startups. The ESD funding will further enhance Launch NY’s ability to provide tailored mentorship and seed as the only venture development organization and U.S.

Treasury-designated Community Development Financial Institution (CDFI) serving Upstate New York, Launch NY has invested nearly $15 million in over 100 startups. For the past six years, it has been the most active seed fund supporting New York-based startups. The ESD funding will further enhance Launch NY’s ability to provide tailored mentorship and seed capital to scalable businesses, reinforcing a shared commitment to cultivating a thriving entrepreneurial environment.

Launch NY is a nonprofit venture development organization and U.S. Treasury-designated CDFI dedicated to funding and supporting startups in Upstate New York. Since its inception in 2012, Launch NY has assisted nearly 1,750 companies that have collectively raised more than $1.5 billion, generated over $265 million in annual revenue, and supported more than 5,300 jobs.

Aligned with its CDFI designation, over 70% of Launch NY’s portfolio companies are located in low-income neighborhoods. The organization provides pro bono mentoring through its Entrepreneur-in-Residence program, Founders Go Big program for underrepresented entrepreneurs, and the Emerging Cleantech Opportunity (ECO) Incubator. These programs help prepare startups for investment capital through Launch NY’s Invest Local Financing Programs, nonprofit and for-profit investment funds, and its Investor Network marketplace.

As the most active seed investor in New York State, Launch NY has been ranked among the top five nonprofit seed funds in the nation. With this latest funding from Empire State Development, Launch NY is poised to expand its impact, fueling innovation and economic growth across Upstate New York.