Annual Report
Board of Directors David J. Colligan, Director, Chairperson Jordan A. Levy, Director, Vice Chairperson George G. Chamoun, Director Zachary L. Shulman, Director James M. Wadsworth, Director Officers: Marnie B. LaVigne, Ph.D., Chief Executive Officer, Secretary Michael A. defreitas, Assistant Secretary Mark T. Branden, Treasurer Launch NY Team Launch NY leadership represents deep entrepreneurial talent committed to serving our clients. Visit LaunchNY.org/Meet-the-Team for biographies of our entire team. Launch NY is a 501(C)(3) nonprofit venture development organization building job and wealth creation in the 27-county region of Upstate New York by supporting high-growth potential startup businesses.
LaunchNY.org I Annual Report 2014 We provide mentoring & funding to startups that are transforming the upstate New York economy. Entrepreneurship is growing in visibility and popularity every day, especially now that leaders such as the Kauffman Foundation have shown that all net new job growth in this country in the last thirty years has come from companies five years old or younger. I was fortunate not only to develop the latest programs for startups during my nearly ten years leading innovation based economic development at University at Buffalo, but also to appreciate the gaps we still have in serving entrepreneurs and growing our entrepreneurial culture in Upstate NY. As a co-founder of Launch NY who was honored to take over the reins of President and CEO in July, 2014, I am committed to building the pipeline of startups who will drive our new economy. Launch NY s venture development business model that provides Entrepreneur-in-Residence (EIR) services and access to seed capital was created based upon best practices of well-established organizations in communities like ours and we are more in demand than ever. This report highlights our effort and results that have come from the vital private and public support of our sponsors who also believe in transforming our region through entrepreneurship. Since starting our operations in late, 2012 through the end of 2014: Launch NY EIRs served 288 companies, employing 927 people, and raising $16,015,000 in follow-on capital. In 2014 the EIR program piloted adoption of a nationally-recognized mentoring model known as the Business Model Canvas to accelerate client progress. Launch NY supported planning, implementation and/or funding of 166 separate entrepreneurship events and workshops attended by 8,419 entrepreneurs, 1,918 investors, and 4,211 resource providers over 14,548 participants total. Marnie LaVigne, PhD President & CEO Launch NY MLaVigne@LaunchNY.org Launch NY served as the host organization for the 43North business plan competition, the largest in the world with $5 million in prizes, attracting nearly 7,000 applicants worldwide in its inaugural year and yielding eleven promising startups in WNY through the signature finals event week held with great acclaim in October, 2014. Launch NY prepared 43North to operate independently for years two and beyond of the contest. Launch NY prepared to complete full implementation of its business model with planning for its nonprofit seed fund to provide direct support for client proof-of-concept activities starting in 2015. Launch NY has unique opportunities and challenges serving a 27-county region of Upstate NY that is ripe with innovation. With cutting-edge mentoring services, our new seed fund and vital private and public support, Launch NY is positioned as the go-to resource for high-growth startups. Marnie LaVigne, PhD President & CEO Launch NY
LaunchNY.org I Annual Report 2014 Accelerating entrepreneurial success. Bolstering Startups: Driving Results Across Upstate New York Uniquely Structured to Help Startups Thrive in the Upstate NY Ecosystem. As a Venture Development Organization (VDO) we are committed to providing entrepreneurs the resources they need to become the catalyst for economic growth of our region. We combine our mentoring and capital programs with access to over 240 partners and collaborators within the entrepreneurial ecosystem. In 2015 Launch NY will add a powerful National Mentoring Network to tap highly specialized resources and markets throughout the country. Proven Process to get Results Our combination of experienced Entrepreneurs-In-Residence, nationally recognized best practice mentoring processes and proof-of-concept funding produces results. Entrepreneurial Ecosystem Launch NY continually makes vital connections throughout the upstate NY Entrepreneurial Ecosystem. Business Stages & Tools Entrepreneurs Partners & Collaborators Investors Investment Opportunities To learn more visit us at LaunchNY.org Finger Lakes Southern Tier Western New York 27-County Service Area Central New York
LaunchNY.org Annual Report 2014 Entrepreneurs-In-Residence (EIRs) Our Entrepreneurs-In-Residence are expert mentors and the backbone of our success. This group of highly experienced professionals stretches across the geography of upstate New York. They are actively networked together and across the ecosystem to ensure that our entrepreneurs have access to their collective years of practical startup experience and connections in diverse specializations. Advanced Manufacturing Consumer Goods and Services Mobile Technology Energy and Clean-Technology Medical Devices IT and Informatics Nanotechnology Life Sciences Best Practice Processes Starting with a deep assessment built around the nationally recognized Business Model Canvas, startups are coached and mentored through the 5 stages of the Startup Lifecycle: EXPLORE START DEMONSTRATE LIFT-OFF GROW Critical Seed Stage Funding Startups are most vulnerable during their early stages when they are trying to validate their product idea. This Proof-of-Concept phase is vital to attract investor capital needed to get products to market and start generating revenue. Each stage provides a roadmap of actions, deliverables and resources needed to move the startup forward. EIR s meet regularly with the startup team to assess their readiness and prepare them to take the next step, whether that be a pitch for funding or accessing a technical resource to help create market ready product. In tandem with its mentoring services, Launch NY is introducing its nonprofit seed fund to fill the gap in Proof-of-Concept funding. Our clients will also receive the benefit of support in using the latest methods of fundraising through our new crowdfunding portal support program that assists them in raising capital online. Global Business Plan Competition Capturing world-wide attention with its wildly successful introduction, 43North is helping to drive the regional startup scene with its annual purse of $5 million in prizes, including a $1 million first prize. The richest business plan competition in the country, 43North s first round held in 2014 netted nearly 7,000 applicants. Now the 11 Winners are located in Downtown Buffalo receiving incubation and mentoring support for their first year, as the community gears up for round two. Launch NY was pleased to support the implementation of this world class program as the host organization for 43North in 2014.
LaunchNY.org I Annual Report 2014 Accelerating entrepreneurial success. Client Highlights Evoke Healthy Foods Rochester, NY Evoke Healthy Foods supports healthy and active lifestyles with muesli products made from high quality real food balancing nutrition and taste. Launch NY assisted Evoke in its early stages of sales and distribution with growth planning, team building and investment deck refinement. This prepared them for acceptance into an intense accelerator program for consumer packaged goods companies in 2014. Through these combined efforts, Evoke has seen significant revenue growth and hired a general manager from the industry. They continue to expand with many large regional grocers such as Wegman s, Whole Foods, Fairway, Giant, Kings, and Stop & Shop. Rachel s Remedy Buffalo, NY As a nursing mother, I knew there had to be a better solution for women to treat their conditions without having to sacrifice mobility, quality of life and the healthiest way to nourish their children. Launch NY helped me to navigate the manufacturing and regulatory processes for bringing my moist-heat medical device to nursing moms everywhere, while setting the groundwork for growing this new business right here in my hometown. Now I m already in the market selling product. Rachel Jackson, Founder and CEO of Rachel s Remedy RachelsRemedy.com Learn more at EvokeFoods.com SwipetoSpin Syracuse, NY SwipetoSpin, offers consumers shopping for cars a 360 view online through their SpinCar product. The company started with an idea to improve the ability to show products on the Web, then made the most of collaborative business guidance and mentoring from regional accelerator programs and Launch NY to ultimately target and reach automobile dealers. Headquartered in Syracuse with a location in New York City, the company already has more than 25 employees and is rapidly growing with the opportunities to apply its technology to virtually any product sector. Learn more at SwipetoSpin.com and SpinCar.com Yank Technologies Binghamton, NY As a hardware startup we need access to capital and equipment as we move toward our minimal viable product (MVP) Launch NY immediately engaged starting with the Business Model Canvas and then had a team of experienced EIR s from the Launch NY network assess our situation to determine the best path. Our EIR devoted a whole day to driving us through planning our Go to Market Strategy which created the priorities around the product and the business model. Josh Yank, Founder and CEO, Yank Technologies YankTech.net
LaunchNY.org I Annual Report 2014 We would like to thank the following funders for their generous support: The John R. Oishei Foundation U.S. Economic Development Administration The Margaret L. Wendt Foundation National Grid Erie County Industrial Development Agency (ECIDA) The Blackstone Charitable Foundation New York State Center of Excellence in Bioinformatics & Life Sciences (CBLS) New York State Electric and Gas (NYSEG) Rochester Gas and Electric (RG&E) The New York Power Authority (NYPA) Empire State Development (ESD) Tompkins County Area Development (TCAD) New York Business Development Corporation s (NYBDC) Financials EXPENSES REVENUE 43North Business Plan Competition $ 3,142,008 43North Business Plan Competition $ 3,221,302 EIR and Support Services $ 460,163 Federal Grants $ 244,198 Program Services Sub-Total (43 North Competition + EIR and Support Services) $ 3,602,171 State Grants $ 31,541 Management and Development $ 234,960 Private Grants and Donations $ 433,100 Total Expense $ 3,837,131 Total Revenue $ 3,930,141 Expenses 43North Business Plan Competition - 82% 12% Revenue 43North Business Plan Competition - 82% 1% 11% EIR and Support Services - 12% 6% Federal Grants - 6% 6% Management and Development - 6% 82% State Grants - 1% Private Grants and Donations - 11% 82%
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