Annual Report 2015
480 Over startup businesses served comprising over 1,241jobs What startups are saying about the vital guidance and expert connections Launch NY is providing. Rachel s Remedy 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 & CEO, Rachel s Remedy, medical products company Board of Directors Officers George Chamoun, Chairperson President, Service Provider Sales & Marketing, Synacor Jordan Levy, Vice Chairperson General Partner, SoftBank Capital NY Managing Partner, Seed Capital Partners Co-Managing Partner, Z80 Labs Paul T. Hogan, Director Executive Vice President, The John R. Oishei Foundation Zachary L. Shulman, Director Managing Partner, Cayuga Venture Fund Director of Entrepreneurship, Cornell University Marnie LaVigne, Ph.D., Secretary President & CEO, Launch NY, Inc. Michael A. defreitas, Assistant Secretary Attorney, William C. Moran & Associates, P.C. George Chamoun, Treasurer President, Service Provider Sales & Marketing, Synacor
LaunchNY.org I Annual Report 2015 We provide mentoring & funding to startups that are transforming the upstate New York economy. Marnie LaVigne, Ph.D. President & CEO, Launch NY MLaVigne@LaunchNY.org It is inspiring to see our region gaining momentum in building its new economy. New construction is the obvious sign, but leadership, collaborative spirit, and acceleration of our business growth are the underpinnings of the visible progress in our community. Given the virtually universal recognition that high-growth startup businesses are the key driver of job and wealth creation, it was gratifying that 2015 was a year of significantly increased demand for our services. Launch NY conducted up to six client intakes weekly and grew our vital role in mentoring the startup business community to 484 companies, who have employed 1,241 people and raised $23.9M in new capital. This report lets you hear firsthand from our clients, who truly motivate us every day. I also welcome you to visit our website for more highlights and to contact me to learn more and even meet our talented team and client companies. Launch NY continues to keep abreast of best practices nationally and internationally to provide leadership in our expanding entrepreneurial ecosystem. We were pleased to be stewards of the 43North program through its first year of operation and to facilitate spinning it out in 2015 to a freestanding business plan competition that is well-positioned to bring visibility and energy to our startup community. We also expanded our efforts to join forces with other organizations to share our resources in delivering entrepreneurship programs and avoiding duplication of efforts. As our entrepreneurs launch businesses that need to operate in a global economy, Launch NY has recognized the need to foster connections with those outside our region. Through a combination of our generous private sector supporters and a federal award from the U.S. Economic Development Administration, we established access to a National Mentor Network of 2000 business and industry specialists to augment our local Entrepreneurs-in-Residence in supporting our clients. In addition, I am grateful to the private sector for supporting Launch NY s crowdfunding campaign, the first among venture development organizations in the country to create our new Launch NY Seed Fund that we incorporated in 2015. The Fund represents the completion of Launch NY s original business model to offer proof-of-concept capital together with pro bono mentoring to prepare companies for follow-on funding. Next year promises to be an exciting one as our nonprofit fund makes its first investment in early 2016 and pursues additional donations and awards to this evergreen fund that will help the most promising entrepreneurs transform our regional economy today and tomorrow. Marnie LaVigne, Ph.D. President & CEO, Launch NY
LaunchNY.org I Annual Report 2015 Bolstering Startups Buffalo Automation Group The Launch NY EIR and the Launch NY team have helped us fine tune our business to the real needs of the market and have been an invaluable source of encouragement. Thiru Vikram, CEO Buffalo Automation Group, automated navigation technology company Evoke Healthy Foods, Inc. Launch NY provided support for fundraising and making connections with manufacturing and distribution. Being able to make connections across the entire state has been the greatest value. I connect with Launch NY a couple times a month to use them as a resource. If I m working on a presentation or need to make a connection, they give me feedback or help me with a resource. Ian Szalinski, President & Founder, Evoke Healthy Foods Inc., muesli food products company 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 in our region. We combine our Entrepreneur-in-Residence mentoring program, new National Mentor Network, and capital programs with access to over 240 partners and collaborators within the entrepreneurial ecosystem. In 2016 Launch NY will make its first investment from the Launch NY Seed Fund that was created in 2015. Proven Process to get Results Our combination of pro bono world class mentoring, based on nationally recognized best practices, and proof-of-concept funding produces results. Entrepreneurial Ecosystem Launch NY continually makes vital connections throughout the upstate NY Entrepreneurial Ecosystem. To learn more visit us at LaunchNY.org. Atinga, Inc. Launch NY has been a supportive go-to for us over the past two years. Because of the way they network and reach out to local social/traditional entrepreneurs, we know that we can turn to their counsel whenever needed, and have done so in the past. I ve gotten to know four professionals on a personal basis over the past two years at Launch NY. Business Stages & Tools Entrepreneurs Partners & Collaborators Investors Investment Opportunities Chris Way, Managing Director, Atinga, Inc., artisan footwear company Western New York Finger Lakes 27-County Service Area Southern Tier Central New York
LaunchNY.org Annual Report 2015 Entrepreneurs-In-Residence (EIRs) Our Entrepreneurs-In-Residence are expert mentors and the backbone of our success. This group of 12 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 National Mentor Network Building a new economy means supporting emerging industries with connections on a global scale. In order to augment Launch NY s pro bono local mentoring resources, in 2015 received $1.25M in funding from the U.S. Economic Development Administration (EDA) and private funders to add specialized mentoring capabilities through a new National Mentor Network. Based on a partnership with the award-winning Innovation Center of the Rockies (ICR), Launch NY clients now can tap ICR s 2000 mentors for business, industry, and technical expertise in combination with our local EIRs. ICR is a non-profit organization that originated in Colorado with a focus on technology commercialization with university partners, which now has expanded its work into other states and early stage, small businesses in innovation-driven sectors such as clean technology, bioscience, IT/software, aerospace, food, and more. The EDA award also allowed Launch NY to partner with Syracuse University to leverage its intellectual property expertise by engaging its NYS Science and Technology Law Center. 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 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 the Launch NY Seed Fund or other funding or accessing a technical resource to help create market ready product. * Alex Osterwalder, The Business Model Canvas, Business Model Foundry, http://businessmodelgeneration.com/canvas/bmc Launch NY Seed Fund LLC Launch NY completed its original business plan when it legally established its nonprofit Launch NY Seed Fund LLC (LNYSF) in 2015. Additionally, fundraising for LNYSF was boosted through the first crowdfunding campaign by a venture development organization in the country, combined with traditional approaches to individuals and organizations. Based on a $5M target, $250,000 of committed capital and prospects for more than $2M in donations are in process to build this evergreen fund. In early 2016 LNYSF will start to make investments of $25,000 to $100,000 in client companies to provide proof-of-concept funding that will accelerate high-growth startups ability to attract follow-on capital from other investors. By providing this first money in together with pro bono mentoring services, Launch NY is the only organization in the region to fill the gaps in seed capital funding and entrepreneurial support in all industry sectors across the 27 westernmost counties of New York State.
LaunchNY.org I Annual Report 2015 Financials Euphony Inc. My EIR encouraged me to join Launch NY, just as I was wondering if I was stuck in my own echo chamber regarding business planning and client development. Most recently, he has been able to connect me to the NYS Science and Technology Law Center, through a partnership with Launch NY, which has helped in performing a prior art search on our intellectual property. Fuz Eller, President, Euphony Inc., text-to speech technology company EXPENSES EIR and Support Services $ 765,562 43North Business Plan Competition $ 26,661 Program Services SubTotal (EIR and Support Services + 43 North Competition) $ 792,223 Management and Development* $ 237,801 Total Expense $ 1,030,024 * includes loss on transfer of $54,720 via spin out of 43North into separate legal entity REVENUES Federal Grants $ 101,978 Geri-Safe 43North Business Plan Competition $ 26,737 State Grants $ 0 The Launch NY EIR and the Southern Tier Startup Alliance in partnership with Launch NY have provided invaluable support in helping to get our device through the rough prototype phase to a more sophisticated design by assisting with the design process, providing supplies and equipment, and increasing our network capabilities. They truly represent an accelerator program. Robert R. Karpman, MD, MBA Founder and CEO, Geri-Safe, medical device company Thimble Private Grants and Donations $ 891,853 Total Revenue $ 1,020,568 Expenses 43North Business Plan Competition - 3% Management and Development - 23% EIR and Support Services - 74% 3% 23% 74% No one will ever love your business as much as you do. But our EIR has done such a wonderful job learning as much as he can about our business so he can help us think about the next 18 months and what Revenues 43North Business Plan Competition - 3% 3% 10% to expect. It is because of this that we re ready to get in front of angels and investors and be prepared Federal Grants - 10% to have any kind of talk - and of course confront any obstacles head-on that come our way. Private Grants and Donations - 87% 87% Oscar Pedroso, CEO, Thimble, DIY electronics kit company
LaunchNY.org I Annual Report 2015 Thank you We would like to thank the following funders for their generous support: This material is provided for in part through a partnership with the USDOC Economic Development Administration. Empire State Development (ESD) New York Power Authority (NYPA) New York Business Development Center (NYBDC) Tompkins County Area Development (TCAD) The Margaret L. Wendt Foundation Founder s Circle As we introduce the Launch NY Seed Fund we want to thank our Founder s Circle Supporters, and the 100+ others who donated to our 2015 Crowdfunding Campaign, the first of its kind for a venture development organization in the country. Launch NY welcomes additional donors to be part of building this evergreen fund and our pro bono mentoring services that catalyze startups of today and tomorrow. To join us, please contact Marnie LaVigne at mlavigne@launchny.org. Banking Insurance Investments
We are a Venture Development Organization (VDO) encompassing the 27 counties of Upstate NY, playing a unique and necessary role providing pro bono expert mentoring and access to proof-of-concept funding to high-growth potential startups. 77 Goodell Street Suite 201 Buffalo, NY 14203 LaunchNY.org