Annual Report

Board of DirectorsDavid 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 TeamLaunch 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.

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.

• 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

“We provide mentoring & funding to startups that are transforming the upstate New Yorkeconomy.”

Marnie LaVigne, PhDPresident & CEO Launch NY

MLaVigne@LaunchNY.org

LaunchNY.org I Annual Report • 2014

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 ResultsOur combination of experienced

Entrepreneurs-In-Residence, nationally

recognized best practice mentoring processes

and proof-of-concept funding produces results.

Entrepreneurs

Partners &Collaborators

27-CountyService Area

Business Stages& Tools

Investment Opportunities

Investors

WesternNew York

Finger Lakes Southern Tier

CentralNew York

LaunchNY.org I Annual Report • 2014

Accelerating entrepreneurial success.

Entrepreneurial EcosystemLaunch NY continually

makes vital connections

throughout the upstate

NY Entrepreneurial

Ecosystem.

To learn more visit us at

LaunchNY.org

Critical Seed Stage FundingStartups 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.

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.

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 ProcessesStarting 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 funding or accessing a technical resource to

help create market ready product.

Global Business Plan CompetitionCapturing 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

SwipetoSpin • Syracuse, NYSwipetoSpin, 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

Evoke Healthy Foods • Rochester, NYEvoke 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.

Learn more at EvokeFoods.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

Accelerating entrepreneurial success.

ClientHighlights

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

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

The John R. Oishei FoundationU.S. Economic Development AdministrationThe Margaret L. Wendt FoundationNational GridErie County Industrial Development Agency (ECIDA)The Blackstone Charitable FoundationNew 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)

We would like to

thank the following

funders for their

generous support:

LaunchNY.org I Annual Report • 2014

Revenue43North Business Plan Competition - 82%

Federal Grants - 6%

State Grants - 1%

Private Grants and Donations - 11%

Expenses43North Business Plan Competition - 82%

EIR and Support Services - 12%

Management and Development - 6% 82%

12%

6%

82%

11%

6%

1%

701 Ellicott Street • Buffalo, New York 14203

LaunchNY.org