The John R. Oishei Foundation will provide a $200,000 grant to support the creation of Launch NY’s nonprofit seed fund, aimed at filling a critical gap in early-stage funding for upstate startups.
The nonprofit fund will be built on grants and tax-deductible donations; any returns can come back to the fund to support investments in future startups. Launch NY said the fund will help “high-growth potential businesses” be investment-ready for angel and venture capital investors.
Launch NY said it will “raise a minimum of $5 million through traditional fundraising from foundations, individuals and other organizations, combined with the latest approach of crowdfunding to engage a broad audience of those who want to see upstate New York flourish.”
The organization said it plans to make the first investment before the end of the year. Launch NY, headquartered in Buffalo, is designed to promote entrepreneurship in 27 upstate counties.