A bold investment by a local foundation is seizing a once-in-a-lifetime opportunity to reshape the Western New York economy.
43North Foundation is capitalizing on the region’s success building a tech and startup ecosystem. The goal: supercharge the ecosystem’s continued growth to create opportunity for generations to come.
The Foundation’s investments focus on four areas: talent, corporate connectivity, storytelling and a venture studio. The 10-year, $100 million plan announced in May is called Lightning Strike. That name is a recognition of this singular moment, when all the elements are in place for powerful change.
“Buffalo has an abundance of assets, and Lightning Strike will ensure we get to work activating them together to achieve outsized impact,” says Bill Maggio, chairman of the 43North Foundation board. “This will transform our community.”
The 43North Foundation is an independent entity that arose out of the success of the 43North business competition and accelerator. The Foundation was created to collaboratively accelerate the region’s momentum around tech, startups and innovation –ensuring the ecosystem is sustainable for future generations.
“The outstanding work of so many organizations has positioned us well. Now, the Foundation is able to make strategic investments in what’s needed next, working with partners that share a common vision,” says Maggio, who is also board chair emeritus of 43North. “We want to get the flywheel of success spinning even faster.”
Two leaders with proven track records have been chosen to guide these transformational efforts.
The first to come on board was Dan Magnuszewski, a longtime figure on Buffalo’s startup scene and the co-founder of ACV Auctions. ACV, which won the 43North competition in 2016, is Upstate New York’s first unicorn – the distinction given to startups valued at $1 billion or more. In October, he was named CEO of Radial Ventures, an entity where promising business ideas are brought to life by a team of proven builders.
Then in January the 43North Foundation named Sarah Tanbakuchi-Ripa, the former CEO and president of TechBuffalo, as the organization’s first CEO.
“Our sole purpose is to help Buffalo grow and succeed,” Magnuszewski says. “That’s the core of what we’re doing.”
To learn how a community can become fertile ground for high-growth startup companies, Foundation leaders have studied other cities.
“We have been looking at ecosystems across the U.S., and what we find is that there’s common elements of success,” Tanbakuchi-Ripa says. “It’s a focus on talent, the presence of startups, a healthy and engaged corporate community, and all of that is wrapped into storytelling. Those are the elements that really enable tech and startup ecosystems to not just succeed but garner a momentum that makes them stand out in ways that are unforgettable.”
Magnuszewski is currently in the early stages of building out the Radial Ventures team, which will have the support mechanisms and resources in place to facilitate the creation of high-growth businesses that are homegrown in Buffalo.
“We have very lofty goals in terms of how many new companies we will create here every year, and they will be companies that may not have existed without a Venture Studio,” he says. “I’m very excited about that, and I want to be part of the reason why we start seeing an abundance of brand-new companies and exciting startups that people want to work at.”
But in order for these startups to succeed, there needs to be adequate talent. That’s where the importance of a talent pipeline comes in, to ready a pool of candidates who are qualified and prepared to fill positions in need.
“We can grow and grow and grow, but can we support the companies that want to come here and build their organizations here with the talent?” Maggio says. “A big focus of ours is to create an awareness around the importance of cultivating talent.”
In addition to creating startups and fostering talent, the 43North Foundation is going to emphasize connections with existing companies here in Western New York. These companies may not know how to actively participate in the region’s growing tech and startup ecosystem, but getting them involved could be mutually beneficial.
“I think that there are a lot of organizations doing really great work in this community,” Tanbakuchi-Ripa says. “When we think about the elements of successful ecosystems, it’s crucial to include them all to ensure that our tech and startup ecosystem is strong, collaborative and inclusive.”
And as the wins continue to pile up, sharing those stories of growth and innovation is an important piece of the 43North Foundation’s plan. By relentlessly sharing information about the ecosystem, the Foundation hopes to inspire community members and show them how they can participate.
“It’s not a zero-sum game,” Magnuszewski says. “We can all win at the same time and, really, we can help each other win.”
The rapid evolution of tech and entrepreneurship is fueling national growth in ways that can bring about generational change in years rather than decades. The 43North Foundation believes it is positioned to strike on that opportunity in Western New York.
“I think we’re at a really unique moment in time,” Tanbakuchi-Ripa says. “The momentum that we have, when combined with our natural resources and cultural assets, means that we’re in a moment where we can accelerate this momentum and create impactful opportunities for generations to come.”
10 years. $100 million. One moment.
There are four key components to a thriving entrepreneurial ecosystem. Here is where the 43North Foundation will focus its investment to help seize a unique opportunity and ensure Western New York’s ecosystem is equitable and built to last.
Corporate connectivity
Fostering a culture of regional collaboration by engaging employers with hands-on learning and practical programming that showcase how businesses benefit from a thriving, collaborative ecosystem.
Talent pipeline
Fueling long-term success of startups and established companies by enabling programs that integrate tech and entrepreneurship skills from “K through Gray,” including a push to attract and retain college talent.
Venture Studio
Building high-growth companies that are deeply rooted in Western New York, where promising business ideas are put into the hands of a dream team of proven builders.
Storytelling
Creating wide-scale understanding of the impact and growing opportunity for the community through a sustained effort to get loud about the region’s growing digital economy and startup ecosystem.
