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Buffalo firm tapped for fed, state seed capital program
by Allissa Kline, Buffalo Business First Reporter
Wednesday, April 18, 2012
An investment firm in Buffalo is one of six companies in New York state set to share $25 million in federal funding as part of the Innovate NY seed-stage fund program.
SCP Buffalo Incubator LP is in line to receive $4 million to invest in Internet broadband and life science-focused start-ups in Western New York, according to Empire State Development Corp. The $25 million grant from the U.S. Department of Treasury’s State Small Business Credit Initiative, which supports the Innovate NY program, will be combined with $1.5 million from the New York State Small Business Technology Investment Fund to invest in nearly 100 seed-stage companies.
SCP Buffalo Incubator is headquartered in Buffalo and managed by the founding partners of Softbank Capital’s venture capital arm. It will invest in seed-stage companies in the Buffalo area that demonstrate strong growth potential and operate under the umbrella of Seed Capital Partners, ESDC said.
“As small businesses grow, so grows New York’s economy,” Kenneth Adams, ESDC president and CEO, said in a release. “This fund will help attract tens of millions of dollars in new investment for innovative entrepreneurs to grow their businesses and create over 2,200 new jobs.”
Innovate NY is one of three new programs in the state that aims to help small businesses get access to capital and credit in order to create private-sector jobs.