The state-founded business incubator program 43North will host its final annual startup competition later this year, and then end its accelerator program in 2027. Its leadership says it’s an end of an era, but not the end of its mission to grow and retain businesses in Buffalo.
Colleen Heidinger, president of 43North, calls it a “milestone,” and a “graduation.”
“Phase one is will be complete at the end of 2027. What I’m referencing there is the competition itself,” she said. “We have now the 43North Foundation, who will carry forward the work that we feel is needed for the next evolution of this this economy.”
Established in 2014 with dollars from then-Governor Andrew Cuomo’s Buffalo Billion, 43North has seen some former startup competition winners go on to big things. Perhaps the best-known example is ACV Auctions, which won a $1 million prize from 43North and five years later went to Wall Street with an Initial Public Offering. It now employs 500 people locally, on Ellicott Street.
“You also have Top Seedz, not far down the road there on Oak Street, with 90 to 100 people working in her facility, feeding crackers across the nation, which is unbelievable. You have someone like KAV in the First Ward in the old Barcalo Building making 3D printed (cycling) helmets. And most recently, FoodNerd is out in Clarence in a 30,000-square-foot facility with some major announcements coming from her, so just a few of the kind of wins…”
Officials with 43North point to numbers including more than 3,000 jobs created with about 1,000 staying in Western New York. Seventy five percent of of companies within 43North's portfolio are still in business, with 70 percent of active companies maintaining a presence in Buffalo. Nearly half the companies within the portfolio were founded by people of color, and nearly 30 percent of companies are founded by women.
But it’s sustainability, not necessarily size, that will measure success in the next phase. Heidinger says retaining businesses over the next several years will be the focus of the 43North Foundation in the next phase.
They plan to do it using four pillars Heidinger identified: corporate connectivity, talent development, an AI-led venture studio, and storytelling and visibility.
Something else Heidinger considers a measurement of success is the companies that stay in Buffalo, even if they didn’t win the competition. She named Odoo, a company which offers a suite of open-source business apps, as an example.
The 43North Foundation has $100 million committed for the next ten years. What does Heidinger think will help companies stay?
“What I hear most often is the people we have,” Heidinger said. “We have founders come, we spend a week here during October for finals, we have people come and see spaces, spend time with us, and I think they typically leave feeling something they've never felt before from a community, and that is that people care.”
