Q3 2024 Investment Report

Early afternoon autumn aerial photo view of Ithaca New York.

Q3 2024 Investment Report

Dear Reader,  

Welcome to the Q3 2024 installment of our report on startup investment activities in the Southern Tier region of New York.   

Q3 is typically a quieter period for VC startup funding, reflected in the lower deal volume in the Southern Tier. However, SBIR/STTR grant funding activity remained active with seven new grants announced, totaling $4.53M to startups in the region. This VC lull provides an opportunity to highlight Ecolectro, which recently secured $10.5 million in funding, as a model of the different opportunities and support available for startups in the Southern Tier to leverage.  

Ecolectro is a company developing breakthrough technology to produce green hydrogen more efficiently and affordably –– at <$2.50/kg. The company was co-founded by PhD researchers Dr. Kristina Hugar (CTO) and Gabriel Rodriguez-Calero (CEO). The core technology was developed by Dr. Hugar and Dr. Coates in the Coates Research Group at Cornell University.   

Their path to success leveraged several programs and opportunities. They joined the Center for Life Science Ventures and secured SBIR Funding (From DOE and NSF) while utilizing the SBIR Assistance Program. As a semifinalist in the 76West Clean Energy Competition, they attracted LaunchNY as their first VC investor in their pre-seed round with a $50,000 investment, which led to $17 million in follow-on investments. They have since graduated from the Center for Life Science Ventures and successfully set up operations in Ithaca’s Business and Technology Park. Ecolectro’s journey highlights many of the resources available to entrepreneurs in the Southern Tier and can be a roadmap for others. We encourage others to contact us to learn how they can achieve similar success to Ecolectro in the Southern Tier region of New York State. 

Thank you for providing these leads and for your support of entrepreneurs in our region. We encourage you to reach out to us via our contact page with any tips, corrections, or comments, including colleagues you’d like us to add to our mailing list. Your input is invaluable!  

Best regards,  

Brad Treat  

Program Director, Southern Tier Startup Alliance 

Grants 

Total: $165,000 

Investments 

  • Ecolectro, headquartered in Ithaca, raised $10.61 million through a combination of debt and Series A venture funding in a deal led by Toyota Ventures in August, 2024. Starshot Capital, Energy Revolution Ventures, DNX Ventures, Cornell University, New Climate Ventures, Techstars, and Plug and Play Tech Center also participated in the round. Read more about Ecolectro’s funding.  

Total: $11,130,000 

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR)  

Note: These are federal programs that provide non-dilutive seed funding to startup companies for early-stage product development. Read more about SBIR and STTR grants

Total:  $4,531,500 

Please note: Companies marked with an asterisk (*) may not be headquartered in the region, but they operate in and contribute to job creation in the Southern Tier.   

Investment in the Southern Tier will be distributed on a quarterly basis to highlight the significant startup investment activity in the Southern Tier. Note: while some information is made publicly available in real time, certain fundraising activities may be reported later, leading to potential fluctuations beyond the reporting timeframe. $20,000 is the threshold for determining which funding events to include. 

Coming Attractions 

Wednesday, January 15 | 9 – 10:30 a.m. ET | IncubatorWorks Elmira, 318 Madison Avenue, Elmira, NY 

This event gives local entrepreneurs the opportunity to network with other entrepreneurs over coffee. The January topic is “Maker Month,” where participants will receive a demonstration on how IncubatorWorks Elmira’s Makerspace can help local entrepreneurs and their small businesses. Registration is encouraged, but drop-ins are welcome! 

Wednesday, January 22 | 9 – 10:30 a.m. ET | Rev: Ithaca Startup Works, 314 E. State Street, Ithaca, NY 

The session will fulfill the NYS training requirement for employees, and participants will receive a certificate of completion. Registration is required to attend. 

Tuesday, January 28 | 5 – 7pm ET | FLX Works, 216 North Franklin Street Watkins Glen, NY 14891 

Connect with fellow professionals, enjoy a complimentary beer and wine tasting from Lucky Hare Brewing and Lakewood Vineyards and hear all about the upcoming Schuypreneur Boot Camp, starting in February. 

Thursday, January 30 | 11:45 a.m. – 1 p.m. ET | Online 

In this free workshop, you’ll learn how to validate your idea and create a sustainable, scalable business model based on evidence. Verify that customers want your product or service before expending money and resources to launch a business! 

Thursday, February 13 | 6 – 8:30 p.m. ET | 314 E. State Street, Ithaca, NY 

The event will feature pitches from successful physical product entrepreneurs and include a keynote exploring the growth of hardware innovations over the past decade at Rev: Ithaca Startup Works, while also envisioning advancements for the next 10 years. 

Apply by February 14, 2025, for the early action deadline. The final application deadline is March 28, 2025. 

Over 10 weeks, Rev’s Prototyping Hardware Accelerator guides product teams to determine if their ideas are commercially desirable, technologically feasible, and economically viable. Teams will receive a stipend of up to $2,000 to advance their prototype. 

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