U of R Leading Upstate "Seed Fund" Effort

By Zack Seward

Rochester, NY – The state is handing out $2 million to the University of Rochester to help upstate tech start-ups get off the ground.

The Upstate Regional Seed Fund is designed to help companies in everything from telecommunications to agriculture.

But before the $2 million winds up in the hands of entrepreneurs, it will already have made a few stops.

The money is funneled from the state Assembly, through Empire State Development, and to the University of Rochester.

It's then doled out by a non-profit called Excell Partners, which is a university-affiliated economic development firm.

Peter Robinson is the chairman of the board at Excell, and the Chief Operating Officer of the University of Rochester Medical Center.

He says the goal is regional economic growth, and that the seed fund is a good model for reaching it.

"This kind of investment is probably one of the most efficient job creation strategies that the state can undertake," said Robinson.

Robinson admits that job creation at early stage ventures can often be counted on fingers and toes. But with proper backing, he says the seed fund model can work.

"We believe that when you have enough of a critical mass of these investments, enough will work that the return on investment in the aggregate will make it a worthwhile strategy."

It's an approach the fund's creators hope the incoming Cuomo administration is on board with.

After the $2 million is spent this year, Robinson hopes the fund finds a home in a future budget.

The cash was initially outlined in the governor's 2011 budget, but was ultimately nixed.

The seed fund also enlists the support of Cornell and Syracuse University in finding firms worthy of equity investments.