Release Date: June 4, 2014
BUFFALO, N.Y. – Eight companies have been selected as the inaugural group of START-UP NY companies relocating on or near the University at Buffalo campuses, New York State Gov. Andrew M. Cuomo announced today.
Under the governor’s START-UP NY program, the eight companies are receiving major tax incentives to relocate to, start-up or expand in Buffalo through their affiliation with UB.
Each of the companies has strong ties to the university and range from a German life sciences firm to a developer of software for wearable devices. They are projected to generate a combined 204 jobs over the next five years and will collaborate with UB faculty researchers and students.
“START-UP NY is a very innovative way to connect the strengths of a major research university, like the University at Buffalo, with the expertise and energy of entrepreneurs and businesspeople,” said UB President Satish K. Tripathi. “The university is excited to be working closely with these eight companies as they grow, become successful and provide internships and career opportunities for our students and the Western New York community.”
START-UP NY stands for SUNY Tax-free Areas to Revitalize and Transform Upstate NY. The statewide program aims to spur economic development by enabling universities to identify areas where new and expanding businesses can operate for 10 years without paying New York State business, corporate, income, sales or property taxes, or franchise fees.
Approved in April by the state, UB’s START-UP NY plan designates 175,000 square feet of space as tax-free zones on or near the university’s North, South and Downtown campuses. To be eligible, businesses must align with or further the academic mission of the university.
More than 75 companies have expressed serious interest in START-UP NY, said Alexander N. Cartwright, UB vice president for research and economic development, and the university expects agreements with additional companies to be finalized over the next few months.
“START-UP NY is clearly an attractive opportunity for many companies and entrepreneurs,” Cartwright said. “When you add it to the exciting progress being made in Buffalo in life sciences research and informatics, advanced manufacturing, nanotechnology and medical care, START-UP NY has the potential to greatly accelerate the growth of Buffalo’s knowledge-based economy.”
The eight companies announced today are either relocating to Buffalo from outside the state, expanding into new space from local incubators or are new startups spun off from partnerships with UB researchers.
“Buffalo Niagara Enterprise (BNE) is very pleased to work with our partners at the University at Buffalo and Empire State Development to promote START-UP NY and provide economic development assistance to those companies seeking to participate in the program,” said BNE President and CEO Thomas Kucharski. “Our colleges and universities are major economic drivers, and a program like START-UP NY serves as a tremendous catalyst for connecting our higher educational assets with the investment and job creation opportunities we are seeking to attract to the region.
“Two successful BNE projects, Sinapis Pharma and Aesku.NY, are among the companies announced today and we are looking forward to more success stories in the future,” Kucharski added.
Two of the companies – Aesku.NY and Lineagen – were attracted to Buffalo by the opportunity to partner with UB and the New York Genome Center in the work of the Genomic Medicine Network, which will use supercomputing power to analyze patient genomes and develop personalized medical treatments. The Genomic Medicine Network launched in Buffalo this year with $50 million to UB from the governor’s “Buffalo Billion” initiative. The initiative is investing $1 billion in the Buffalo area to spur significant economic growth and create thousands of new jobs.
The eight companies’ planned capital investments over the next 5 years total $6,387,000.
UB’s eight START-UP NY companies are: