Fueling Innovation and Expanding Access to Capital: Launch Tennessee

In celebration of our partners and the impactful work they do to expand economic opportunity, we interviewed several of our Nasdaq Foundation quarterly grant recipients to learn more about their roles, backgrounds, and the significance of their missions. We spoke with Emily Masters, Development Director at Launch Tennessee, about their work to strengthen the state’s entrepreneurial ecosystem through capital, commercialization, and connection.

Tell us about Launch Tennessee. What is its core mission, and how does it empower economic opportunity in the communities you serve?

As Tennessee’s hub for startups and innovation, Launch Tennessee’s mission is to empower innovators across Tennessee by providing capital, commercialization and connections.  

We are driving economic growth in several ways.  

LaunchTN provides direct investments to high-growth, venture-backable startups across the Volunteer State. We also offer commercialization services to help innovators take their ideas from academic lab to commercial market.  

And, we lead a statewide network of partners that includes eight entrepreneur centers and six industry organizations across Tennessee — all of which drive economic opportunities by offering a range of resources to entrepreneurs.  

Can you share a moment when you saw the impact of Launch TN come to life? What change did that moment help spark in terms of financial empowerment?  

Tennessee founder Téa Phillips found herself ready to move out of Tennessee so she could have a better chance at funding her company ATS Solutions. Enter InvestTN. Everything changed. She received InvestTN funding and it allowed her to stay in Tennessee, which was always the goal. That’s a win for Téa, a win for LaunchTN, and a win for the state of Tennessee. Since staying in Tennessee, Phillips has been raising money and selling her Metaflex product online through Amazon and her own website.  

ATS Innovations has successfully completed their pre-seed round totalling over $500,000 to fuel the growth of the MetaFlex brand. This has resulted in the hiring of one full-time employee to run marketing and they're currently recruiting another FTE for social media management. Additionally, June is shaping up to be their biggest sales month yet!!  

Your "InvestTN" fund invests in early-stage startups and venture funds in Tennessee. What makes this fund distinctive, and how do you anticipate the Nasdaq Foundation's Quarterly Grant helping you measure and amplify its impact?

Powered by Launch Tennessee, InvestTN is a $70-million fund that makes equity investments into Tennessee-located, venture-backable startups (Pre-Seed, Seed, Series A and B) and venture capital funds.The program is funded through the U.S. Treasury’s SSBCI Program.

A core difference between InvestTN and Launch Tennessee's previous capital funds is that InvestTN does not provide "matching" capital. InvestTN provides "catalytic" capital that is required to be matched, at a minimum 1:1 (on the same financial terms) by private capital investors.

Support from the Nasdaq Foundation grant will allow LaunchTN to spread critical funding and investment opportunities to entrepreneurs in all corners of the state. From a 10-city tour to making deeper connections for the InvestTN pipeline.  

After the events and throughout the year, LaunchTN’s capital team will continue to collaborate closely with Capital Coordinators at each Regional Entrepreneur Center. These coordinators support companies in their communities by helping them navigate access to capital and offering guidance on InvestTN applications. In addition to fostering these connections, the initiative expands access to capital, strengthens regional ecosystems, enhances investor readiness, and drives long-term economic growth.  

The grant funding will help us spread the message to hundreds of thousands of Tennesseans in all corners of the state. And the road tour is not simply about introducing the fund — we’re bringing experts in lending, VC and more who can discuss what kind of funding is right for each entrepreneur.  

What’s one surprising insight or strategy your team has discovered that’s opened up new possibilities for the people you serve to grow their businesses and build more secure financial futures?

Catalytic dollars create a multiplier effect by drawing additional private investments for founders working with InvestTN. The strategy allows the larger startup ecosystem to grow because we are bringing in new dollars in addition to InvestTN funding to really provide a springboard for founders.  

What lasting impact do you hope Launch TN will help shape in the communities you serve?

We hope that empowering people and areas who might not otherwise get funding will create a lasting impact by building up those underserved communities and setting them on the path to economic development and innovation. We also hope that the relationships made through LaunchTN will strengthen the entire state’s entrepreneurial ecosystem and create a synergy that drives ongoing growth throughout the state.  

This is also a chance to see that there are more robust capital environments in communities across Tennessee than many may realize. We are helping startups grow and scale outside of major coastal markets.