Jim Coonan The Oregon Entrepreneurial Ecosystem

My background Business Experience: Consumer Products, Defense/Aerospace, Telecom, Software, Agriculture Entrepreneurial Support: Past Chair of Oregon Entrepreneurs Network (OEN) Past Co-Chair for Angel Oregon Past Chair Tech Alliance Past Chair Portland Angel Network Founding member or the Oregon Quality Initiative Venture Catalyst EDCO/Bend Venture Conference Founding ED for RAIN (Regional Accelerator and Innovation Network) Current Board member for Oregon Growth Board Currently invested in 26 start-ups

Helped to launch Oregon Angel Fund (Portland) OEN Catalyst Fund (Portland) Willamette Angels Fund (in process; Willamette Valley) Seven Peaks Ventures (Bend) Cascade Angels Fund (Bend) Portland Seed Fund (Portland) Elevate Capital (Portland) Oregon InC and signature research centers: ONAMI, OTRADI, Oregon Best Constitutional change to allow universities to hold stock Founder’s Pad Accelerator (Bend) Regional Accelerator and Innovation Network (RAIN Willamette Valley) State wide expansion of the Venture Catalyst strategy: Central Oregon, Willamette Valley, Mid-Coast, Southern Oregon and hopefully Portland Metro

C2 Cattle Company 18495 Hwy 140, Eagle Point, Or 97524

Why is entrepreneurship important?

The Impact of Entrepreneurship . Regions with few large employers need strong entrepreneurial ecosystem Nearly all net job growth 1977-2007 generated by companies < 5 years old Kauffman Study Startups show consistent job growth even during economic downturns Regional Makeup Startups Prevail

The Value of a Vibrant Entrepreneurial Environment Job Creation: A handful of companies (5%) create over 2/3 of all jobs ("high impact" companies) 75% of these are startups and young companies (< 5 years old) Talent Development: Entrepreneurs are place based. They may sell a company, yet most stay to start again They attract other talent critical for growing the economy Wealth Creation: Significant economic impact beyond jobs Attraction and reinvestment of capital Above average wages, payroll, and revenues Creation of new generations of companies and suppliers With permission from OEN

The Third Leg of the Economic Development Stool Opportunistic Recruitment Retention, and… Innovation and Entrepreneurship Innovation and Entrepreneurship has become the third leg of the economic development tool. Why…? (see next slide)

The Problem: Most Start-Ups Fail 100 ideas 10 companies created 3-4 modest growth 1 home run (10 times return) But the problem is how do we get more successful start-ups especially in smaller population regions?

Turning the Tables Best practices have: Access to People/Programs Robust networks Access to capital Source: Scruggs and Assoc. Best practices says when we can combine these advisory services with a robust business network regions can double the success rate of start-ups.

Willamette Valley Example

The RAIN Strategy Programs People Access to Capital Here is our strategy based on what research says works. Accelerators, a vibrant network and resident capital. What is “resident capital?” It is small amounts of early stage capital that is located in the region to support start-ups. One other thing; the Ford Foundation found that a region can increase the “stickiness” of companies to stay in the region by providing the resources they need to grow: capital and advisory services. There you go --- RAIN is about more successful start-ups generating jobs and wealth for our region.

Creating a Pipeline

Our Partners in the Ecosystem Business Oregon* City of Toledo* Cascades West Council of Gov Regional Solutions* Lane Workforce Partnership* Corvallis/Benton ED Office University of Oregon* Palo Alto Software* WIN/WAC/TAC Oregon State University* Concentric Sky* OEN/Oregon Community Foundation* Benton County* Fertilab* Lane County* Lincoln County Economic Development Alliance Ford Family Foundation* Linn County* Technology Assn of Oregon Hatfield Marine Science Center Lincoln County* City of Eugene* SBDC’s * provided funding support City of Springfield* Eugene Area Chamber of Commerce* City of Corvallis* City of Lincoln City* VOX PR* City of Florence* Corvallis Chamber of Commerce City of Albany*

942 Olive Building Eugene

Total legislative dollars received from the state: $2 Total legislative dollars received from the state: $2.0M in current biennium in operating funds; previous biennium $1.225M in operating funds and $2.5M in capital. Total from all sources equal to 5.725M

2016 OEDA’s Award: Outstanding Collaborative Partnership

Example

Venture Catalyst Manager (VCM) Supporting scalable startups by networking them to: Managing Assets: Developing Infrastructure: - Stable of Experts - PubTalks - Bend Venture Conference - Identify and address gaps that affect long-term success People (Mentors /Services) Programs Capital This proposal is being based upon the Venture Catalyst Manager position that is housed within Economic Development for Central Oregon (EDCO). In 2009 EDCO, with the help of volunteers and Senator Wyden’s office, was successful in securing a federal earmark grant that got the position off the ground. The grant provided the much needed “runway” to launch the position and secure other public/private funding to help sustain the effort. EDCO’s VCM is responsible for three key components: Supporting: can be distilled down to three easy-to-remember components – Money (or investment/capital), Mentorship (advisors that have “been there and done that”), and Mortar (or physical assets like wet labs and accelerators). Managing: includes events that provide training to and exposure for startups as well as a database of human capital with a broad range of expertise to guide startups. Developing: this includes things like access to capital for startups (angel and venture funds, CDFIs), accelerators/incubators, etc.

EDCO VCM Record-setting Bend Venture Conference is NorthWest’s largest PubTalks—major growth (300 + attendance at select events) Founders Pad Accelerator—established Cascade Angels Fund—established 7 Peaks Seed Fund—aided development CRAFT3—recruited early stage debt fund Stable of Experts—over 115 mentors Industry Clusters — support existing (i.e. Tech Alliance BOD) and catalyze new ones (i.e. Food Products)

EDCO VCM Measureable Impact . Company Meetings Jobs Created Events Invested Capital Payroll 483 116 53 $9M $4.3M These metrics, which cover a period of 2 years, show the impact a dedicated VCM can have on a region. EDCO Metrics FY July ‘12- June ‘14

EDCO VCM Broad Community Support Private Sector Sponsors Funding for EDCO’s Venture Catalyst Manager comes from both public and private supporters, which is key.

VCM strategy deployment Central Oregon—EDCO Willamette Valley—RAIN Mid-Coast—RAIN Southern Oregon—SOREDI Portland Metro—OEN (in process)

Metrics: year ending June 30th 2016 Willamette Valley, Bend, Southern Oregon Companies Assisted: 272 Jobs Created: 188 Capital Raised: $20.9 Million Economic Impact: $30 Million ROI multiple: Just under 100 times (e.g. invest $1000 dollars get $100,000 return)

Stuff that works Venture Catalyst Strategy Regionally based or regionally focused sources of capital Support for entrepreneurs getting connected: navigating the labyrinth Access to people, programs and capital Resource networks: getting resources connected to each other and collaborating both regionally and state-wide Regional Strategic Planning: don’t sub-optimize/help your neighbors Need for regionally based entity or collaboration of entities focused on entrepreneurship (e.g. OEN, EDCO, RAIN, SOREDI, etc.) Need dedicated, focused staff support—need more than volunteers Think of entrepreneurship as an economic development strategy that needs long term support

Thank-You jcoonan@audiosource.net