1. Jim Coonan The Oregon Entrepreneurial Ecosystem

2. 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

3. 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

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

7. Why is entrepreneurship important?

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

9. 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

10. 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)

11. 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?

12. 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.

13. Willamette Valley Example

14. 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.

15. Creating a Pipeline

16. 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*

17. 942 Olive Building Eugene

18. 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

19. 2016 OEDA’s Award: Outstanding Collaborative Partnership

20. Example

21. 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.

22. 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)

23. 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

24. 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.

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

26. 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)

27. 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

28. Thank-You