Jim Coonan The Oregon Entrepreneurial Ecosystem My background

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 In. C 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

C 2 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 Startups show consistent job growth even during economic downturns Kauffman Study Regional Makeup Startups Prevail Nearly all net job growth 19772007 generated by companies < 5 years old

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

The Problem: Most Start-Ups Fail • • 100 ideas 10 companies created 3 -4 modest growth 1 home run (10 times return)

Turning the Tables Best practices have: • Access to People/Programs • Robust networks • Access to capital Source: Scruggs and Assoc.

Willamette Valley Example

The RAIN Strategy 1. Programs 2. People 3. Access to Capital Catalyzing entrepreneurship in Oregon www. oregonrain. org

Creating a Pipeline

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

942 Olive Building Eugene

2016 OEDA’s Award: Outstanding Collaborative Partnership

Example

Venture Catalyst Manager (VCM) Supporting scalable startups by networking them to: - People (Mentors /Services) - Programs - Capital Managing Assets: Developing Infrastructure: - Stable of Experts - Pub. Talks - Bend Venture Conference - Identify and address gaps that affect long-term success

EDCO VCM • Record-setting Bend Venture Conference is North. West’s largest • Pub. Talks—major growth (300 + attendance at select events) • Founders Pad Accelerator—established • Cascade Angels Fund—established • 7 Peaks Seed Fund—aided development • CRAFT 3—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 $9 M $4. 3 M EDCO Metrics FY July ‘ 12 - June ‘ 14

EDCO VCM Broad Community Support Private Sector Sponsors

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

Metrics: year ending June 30 th 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