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|Articles - Jan/Feb 2012|
|Thursday, January 19, 2012|
Page 3 of 5
Tripwire, Hanna Andersson and YoCream weren’t startups when they sold. They were established companies. But some of the challenges they faced ring true for a new generation: Startups are responsible for more job growth in the state than any other sector, noted Nick Fowler, CEO of Perpetua Power Source Technologies, during this past December’s Oregon Leadership Summit. Where the state falls short, he added, is securing the investment capital that allows companies to scale globally.
Scaling — and keeping — Oregon companies wasn’t always a big problem. “Thirty years ago, Oregon was home to quite a number of large companies of national or international stature,” says Jeffrey Wolfstone, another Lane Powell attorney who focuses on M&A. “Relative to the size of the population, that hasn’t kept up. In fact, it’s gone backwards.”
To be sure, globalization plays a big role in the changing corporate landscape. Yet the Oregon pattern contrasts with the dynamic in Seattle, where over the past two decades a number of scrappy startups such as Amazon and Starbucks have blossomed into international powerhouses, now standing alongside the region’s largest longstanding employers such as Boeing and Weyerhaeuser.
“Maybe it’s something in the water here,” muses Wolfstone, “A different type of ambition, or we’re more of a lifestyle city.” Or, as one Portland investor put it, Oregon is a bit lacking in the “animal instinct.” Others point to more material drivers. Oregon’s corporate tax structure favors startups because “you’re losing money,” but acts as a deterrent to growing big, says Ryan Deckert, president of the Oregon Business Association.
Unlike Seattle, Boston, San Francisco or New York, Oregon lacks a major research university — “a geographical anomaly,” says Sue Levin, a former Nike executive who in 1999 co-founded Lucy Activewear, which was sold to a Greensboro-based private equity firm in 2007.
To grow companies “you have to have brains, wealth and business savvy in significant proportions and in proximity to each other,” says Levin, who is now director of the nonprofit Stand For Children. “You do not have it in Eugene and you have it in small quantity in Portland.”
Another “unfortunate thing” is there are not enough Oregon acquirers, says Levin, adding that it takes $50 million to get to profitability in retail. “The only company in Oregon that could have bought Lucy, literally, was Nike.” Levin adds that the original objective was to take Lucy public and “build a large Oregon company,” a decision that was nixed by the company’s original Silicon Valley investors “who had pretty high expectations for return on investment.”
Tuesday, August 19, 2014
BY TOM COX | OB BLOGGER
Tom Cox interviews Steve Balzac, author of "Organizational Psychology for Managers."
Monday, August 25, 2014
BY JASON NORRIS | OB GUEST BLOGGER
Ferguson Wellman’s investment views on the economy and capital markets.
Tuesday, August 26, 2014
BY JON BELL
Startup culture is all the rage. Is there a downside?
Wednesday, August 06, 2014
BY LINDA BAKER | OB EDITOR
Portland startup Green Endeavor strikes gold, inking a partnership with Underwriters Laboratories, an Illinois-based consulting and certification company with offices in 46 countries.
Wednesday, August 27, 2014
BY KLINT FINLEY
Treehouse CEO Ryan Carson builds a 21st-century trade school.
Thursday, August 28, 2014
OB Research Editor Kim Moore shares some pointers about the 100 Best Companies to Work For survey.
Wednesday, August 27, 2014
BY LEE VAN DER VOO
By now we’ve all read the headlines: Starbucks is giving away free degrees. Except it isn’t.
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|Tight and Loose|
|Startup or Grow Up?|
|PBR sold to Russian beverage company|
|Scotland votes to stay in United Kingdom|
|Scotland vote on independence begins|
|Artificial sweeteners may lead to diabetes|
|General Mills expects to save $100M|
|Sony predicts $2.14B loss|
|United Airlines offers $100K buyouts to flight attendants|
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