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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.”
Thursday, July 31, 2014
BY MARY SPILDE | OB GUEST CONTRIBUTOR
Faced with the aftermath of the “great recession,” increasing concern about the environment and dwindling family wage jobs, we have some very important choices to make about our future.
Wednesday, August 20, 2014
By Kim Moore | OB Editor
The 2015 survey launched this week. It is open to for-profit private and public companies that have at least 15 full- or part-time employees in Oregon.
Thursday, July 24, 2014
BY LINDA BAKER | OB EDITOR
Remember the naysayers? Those who called the South Waterfront aerial tram a boondoggle? Those who rejoiced at the massive sell off of luxury condos at the John Ross and Atwater Place?
Tuesday, July 08, 2014
BY LINDA BAKER | OB EDITOR
The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment.
Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.
Tuesday, August 26, 2014
BY DEBRA RINGOLD | OP-ED CONTRIBUTOR
Why has six years become an acceptable investment in public undergraduate education that over-promises and underperforms?
Monday, July 14, 2014
BY TERRY "STARBUCKER" ST. MARIE
I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.
Wednesday, July 02, 2014
BY JESSICA RIDGWAY | OB WEB EDITOR
Dress for Success Oregon promotes the economic independence of disadvantaged women by providing professional attire, a network of support and career development tools.
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Vigilant enters a New Year with a new president.
How George Fox has become one of Oregon's largest private universities.
Forest Grove sees growth in the burgeoning food and beverage scene.
Lane Powell Shareholder William T. Patton has been appointed to the board of directors for Cascade AIDS Project, an organization that provides educational services and outreach to thousands of Oregonians living with HIV/AIDS.
Fifty-one Lane Powell lawyers were recently selected by their peers for inclusion in The Best Lawyers in America® (Best Lawyers) 2015; of those selected, 23 lawyers are from the Firm’s office in Portland, Oregon.
Barran Liebman is proud to announce that Andrew Schpak, a Partner of the firm, has been named Chair of the American Bar Association’s Young Lawyers Division for the 2014-2015 bar year.