|| Print ||
|Articles - February 2011|
|Thursday, January 27, 2011|
Page 2 of 7How did they do it?
Investor and entrepreneur Eric Pozzo was the nominated chairman who led the Angel Oregon selection and investment process in 2005 as a volunteer with the Oregon Entrepreneurial Network. “We did a lot of research, found the companies to present, went into a room, voted and signed a big check to these individuals,” he recalls. “Everyone very much enjoyed it, and at the end of the process a lot of us wanted to do it year-round… We wanted to turn it from a small one-time pop to a well-organized machine that constantly cranks through deal flow and is very much investor driven.”
Pozzo’s ideas made sense to Eric Rosenfeld and his colleagues at Capybara Ventures. Rosenfeld had been wondering whether the traditional model of investing — “You surrender your money to a couple of smart people and they decide how to invest it on your behalf” — was becoming obsolete. Rather than perpetuate that model Rosenfeld was eager to embrace the lessons of the rise of Web 2.0, Google and Facebook: the “phenomenon of people wanting to contribute and share, not just to consume, but to be a part of something, and shape it.”
With those ideals in mind, Rosenfeld and his partners developed a new model for participatory investing. Twenty investors with deep collective knowledge of markets, technologies and business operations would put $25,000 each into an annual fund established as a limited liability corporation. They would pool their expertise as well as their money to research companies in depth, then vote on which ones to back, with a two-thirds majority required for the money to flow. The two-thirds threshold would set high standards, the size of the group would widen its perspective and the one-year nature of the fund would force decision-making. The entire fund would be invested each year, with a newly formed LLC replacing it in the following year. Entrepreneurs would be motivated to apply because the money is already in the bank waiting for someone to take it. Investors would be motivated to take due diligence seriously because it’s their money on the line. Everyone would be motivated to bring new businesses into the process, because the more companies that apply, the better the odds that one will succeed spectacularly. Individuals within the group would be more likely to invest on their own knowing the company had earned the support of a diverse collection of accomplished businesspeople.
They didn’t find 20 investors that first year; they found 36. They signed on the Ater Wynne law firm, the Geffen Mesher accounting firm and OEN as sponsors and made four investments in 2007. The state got involved as a non-voting member the following year, contributing matching funds from the Oregon Growth Account and treating them as a pure investment rather than the typical ribbon-cutting-style economic development project. Word spread, and the pool of investors grew. Today about 80 investors are involved. Most have voting rights although a few invest passively. The 2011 fund will exceed $3.1 million, with more than $1.6 million raised from investors, matched by $1.5 million from the state’s Oregon Growth Account. The plan is to invest $400,000 to $750,000 into four to five hot Oregon companies, selected for the talent of their teams and the quality of their ideas.
“We’re at a size now where someone in the room is going to know about any given market or technology that comes before us,” says Rosenfeld. “And if they don’t, chances are they will know someone who can help us understand it.”
The fund is managed by Pozzo, Rosenfeld, and Capybara associate Shannon Heim, who organize meetings and negotiate terms with the companies seeking funding. The investors range from retired executives with decades of experience to newcomers who have made millions in emerging web technologies. Among the more active members are Pixelworks co-founder Bob Greenberg, Intel Capital veteran Drew Smith, former Novas Software CEO Scott Sandler, Vesta CEO Doug Fieldhouse and retired marketing executive Donna Blake.
Greenberg, who retired from Pixelworks at age 44 in 2005, estimates he has invested about $250,000 in local companies since becoming involved in the angel fund. “I like the group, I like the process and I like the results,” he says.
Thursday, February 05, 2015
BY JACOB PALMER | OB DIGITAL NEWS EDITOR
We ask chiefs of staff for the scoop on Oregon legislators.
Tuesday, February 24, 2015
BY LINDA BAKER | OB EDITOR
At Oregon State University, a 21st century version of the bad dream — nuclear terrorism — is alive and well. This winter, the Department of Nuclear Physics and Radiation Health Physics created a new interdisciplinary graduate emphasis in nuclear forensics, a Sherlock Holmes-sounding program that aims to identify how and where confiscated nuclear and radiological materials were created.
Thursday, March 19, 2015
BY APRIL STREETER
How the private sector can ride the next transit revolution.
Friday, February 20, 2015
BY LINDA BAKER | OB EDITOR
Vacasa may lack the name recognition of Airbnb. But not for long.
Thursday, March 26, 2015
BY LINDA BAKER
Everyone knows cell phones and driving are a lethal combination. The risk is especially high for teenage drivers, whose delusions of immortality pose such a threat to us all. Enforcement alas, remains feeble; more promising are pedagogical approaches aimed at getting people to focus on the road, not their devices.
Wednesday, February 25, 2015
BY KIM MOORE | OB RESEARCH EDITOR
Wednesday, March 04, 2015
BY JACOB PALMER | OB DIGITAL NEWS EDITOR
On Wednesday night, a couple days ahead of the 2015 season kickoff, Major League Soccer and the Players Union reached an agreement.
|Bike Chic: 7 stylish options for cyclists|
|Get on the bus!|
|Beam Me Up|
|Emperor of the Sea|
|Epitaph for a Boondoggle|
|Shoe factory workers in Vietnam strike|
|Bankruptcy court approves sale of RadioShack to Standard General|
|Student loan debtors face default in repayment strike|
|Jay Z unveils streaming music service|
|Volvo plans $500M car factory in US|
|Oil crash starting to hurt in Texas|
|Swiss bankers guilty of tax fraud avoid jail|
A new report highlights how Oregon bankers are giving back to their communities.
Since 1932 Tidewater Transportation & Terminals (operating as Tidewater Barge Lines and Tidewater Terminal Company) has operated a multicommodity transportation and terminal company based in Vancouver, Washington. The friendly expression on the company’s shipping containers reflects the attitude of about 330 safety and community-conscious employees but belies how complicated the barge business really is.
The Port of The Dalles has run marine facilities since the 1930s, but they are part of a larger mission to strengthen the local economy. They focus on regional economic development with a strong bent toward adding good-paying jobs in high tech, manufacturing and other industries.
The Atkinson Graduate School of Management at Willamette University has maintained its business accreditation by AACSB International—The Association to Advance Collegiate Schools of Business.
Like the advent of the locomotive, the cloud creates business opportunities that simply weren’t possible before now. Get up to speed fast in May at an exciting cloud-empowered Portland event.
Registration is now open for Portland Business Alliance’s Annual Meeting, one of the largest business gatherings in Portland each year.