Economic Development for Central Oregon

Cathy Carroll
The Bulletin

The inaugural Bend Venture Conference was hailed last year as a breakthrough for local economic development. This year, organizers are reaching beyond Oregon for investors and entrepreneurs to attend the conference.

Conference Chairman Erick Petersen, former vice president and general manager of Planar Systems, a high-tech company in Portland, said Bend's unique demographics make it an ideal entrepreneurial hub.

Luring investors and startups from beyond Oregon is an ideal way to showcase the area and attract more businesses,he said.The area's beauty is a magnet for successful business people and corporate refugees who still yearn to fulfill their business passions, he said. The conference, set for October, can serve to attract even more of those people - investors, as well as entrepreneurs and corporate refugees, Petersen added.

`They are ready to do the next thing,` he said. `A growing number of people who've made it and don't have to work anymore … or not work as hard … come to Bend or Aspen or Boulder (Colo.), lots of those kinds of destinations.

What is unique about Bend is that it has a vibrant economy. It's not just a retirement mecca,` he said.

Bend also is unique because it has many business experts who are willing to mentor startups, Petersen said. `There is a huge story to tell here in Bend in that it has a group available who can mentor, coach and support entrepreneurs in the early stages of their companies by acting as advisory committees, which are different from boards of directors, which typically have put their money into the company,` said Petersen, who started a business unit of Planar that grew to $100 million in revenue in three years. This year, conference organizers will focus on attracting businesses from Oregon, Washington, Montana, Idaho, northern California and Salt Lake City. Central Oregon got nonstop jet service to Salt Lake City in March.

Participating companies should be ready for seed financing of $100,000 to $500,000 or more, or be seeking early-stage financing of $1 million to $3 million or more, Petersen said.

Those kinds of companies are a `realistic fit` for Bend, Petersen said. They would likely attract angel investors who invest in private, start-up companies. They're not likely to attract venture capital, which typically comes from different sources. When companies approach $100 million in revenue or more, they typically seek venture capital of $5 million to $10 million, he said.

Venture capital conferences frequently focus on high-tech startups because they promise the biggest returns for investors. The Bend conference, however, will focus on seed-and early-stage companies, many of which are not high-tech, Petersen said. `We want to attract smaller or early-stage companies that want to start up or relocate here, and bring them to Bend to see what it has to offer,` he said.

The conference will feature keynote speaker Tim Boyle, president and chief executive officer of Columbia Sportswear Co. Columbia went public in March 1998 and in 2004 reported overall sales of nearly $1.1 billion.  A panel of investors will discuss their investment criteria, deal killers and what it takes to get funded. The committee will select up to nine entrepreneurs to pitch their companies, get feedback from the investor panel and answer questions from the audience. A networking reception will follow the conference.

Last year's event drew 195 attendees to the Tower Theater in Bend. The nine early-stage companies that presented were: Alpine Internet Solutions of Bend; Apex Construction Systems of Portland; Caffe Botanica of Eugene; Compli of Portland; Margent Development of Bend, Metolius Biomedical/Pleural Space Innovations of Bend; PV Powered of Bend; Rage Talent Management of Bend, and MediSISS of Redmond. 

MediSISS, a medical devices re-processor, did not reap any investment from the conference last year, but it didn't have positive cash flow, said Kirk Mansberger, MediSISS CEO. `We were just turning the corner on breaking even,` hesaid. `Now we're going into our third consecutive quarter of being cash-flow positive.` The growing company is seeking angel investors rather than venture capital, Mansberger said. In the last three years, the business has had a 30-fold revenue increase and increased the number of employees to 30 from three, he said.

One key to the event's success is the second year of sponsorship by Bank of the Cascades and Compass Commercial of Bend, Petersen said.

Co-hosting again are Oregon Entrepreneurs Forum and Economic Development for Central Oregon.

Cathy Carroll can bereached at 541-383-0304 or at ccarroll@bendbulletin.com