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Oregon is investing in Oregon
In Oregon, we love dreamers. The State Treasury offers a suite of tools that are available to help businesses in Oregon prosper. The Treasury sponsors two funds that directly invest capital into the businesses with the best chances of success. The Treasury also is helping Oregon financial institutions safely receive public fund deposits, which allow banks and credit unions to turn around and make more loans on Main Street. The Oregon Growth Account and the Oregon Investment Fund finance promising entrepreneurs in Oregon and assist them in turning their proposals into profitable companies.
The Oregon Angel Fund and its
more than 80 members have invested over $6M to fuel the growth of 13 early stage companies over the past 3 years. OAF's $6M in seed investments has attracted an additional $35M in venture capital to Oregon and helped create some 340 jobs. Co-founder Oregon Angel Fund Through those two funds, more than $150 million has been invested in Oregon since 1996, and that capital has created more than 1,000 jobs. Those investments are vetted and handled by professional fund managers who have contracts with the state. The Office of the State Treasurer does not invest directly into individual companies. Both funds are investments and are expected to generate returns, so the funds are steered to companies with the best business plans. The Treasury also helps to make public fund deposits available so that Oregon financial institutions have more capital to lend, through the Time Certificates of Deposit program. The State Treasurer also is asking the Federal Deposit Insurance Corporation to raise the ceiling on insurance for public fund deposits, which will increase the dollars available to lend. In addition, the Oregon Investment Council - which oversees the investment of public trust funds in Oregon including the Oregon Public Employees Retirement Fund (OPERF) - has contracts with firms that operate venture and business opportunity investment funds. Those managers, who invest around the world, have been encouraged to seek profitable business opportunities in Oregon. Also, the Legislature has created tools in the Oregon Economic and Community Development Department to aid with business expansion and recruitment. Smart investments for future success We are constantly on the lookout for more of tomorrow's potential success stories. All Oregon startup ventures have the opportunity to access the funds in the Oregon Investment Fund and Oregon Growth Account. Business proposals are evaluated by independent fund managers, and then investments are made based on the best opportunities. So have a solid business plan. Oregon wants to help companies succeed, but the state has a fiduciary role and a legal obligation to make sure the money is invested wisely. The investments will help Oregon entrepreneurs, but also must drive superior market returns for beneficiaries. Fund managers do their homework, ask tough questions and invest in the most promising ideas. FREQUENTLY ASKED QUESTIONS How can I apply? Do you have a good idea and a plan? The doors are always open!
Where did the OGA and OIF come from? The Oregon Growth Account (OGA) was authorized by the Legislature in 1995 to spur more investment in Oregon, and to benefit Oregon public schools. The funds for the startup capital come from the Oregon Lottery, and the returns from Oregon Growth Account investments flow into the Education Stability Fund. So the OGA Board has asked the independent investment managers to be selective and focus on opportunities that are most likely to perform well. The Oregon Investment Fund (OIF) is managed and invested by Credit Suisse and was one part of the response by the Oregon Investment Council to a bill from the 2003 Legislature. That legislation said the state should look first in Oregon when investing $100 million in emerging growth businesses - while still adhering subject to fiduciary concerns. Oregon companies also can seek capital through the many private equity fund managers that manage separate Oregon trust fund investments. Can the Oregon pension fund invest directly into my company? No. All of the investments that involve funds from the Oregon Public Employees' Retirement Fund are handled through private sector fund managers, who vet proposals carefully to gauge the risk and how likely they are to be profitable. The Office of the State Treasurer does not make direct investments in any companies. What is the goal for investments of the Oregon Public Employees' Retirement Fund? There is only one goal: Investment returns. Under Oregon law, the Oregon Public Employees' Retirement Fund is managed for sole exclusive benefit of its members. As such, the fund managers look for opportunities that will meet the necessary returns for hard-working public employees, who need their retirement to be there when they are ready to retire. By maximizing investment returns, that management benefits taxpayers. That's because, if the PERS fund does not achieve the "assumed rate" of 8 percent, then public employers - many of whom are funded through tax receipts -- must make up the difference. More information is available from the Public Employees Retirement System. Can the PERS Fund be used for economic development? Yes, but only to the extent those investments that are deemed to have the best chance of achieving the sole goal of the Fund: to provide necessary returns on behalf of the fund beneficiaries. The state cannot sacrifice lower returns in order to meet a different goal, such as to promote a social policy or to spur economic development. State law says the "assets may not be diverted or otherwise put to any use that is not for the exclusive benefit of members and their beneficiaries" (ORS 238.660(2)). Other Oregon Resources for entrepreneurs Oregon Economic and Community Development Department Oregon Innovation Council Oregon Prospector.com - for businesses looking to expand or relocate. Entrepreneurial Development Loan Fund Oregon Entrepreneurs Network |
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