In contrast, Washington was ranked 5th, and its vc investments account for 0.24 of its gross state product. Many believe Oregon has a financing gap that must be addressed. The gap is the difference between capital raised through friends and family and capital that a typical vc firm is willing to invest.
Capital follows opportunity.
Perhaps Oregon opportunities are merely overshadowed by opportunities in its neighbor states, namely California and Washington. The Oregon Growth Account, which started operating in the spring of 1999, was created by the State Treasurer's office to spark economic development and to channel millions of lottery dollars to local venture capitalists. The venture funds in turn sink the cash into young Oregon companies. Profits go back into the state's education endowment. Many recipients of the seed capital believe it is crucial to opening up doors to other capital.