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. The cash infused by local venture capital firms often encourages investors from outside Oregon to chip in. Hence, funds provided by the Oregon Growth Account often work as leverage to further investment, which triggers a multiplier effect. In the long-term, the Group will conduct research , learn more about other vc programs, and develop a comprehensive, early seed capital program for Oregon.