Last year, investment in Oregon companies declined even further, reaching its lowest level since 2017.
In 2024, Oregon’s entrepreneurs raised $555 million, a sharp drop from the $2.7 billion venture capitalists invested in the state in 2021 and an 8% decrease from the previous year. According to the most recent data from the investment data company PitchBook and the National Venture Capital Association, that is.
Venture money is sought after by entrepreneurs who want to quickly grow their modest enterprises into large ones. Investors are always searching for the next big idea, but the majority of these enterprises fail.
Internet security company Eclypsium, online data management company Hydrolix, and telehealth provider Boulder Care are among the Oregon startups that raised significant amounts of money last year. They all posted $35 million rounds.
Few of Oregon’s startup companies go on to become big, long-lasting enterprises, and venture capital has never played a significant role in the state’s economy. The impact of venture capital on local communities has been further undermined by remote employment, as many startups hire people from across the nation or the world.
However, venture capital brings hundreds of millions of dollars to Oregon annually, and the state’s startup industry is a never-ending source of ideas and ambition.
In 2024, venture activity increased nationally. According to NVCA/PitchBook data, investors closed $209 billion in agreements, a 30% increase from the previous year but still less than the $255 billion peak of 2021.
Few entrepreneurs are cashing out with substantial payouts, according to the venture capital association, either by selling to bigger companies or going public.
According to the group, inflation and the ensuing rise in lending rates made it difficult to buy and sell start-up businesses. The sluggish rate of firm departures is delaying new investment since investors depend on the proceeds from such deals to fund new investments.
According to the NVCA’s annual report, the market is now in wait, and indicators related to fundraising and dealmaking do not yet indicate appreciable rises in activity.
It predicted a gradual rebound starting in 2025, with markets rising, interest rates down, and the incoming Trump administration taking a more lenient stance on antitrust enforcement, which may make acquisitions simpler.
The Oregonian’s weekly examination of the state’s economic statistics is called Oregon Insight.Check out previous installments here.
–Mike Rogoway writes on the business and technology in Oregon. His email address is [email protected].
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