Contributed by Erin Haswell, 2013 Lewis & Clark College Graduate in Economics and OEN Intern
Oregon Entrepreneurs Network is excited to report on the success of startup companies and angel investment through OEN’s Angel Oregon program! Since 2005, 468 companies have applied to OEN’s Angel Oregon, and 79 were selected to present. In 2013, OEN’s Angel Oregon had a record number of companies apply with 65 applications. From 2005 until 2012, $1.93 million has been directly invested through OEN’s Angel Oregon LLCs into the winning companies and there have been three favorable exits.
Beginning at OEN’s Angel Oregon 2007, Professor Rob Wiltbank, of Willamette University, has been researching the Angel Oregon companies who have presented since 2005. Professor Wiltbank is an expert on angel investing, worldwide, and is a renowned expert in the field. OEN is excited to share some highlights from his research. At the 2013 OEN Angel Oregon conference on April 17th, Wade Brooks from Willamette University gave a presentation on indicators from Rob’s research.
Attendees of the 2013 conference learned that OEN’s Angel Oregon alumni have had a significant increase in their economic impact this past year. In 2012, the total generated revenue from OEN’s Angel Oregon alumni was $84.6 million, a remarkable 47 percent increase from 2011! Furthermore, according to the presentation, if exited companies are included, total revenue is over $150 million. There were also changes on the investment side. Specifically, Brooks noted that the share of Angel Group Co-Investment has also increased over the past few years, from 41.4 percent in 2010 to 69.3 percent in 2012.
What is also noteworthy is that along with this increase in revenue, there has been an increase in full-time employment. The presentation indicated that between 2008 and 2012, full-time employment has increased by 80 percent, from 298 to 535 full-time employees. Furthermore, since 2011, full-time employment has increased by 16 percent. Revenue per full-time employee was $158,000 in 2012, a 27 percent increase from 2011. In the past year, OEN’s Angel Oregon alumni received $7.1 million in investment and since 2008, their cumulative investment funding is $88 million.
Additionally, Brooks presented information regarding the pre-money valuation of startup companies. In 2012, the median value of pre-money valuation was $2.5 million, and pre-money valuations ranged from $0.11 million to $6.6 million, with the first and third quintiles at $1.5 million and $3.7 million, respectively.
Another noteworthy remark from the presentation was that entrants of OEN’s Angel Oregon, regardless of whether they were a finalist or a winner, have continued to grow and secure funding. According to Wiltbank’s research, one significant result is that the returns have been essentially the same for finalist companies and for the winners of OEN’s Angel Oregon. The process of OEN’s Angel Oregon helps startup companies improve their business proposals and during they process they gain invaluable coaching and advice that can help their ability to obtain funding after the conference.
These are positive indicators and OEN is excited to help support startup companies and angel investors continue this positive growth. OEN hopes that the combination of the OEN’s Angel Oregon annual conference and a new year-round program will help to promote this goal. OEN’s Angel Oregon annual and year-round programs will continue to provide valuable support and advice to startup companies, helping them increase their likelihood of success and their contribution back to their local communities.
Wiltbank, Rob, Brooks, Wade T., and Willamette University. “Where Are They Now? Tracking the Angel Oregon Alumni.” Presentation, Oregon Entrepreneurs Network’s Angel Oregon 2013, Portland, April 17, 2013.