OregonStartups.com News

VC Investments Up in Oregon; 12% Down (or maybe Flat) Nationally

From VentureBeat: VC investments drop 12 percent from last year, fewest deals since 2005:

Venture capitalists invested $6.64 billion into U.S. companies in the second quarter, or 12 percent less compared to the same period last year, according to Dow Jones. Another research group, led by PwC and NVCA, reported flat growth from last year, although a decline from the first quarter.

On the other hand, as reported in the Oregonian (using Dow Jones data), Oregon investments were up (to $130 million) in the first half of 2008. Examples included:

• Castor & Pollux Pet Works, Clackamas: Organic pet food, $21.7 million
• NexPlanar Corp., Hillsboro: Semiconductors, $14.5 million
• Neopad, Hillsboro: Polishing pads for semiconductors: $14.1 million
• Wi-Chi, Tualatin: Semiconductors, $8 million
• Splashcast, Portland: online marketing, $4 million
• iMove Inc., Portland: video surveillance for defense and security, $4.25 million

iMove Closes $4.2M investment

The Portland Business Journal reported earlier this week that Portland-area startup iMove closed a $4.2 million venture capital investment. Oxantium Ventures, a new Washington DC based fund, was the lead investor.

How to Raise $25,000

One of the recurring themes in Rick Turoczy's "side project" session at BarCamp was the need for small amounts of funding to get some of those side projects onto the front burner and make them into companies.  Internet-based lending sites were mentioned.  Right on queue, there was an article on the Oregonian yesterday about just that topic.  They mention 5 players: Prosper.com, Zopa Inc., GlobeFunder Ventures Inc., Virgin Money USA and Lending club.

Many are turning to nontraditional sources, such as credit unions. Increasing numbers are going to online lending Web sites that cut out the traditional bank middleman and to factoring companies, which buy companies' future revenues. ... Prosper lent $81 million last year in an eBay-style marketplace, and expects to beat that number in 2008. Would-be borrowers choose their interest rate, which averages 7.8 percent to 15.6 percent for those with good credit. That's roughly comparable to the rates on unsecured loans for small businesses offered by Wells Fargo & Co. on its Web site and, CEO Chris Larsen said, much cheaper than rates on business credit cards.

$25,000 sounds like to top-end for this funding source

Though online lenders can offer better terms than credit cards, their products are limited. Most of the major sites' loans top out at $25,000. GlobeFunder says it will probably offer a new maximum loan amount of $100,000 in less than two months, but the SBA can guarantee loans of up to $2 million.

SAP Ventures, European Founders, and Intel Capital Invest in iovation

Fraud-protection company iovation announced a $15 million investment from SAP Ventures, European Founders, and Intel Capital

SplashCast Closes $4 Million Series A

The Portland Business Journal reported yesterday that local startup SplashCast has raised $4 million:

SplashCast, headed by CEO and founder Michael Berkley, had already raised $1.3 million from Portland and Seattle angel investors. A little more than half the company's total funding has come from angel investors.

New investor Mark Bayliss, an Australian advertising executive, led the latest portion of the Series A round. Bayliss will join SplashCast's board of directors.

Charlie Baker, an ex-Nike Inc. executive who is on SplashCast's board, has also invested in the Series A round, both as an individual and with his investment firm, Emergent.

Pulse Health lands $2.15M Series A

The Portland Business Journal reported that Portland-based Pulse Health closed a $2.14M series A investment from angel investors in Oregon, Washington and California:

The company's handheld breath device detects free radicals through a colorimetric reaction, and reactions are measured using a consumer-accessible spectroscope. Such health markers have traditionally been measured through blood or urine tests.

The free radicals measured by Pulse technologies are associated with premature aging, stress and disease states. This system allows consumers to measure their metabolic baseline, which can guide them in the creation of an individually tailored health and wellness program.

Tyfone raises "millions"

The Portland Business Journal reported that local startup Tyfone raised millions of dollars from a Singapore investor.  Tyfone develops banking technology for cell phones.

Oregon 2007 VC Investments Significantly Higher

According to data published this week by the NASVF, Oregon ranked #16 compared to other states in 2007 venture capital investment-dollars, with  $301 million invested in 40 deals.  Oregon received roughly 1% of 2007 VC investments in the U.S.   That's a lot better than the 0.58% Oregon received in 2005 and 2006.  Whether you look at total dollars, state ranking, or percent of deals, Oregon seems to be making headway.

Here is the State line-up in 2007:

State        2007 Deals    2,007 Dollars ($000)
CA              1564                13,802,961
MA                430                 3,489,131
TX                166                 1,416,470
WA               170                 1,314,590
NY                191                 1,195,328
PA                150                    835,166
MD                 99                    635,283
NJ                  91                    624,906
FL                  63                    608,338
NC                 69                    577,022
CO                 86                    564,200
IL                  70                    510,436
VA                 87                    463,099
GA                 73                    462,935
MN                 54                    427,163
OR                 40                    301,468

From 2005 to 2007, Oregon's trend was:

Deals            Dollars
27                    $134M
31                    $152M
40                   $301M

Elemental Technologies Closes $1 million Investment

The Silicon Forest Blog reported yesterday that Elemental Technologies has closed $1 million in investments from the Oregon Angel Fund, the Bend Venture Conference and the Seattle Alliance of Angels.

OAF Invests in Daverci Solutions

The Portland Business Journal reported this past week that the Oregon Angel Fund invested $205,000 in Daverci, a startup founded in 2001 to create an electronic medication management system for long-term care facilities and the pharmacies that supply them.