John Wahrgren discusses capital, state benchmarks, and finance tools for emerging Oregon companies

1. Oregon Business Plan - Capital Issues Benchmarking States Finance Tools March 2010 John Wahrgren

3. Loan Credit-enhancements

4. Industrial Development Revenue Bonds

5. Tax Credit Incentives (Income/Property)

6. MetricsNote: Most states used public-private organizations as a means to deliver both earlier & later stage finance tools.

7. State Finance Tools Lifecycle-Stage Continuum Phase 0 Fund/Proof of Concept grants/Partner Connections Grants /Loans - royalty payback Angel Tax Incentive Commercialization Competitions Potential profitability State Venture Funds & Guarantees/Recruitment Incentives State Loan & Loan Enhancement Funds Angel/Grants Venture Capital Friends/Family/Founders/Corporate Investors Equity Markets/Banks Business not fully established TIME

9. “State” includes finance tools provided by a public and/or public-private organization. *Smaller Pop.: AZ/CO/CT/IN/IA/KS/KY/LA/MD/MA/MN/OK/OR/ SC/TN/UT/VA/WA/WI. Larger Pop.: CA/FL/GA/IL/MI/NJ/NY/NC/OH/PA/TX. Other: ME/NM. “Comparable State” Selection Process

11. A few states provide direct equity, although more offer fund-of-funds venture.

12. R&D tax credits (93% of states).

14. State Finance Tools Lifecycle-Stage Continuum Phase 0 Fund/Proof of Concept grants/Partner Connections Grants /Loans - royalty payback Angel Tax Incentive Commercialization Competitions Potential profitability State Venture Funds & Guarantees/Recruitment Incentives State Loan & Loan Enhancement Funds Angel/Grants Venture Capital Friends/Family/Founders/Corporate Investors Equity Markets/Banks Business not fully established TIME

16. Encourage pre-seed/start-up gap funding: foundation grants, loans with royalty payback, corporate partners, and increase early-stage Angel investor incentives.

17. Encourage networking – Angel/Venture.Policy Considerations: Early-Stage

19. Dedicate innovation funds.

21. Communicate early-stage policies & metrics.Policy Considerations: Early-Stage (continued)

23. Recapitalize current tools (e.g. OBDF).

25. New credit enhancement tools (e.g. Deposit Loan Program).

27. Design & implement metrics for all finance tools.