In the Last Year, Venture Capital Financing in Oregon Has Dropped Drastically
Venture Capital Financing: The amount of venture capital invested in new businesses in Oregon fell dramatically in 2022, coinciding with a nationwide trend.
Businesses in Oregon raised a total of $970 million in venture capital in 2017, according to statistics released late Wednesday night by the National Venture Capital Association and PitchBook. That is a 45% decrease from 2021, which is a higher percentage than the national reduction of 31%.
Venture Capital Financing In Oregon Dropped Drastically In The Last Year
The previous year saw a slowdown in venture capital investment due to a variety of factors, including rising interest rates and inflation, poor Wall Street returns, Russia’s invasion of Ukraine, and an uncertain economic future.
“Unable to justify the sky-high valuations seen in 2021, many investors are pulling back until the ecosystem returns to a more palatable normal,” PitchBook CEO John Gabbert said in a written statement on Wednesday. Gabbert made the remarks in response to a question about why so many investors are withdrawing their funds. Despite the significant drop, Oregon’s previous year total was the third highest in the previous ten years.
Agility Robotics, which is located in Corvallis and reported receiving a $150 million investment in April, looks to have raised the most capital of any Oregon firm. The business is building two-legged robots that walk in a manner similar to that of people utilizing technology that was created at Oregon State University.
The design of Agility’s robots makes it possible for them to carry items, climb stairs, and stack them. The business has high expectations that the robots would be useful in a variety of settings, including warehouses, industries, and package delivery.
Venture capital investors put their money into promising new businesses, betting that a small number of significant gains will more than compensate for a larger number of incremental losses. It is difficult to track venture activity because approximately 16,000 agreements were completed in the previous year, and the process of categorising startup funding is highly subjective.
Oregon venture capital funding fell sharply last year https://t.co/f8eNkUxVlh
— The Oregonian (@Oregonian) January 12, 2023
For example, PitchBook’s rankings do not include Agility’s investment round in any way, and it is unclear whether it was accounted for in the company’s total for Oregon. According to PitchBook, the largest round of funding in Oregon in 2017 was $9 million in MedZERO, a Portland firm that helps employees manage their health savings accounts.
In contrast to California and Washington, Oregon’s economy has never placed a high value on venture capital. However, the investments help to maintain a consistent rhythm of entrepreneurial activity within the state.
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