introduction to community capital and local investing
TRANSCRIPT
Northeast Oregon
Community Capital
Collaborative
Baker, Union and Wallowa Counties
February 2014
Agenda
Welcome
Keynote – Amy Cortese
Tools to Implement & Examples
ChangeXchange Northwest
Opportunities to Get Involved
Networking and Discussion
Welcome & Background
Conducted community capital research
Discovered Springboard Innovation and ChangeXchange Northwest
Met with economic development partners
Determined community capital is good fit for Northeast Oregon
Partners
Baker County Chamber of Commerce
Wallowa County Chamber of Commerce
Union County Chamber of Commerce
Wallowa County Business Facilitation
BMCC Small Business Development Center
Baker County Economic Development Commission
Oregon Rural Action
City of La Grande, Urban Renewal Agency
Union County Economic Development Corporation
Slow Food Wallowas
Northeast Oregon Economic Development District
Rural Development Initiatives
YOU ?!?
Collaborative Funders
Committed:
The Ford Family Foundation (TA)
USDA Rural Business Cooperative Service
Oregon Community Foundation
Requested or Will Request:
Pacific Power
The Ford Family Foundation (Implementation)
Economic Development Administration
Amy Cortese
Welcome to Northeast Oregon!
What Is Crowdfunding?
A donation/gift made to a business,
person, or organization
Kickstarter and Indigogo are
well-known examples
Businesses offer rewards in
exchange for money
ChangeFunder is a new site focused
on northwest companies
Rail Rider
New and different
Attractive to many markets: cyclists, rail enthusiasts, nature-lovers, tourists looking for something to do
Relatively low-cost business to start (~$30,000 in equipment costs)
Rewards could be discounted or free rides
Lostine Tavern
First NE Oregon Campaign to be
featured on ChangeFunderhttp://changefunder.missioncrowdfund.com/en
Opportunity for the local
community and friends near and
far to support the start-up
Rewards will be fun!
What Is a Local Impact Investing
Opportunity Network?
Networking with a purpose + Education
Legal method for investors and
businesses to meet and establish a
personal relationship before discussing
an investment opportunity
Volunteers needed to help organize
events and prepare businesses to talk
about their businesses in the spotlights
Investor Interest
Woman wants to localize some of her retirement assets – has already made a few loans
Needs a way to find opportunities for investment, values personal interaction, part-time resident so has fewer local networks
She can make a loan or equity investment into a business
What Is a Direct Public Offering?
Publicly raised capital from any investor
Limit of $1 million
State approval process
Relatively low cost (~$25,000 for attorney and accountant)
Any stage of start-up or expansion
Any type of investment offering, the business owner structures the deal (equity, profit sharing, debt)
Completely legal (since 1934)
Local: Data shows that 80% of investors come from a 50-mile radius
Brewery Expansion
Popular, profitable, well-managed
brewery with a growing market share in
Oregon has opportunity to expand to
neighboring states
Needs $750,000 to expand facility
and purchase additional brewing
equipment and bottling line
Customers and investors believe in
potential of the business
What Is a Local Loyalty Point
Incentive System?
Fun way to reward customers for buying
locally
Retail, services, lodging, restaurants and
business-to-business
Businesses gain new customers and
retain more customers
Metrics document return-on-investment
Process is web-based and easy to use
Cross-Marketing Opportunities
Toy store and coffee shop discover they have mutual customers
Toy store rewards customers who spend $40 with a cookie from the coffee shop
Few customers redeem the cookie, but both businesses benefit with greater customer loyalty
What’s Next?
Professional Orientations
– Attorneys, accountants, bankers, financial advisors
Team Trainings
- Local Impact Investing Opportunity Network
- Local Loyalty Point Incentive System
First LIION Events
Educational Events for Businesses & Investors
Opportunities to Participate in Community Capital System
Opportunities to Get Involved
Leadership Team
Marketing & Communications Team
Local Loyalty Point Incentive System
Team
Local Impact Investing Opportunity
Network Team
Education Team
Attend a LIION or Educational Event
Brand/Image
What image or words come to mind
when you think of the
Baker, Union and Wallowa County
region?
Please share your ideas by writing or
drawing them on one of the flip charts.
What Do You Think?
Is this an effort that Wallowa
County should pursue as a
collaborative project and
request implementation
funding from The Ford Family
Foundation?
Networking & Discussion
Questions or input? Contact:
Lisa DawsonNortheast Oregon Economic Development District