The Oregon Promise
June 2026
Eric Rosenfeld
175 years ago, Oregon’s economic future was decided at the edge of the wilderness. At a fork in the Oregon Trail known as the “Parting of the Ways” in what is now Wyoming, exhausted emigrants faced a choice. One path was marked by a pile of gold-bearing quartz, indicating the way to California. The other was marked by a wooden sign carved with the word “Oregon.”
In that moment of divergence, the story of Oregon and California’s economies began to split into two very different futures.
Those driven by speculation and quick riches veered SW to the California gold fields. Those who could read followed the sign west to the Oregon Territory. While this may explain why Oregon has some of the busiest libraries in the country and is home to Powell’s City of Books, it also reveals something deeper about the temperament of the people who settler here.
Displacing Native peoples, Oregon was settled and built by pioneers in search of farmland and various versions of Eden. Those who chose Oregon did so deliberately, rejecting the allure of California gold and, by extension, the values it represented. Later in the 19th Century, another batch of emigrants faced a similar choice between Portland and its growing timber industry and Seattle, the staging area for the Klondike gold rush.
Farmers chose Oregon. And a farming mentality is very different from a prospecting mentality. Farmers look out for each other, are less likely to starve, and tend to accrue wealth at a more measured pace.
At the Oregon Venture Fund, the founders we back still carry a bit of that DNA. They talk about “collaborating to compete,” about mentoring anyone who asks for help, and about the importance of “corporate citizenship” – ideals personified by Sam Blackman, founder of Elemental Technologies. This ethos shows up not just in how companies are built, but in how they treat their customers, employees, and stakeholders.
It also shows up in the data. Compared with the Bay Area, VC-backed founders in Oregon and Southern Washington fail less often [roughly 50-60% vs 75-80% in the Bay Area] and tend to take a bit longer to exit [8 to 11 yrs. vs 7 to 10 in the Bay Area]. That extra time often stems from the pursuit of more responsible, sustainable growth.
The original Oregon promise for settlers rested on three pillars:
Fertile soil
Inexpensive farming
A better quality of life
That promise persists today for founders and venture investors.
Fertile Soil – In today’s venture economy, “fertile soil” is the concentration of talent capable of building top-tier growth companies. Our region has consistently produced such companies, most recently Jama, Inpria, Customer.io, Hydrolix, Eclypsium, Mueon, Ahead Computing, C1.ai, NAVEX, and ZincFive. Our worldclass talent base spans high-demand domains such as AI, cybersecurity, semiconductors, advanced materials, outdoor technology, e-commerce, fintech, and health tech. Our fertile venture ecosystem continues to grow category-defining companies.
Inexpensive Farming – The modern equivalent of inexpensive farming is the relatively low cost of entry into startups and the capital efficiency of building companies here. Compared with other coastal hubs, Oregon offers more value per dollar, across operating costs, cost of living, and access to experienced talent. Founders can stretch their cash runway, reach milestones on less cash burn, and maintain optionality around future financing. The founders of C1.ai, for example, relocated to Portland to tap into worldclass software and security talent that would have been either unavailable or prohibitively expensive in the Bay Area or Seattle. Founders and engineers in Oregon and Southern Washington are known for their scrappiness and resourcefulness, in sharp contrast to the “growth at any price” mentality that has often dominated the Bay Area.
Quality of Life – For modern Oregonians, quality of life can mean easy access to some of the most beautiful landscapes in the world; walkable neighborhoods, high quality, natural food; less traffic; and rich and varied arts and culture. It’s no accident that Oregon’s outdoor-centric lifestyle has supported global brands like Nike, Columbia, Adidas, GearUP, Keen, LaCrosse/Danner, Hydroflask, and Leatherman, and attracted Under Armour’s design & innovation center as well as North American HQ’s or equivalents for Snow Peak, Hoka, and On. Founders build differently when they live in a place they love and intend to stay.
When the Oregon Venture Fund began investing in startups with a presence in Oregon and Southern Washington, we didn’t know whether our geographic focus would be a performance advantage. Almost 20 years later, with a 3.1X avg net total return and 16% net IRR, the answer is clear: things are different here – and in many ways, better. The founders we have the privilege of working with are not only at the top of their fields and bursting with ambition; they are also, overwhelmingly, kind and decent people.
The Oregon promise – our competitive edge – is alive and well.