Oregon Insight: Entrepreneurship appears steady despite pandemic

Right here is The Oregonian’s weekly take a look at the numbers behind the state’s economic system. View past installments here.

Oregonians hold beginning new companies regardless of the coronavirus pandemic.

The state’s charge of latest enterprise formation has remained comparatively fixed since Oregon’s coronavirus shutdown started in March, in accordance with U.S. Census information, down simply 4% from the identical interval in 2019.

That’s a distinction to prior downturns within the Nineteen Eighties and in the course of the Nice Recession, in accordance with Josh Lehner of the Oregon Workplace of Financial Evaluation. Complete information on companies closures isn’t but accessible, however Lehner stated preliminary numbers point out shutdowns are growing however not at an alarming charge.

“To date the information factors towards an increase of enterprise closures however no actual decline in new enterprise formation,” Lehner wrote in an analysis last week. “Whereas not good, this is able to nonetheless be higher than these previous extreme recessions, and be much less of a drag in restoration.”

There’s no indication that Oregon enterprise capital exercise is falling off.

The most recent information out this month from business analysis agency PitchBook and the Nationwide Enterprise Capital Affiliation exhibits that Oregon startups raised $166 million final spring and one other $111 million in the course of the summer time. That’s completely in keeping with historic averages over the previous six years.

The Nice Recession coincided with a sort of startup renaissance in Oregon. With fewer jobs accessible at large tech firms, engineers appeared extra open to setting out on their very own or becoming a member of new companies on the early stage.

A half-dozen outstanding know-how companies emerged within the speedy aftermath of that downturn, amongst them Airship (previously City Airship), Puppet, Elemental Applied sciences, Jama Software program and Zapproved.

There’s no signal of an identical downturn in tech employment in the course of the coronavirus recession, at the very least not but, however there’s additionally no sign that startup exercise is dropping off, both. Final week, for instance, Albany startup Agility Robotics raised $20 million in new funding.

Mike Rogoway | twitter: @rogoway | 503-294-7699

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