Introduction to Community Capital and Local Investing
- 1. Northeast Oregon Community Capital Collaborative Baker, Union and Wallowa Counties February 2014
- 2. Agenda Welcome Keynote – Amy Cortese Tools to Implement & Examples ChangeXchange Northwest Opportunities to Get Involved Networking and Discussion
- 3. 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
- 4. 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 ?!?
- 5. Collaborative Funders Committed: USDA Rural Business Cooperative Service The Ford Family Foundation (TA) Oregon Community Foundation Requested or Will Request: Pacific Power The Ford Family Foundation (Implementation) Economic Development Administration
- 6. Amy Cortese Welcome to Northeast Oregon!
- 7. 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
- 8. 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
- 9. Lostine Tavern First NE Oregon Campaign to be featured on ChangeFunder http://changefunder.missioncrowdfund.com/en Opportunity for the local community and friends near and far to support the start-up Rewards will be fun!
- 10. 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
- 11. 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
- 12. 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
- 13. 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
- 14. 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
- 15. 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
- 17. 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
- 18. Opportunities to Get Involved Leadership Marketing Local Team & Communications Team Loyalty Point Incentive System Team Local Impact Investing Opportunity Network Team Education Attend Team a LIION or Educational Event
- 19. 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.
- 20. 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?
- 21. Networking & Discussion Questions or input? Contact: Lisa Dawson Northeast Oregon Economic Development District 541-426-3598 lisadawson@neoedd.org