Seed Stage Investing Creates Jobs...A Lot of Jobs
Seed Stage Investing in Oregon Creates Jobs, A Lot of Jobs.
When your goals and dreams are big, it's easy as an investor to feel like a small check is a drop in the bucket and it doesn't really make much of a difference. What kind of impact does seed stage investments actually have on the health and well-being of our economy?
We're so glad you asked.
In partnership with Colorado Lending Source and the U.S. Department of Labor and Statistics, we now know that startups in their first year of operation drive a significant amount of jobs being created in Oregon. In fact, without these investments the rate of new job creation in our state would be statistically Zero. Yikes.
The data from the U.S. Department of Labor and Statistics illustrates that without seed investing into Oregon companies the rate of job creation for our state would be statistically Zero.
If 100 businesses are funded, approximately 80% of the jobs created from that funding are retained at the end of the year, 70% the following year, and so on. This survival rate persists regardless of when the business is funded. In Oregon, most of our jobs are created by older, well-established firms, which is a missed opportunity that is also reaping unintended consequences in our state. It means downturns impact Oregon more severely, and judging by the spike in jobs created at year 25, these jobs are likely created as a result of corporate tax cuts and incentives. A much more expensive way to create jobs than seed stage investing.
For March 2010, the year end reporting showed 29,959 jobs created by seed funding with an average of 3.6 jobs per startup. 8 years later in 2018, 40% of these companies are still operational BUT those surviving 40% employ 28,959 employees. Which means they create 105% of the jobs.
Aside from wealth creation, seed stage investing stimulates vibrant growing economies. We believe it's imperative to keep the seed stage investing ecosystem strong and thriving.