This document discusses a new Oregon law that allows communities to invest in local businesses through community public offerings (CPOs). The law enables citizens to invest directly in local enterprises and strengthen their economies. It creates opportunities for entrepreneurs to raise capital from within their communities. Since the law took effect in January, several Oregon companies have already raised over $100,000 from local investments of around $1,000 each. The document provides an overview of the CPO process and concepts like intrastate offerings, termsheets, and technical service providers. It also offers frameworks for evaluating local investment opportunities and examples of how individuals approach impact investing.

1. Raising Money
in Rural Oregon
New Law Lets Communities
Invest in Themselves
Photo here

2. Who are we?
2
Kristin Wolff
Hatch Board Member (& business owner,
policy analyst) @kristinwolff #socent
#unjobs #workoutloud #startup #realchange
Heather Stafford
Assistant Director of Innovation &
Entrepreneurship @heathastafford
Business Oregon @BusinessOregon
Lisa Dawson
Executive Director
Northeast Oregon Economic Development District
@NEODD (Born & raised in Joseph, OR)

3. Welcome!
• Oregonian?
• Business owner or aspiring
business owner?
• Involved in economic
development in your
community?
3

4. 4
And
congratulations
Your are now a
(potential)
investor too!

5. Today’s Goal
A shared understanding of the
law and the opportunities it
creates for entrepreneurs and
investors (that’s everybody) in
rural Oregon.
5
A shared understanding of the law and
the opportunities it creates for
entrepreneurs and particularly
investors (that’s everybody) in Oregon.

6. The Plan
• Introduction to the CPO
- Why & why now
- What
- How it supports NE Oregon’s
economic development strategy
• Personal Investment Framework
• Making it real! (Special guest: John
MacDougall)
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7. 7
Securities crowdfunding,
equity crowdfunding,
crowdvesting …

8. 8
Oregon, in good company

9. 9
Investing directly in the kinds of
businesses you want to see in
the world is awesome (and we’re
all figuring it out, together).

10. Investing in Ourselves
June 27, 2015
Heather Stafford – Asst. Director of Innovation & Entrepreneurship10

11. Grow our own

12. What we do
startupexpand recruit
Building blocks of economic development
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Innovation & Entrepreneurship Division

13. Grow Our Own
entrepreneurshipinnovation capital
Building blocks of I&E
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Community Capital or Compatible Capital

14. An Unprecedented Opportunity
for Oregon Businesses
Introducing Oregon’s
Community Public Offerings
Securities Crowdfunding

15. A (Surprisingly) Short History
• May 27 first statewide team meeting.
• Division of Finance and Corporate Securities
(DFCS) decided to make it law through Admin.
Rulemaking, 3 Formal Reviews, instead of the
much longer route of becoming a statute.
• Rules became law January 15.

16. Enable citizens to launch enterprises
that improve communities.
Work with a number of local partners to counsel,
mentor, and train small businesses.
Partners in the CPO Initiative

18. Why CPOs are Important
• Legal mechanism for entrepreneurs to
raise capital from the community
• Ordinary Oregonians and businesses
able now to gain (100 year apartheid)
• Entrepreneurs drive the deal
• Potential to inject hundreds of
millions of dollars into Oregon’s
economy (1% of Oregonian savings)
• Strengthen Oregon’s start-up culture
• Strengthen all regions of Oregon

19. Limiting Factors
• Credibility of Company
• Public Awareness of Opportunity
• Ability to Connect to Potential
Investors
• $250,000 Limit Raised by Company
• $2,500 Limit Invested by an Individual
in One Company

20. Current Status
1. Nine companies filed on Jan 15, and (7
days later) launched on Jan 22
2. In three weeks raised $100K ($207K today)
3. Average investment $1,000 (repeats)
4. Hatch provided over a dozen workshops
in preparation to the nine companies
5. Over 60 mentions in press (print, radio, TV)
6. Hatchoregon.com transactions

21. How Can You Be A Smart Investor?

22. • SEC: Securities and Exchange
Commission (federal regulating body)
• Term Sheet: an individualized written
outline for a company’s stock offering
• Intrastate: Oregon based companies
(80% or more assets located in
Oregon) selling to Oregon Residents
Terms to Know

23. • Technical Service Provider (TSP): a small
business development center used to
review the companies business plan
• Community Public Offering (CPO):
Securities as form of “Crowdfunding”
• Oregon Intrastate Offering Exemption
(OIO): Exemption from securities
registration for domestic offerings
Terms to Know

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The Tricky Stuff
1. Unregistered: No one looks at the documents
2. Waiting Period: 7 days after filing
3. Advertising = Offering: the business is very
limited in what can be seen by anyone
4. Self-certification: A person must click a button
such as: “I am an Oregon resident” then they
can see the ad and offering documents
5. Documentary Evidence: Copy of driver’s
license, check, bill – enables purchase of
securities

25. Key Rules –
what the entrepreneur has to file
441-035-0110 Required Filings
1. Letter to Director of the Department of
Consumer and Business Services
2. Submitted copy of all advertising
material
3. Statement of meeting with TSP
4. Executive Summary (owners, amount,
use of funds)
5. Copy of Offering Disclosures (see next
slide)

26. Key Rules –
what the entrepreneur has to create
to offer to investors
441-035-0120 Required Disclosures
• The Team
• The Business
What is it, its history & current health, use of funds,
and material facts (including any risks)
• The Detail of the Sale
Type, Deal, Terms & Minimum / Maximum

27. What Kind of Community Do You Want?
What Companies Would You Support?
What Difference Can We Make?
Some Thoughts...

28. 28

29. Businesses realize higher net incomes, create new, higher-wage jobs, increase product exports, consumers
spend and invest more within the region, non-profits and local governments meet needs and enhance
quality of life of citizens
Businesses are successful and adequately financed, individuals invest and spend money locally, locally-
produced food eaten in the region and more value-added food exported, more tourists spend more money
in the region, infrastructure meets demands of citizens, non-profits accomplish their missions, brownfields
returned to productive use, citizens informed and engaged, downtowns are vibrant
People will be trained, people and organizations will be assisted, projects will be developed and
implemented, funding will be invested
Activities will be conducted by NEOEDD staff and partners in each of the focus areas
Focus Areas: Entrepreneurial Development, Food System Development, Tourism Development, Non-Profit &
Government Support, Brownfields Redevelopment, Collaborative Planning, Partnerships, Leadership

30. • Partner Consensus
• Hire Hatch Innovation
• Develop Strategic Plan
• Establish Local Impact
Investing Opportunity
Networks
• Host Events – LIIONs, Speakers
• Offer Educational Workshops 30

31. Thinking About Local Investing
1.What makes it worth doing?
2.What kind of “returns” do you want?
3.How would you prioritize
opportunities you may choose to
review? (Price? Expected Return?
Timeline? Relationship? Impact?
Type of Deal?)
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32. www.HatchOregon.org
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33. 33

34. A Framework Focused on Community
1. Will it help stabilize and strengthen my local
economy?
2. Will it help start, expand, or support local
entrepreneurs?
3. Will it bring or maintain essential and/or desired
products and services that I want to see?
4. Will it circulate investing dollars in our region?
5. Will it forge key relationships with the business
community and citizens?
6. Will it help grow other forms of critical
community capital?

35. Marco Vangelisti’s Investment
Framework
Transactions
Relationships
Biophilia
Supportive
of Life?
Marco 8 min. http://vimeo.com/95210753

36. Investment Framework Example #2
4/2014 36

37. Investment
Framework
Examples

38. Special Guest
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John MacDougall
Founder, President
MacDougall Batmakers
Bend, OR

39. Thank You!
39
Lingering Questions?