BEAVERTON STARTUP CHALLENGE
The initial cash investment, combined with mentoring and expert connections, has proven an effective strategy to help grow startups. In just over eight years OSC's Challenge companies have raised more than $100 million in additional funding.
For most companies, the Challenge investment gave them their first investor traction, establishing credibility needed to close further, larger rounds of funding.
Challenge Companies Succeed and Stay Local
A large majority (75%) of winning Challenge companies are still in business. A majority (63%) of them are still headquartered in Beaverton, and all but two (6%) are in the Portland metro area. Every selected company agrees to be headquartered in Beaverton for at least one year, and we actively work with them to stay and continue to grow in Beaverton.
Applications for the 2024 Beaverton Startup Challenge are now closed. The next application period will open in August 2024 for the 2025 Cohort of funded companies. More info to come in 2024!
OSC and Diversity, Equity, and Inclusion
The Beaverton Startup Challenge significantly outperforms much of the investment community when it comes to attracting diverse investors and startup company leadership.
- Investor demographics: Of current angel investors, 19 are persons-of-color (61%) and four are women (13%). In typical investment funds those percentages are in very low single digits (e.g., 3% Black investors, 1.3% Latino/a investors).
- Founder demographics: Founders of the 40 Challenge winners include 15 BIPOC (38%), 16 women (40%) and two veteran founders. For comparison, recent reports show that companies with women founders receive just 2.3% of venture capital funding, and only 2.4% of funding was allocated to Black and Spanish-speaking founders from 2015 to August 2020.
WHAT WINNERS RECEIVE
$25,000 convertible note investment
Introductions to Legal, Accounting, HR, and marketing services.
OSC's top-rated mentoring services, entrepreneur workshops, and more!
bEAVERTON STARTUP CHALLENGE FAQ'S
What is the Beaverton Challenge?
The Beaverton Challenge is a program sponsored by the City of Beaverton and Westside Startup Fund, LLC where four to five startups will be selected to receive a $25,000 cash convertible-note investment along with incubation services from the Oregon Startup Center (OSC). Our first 43 Challenge companies (Average 5 per year from 2016 through 2024) have closed more than $100 million in additional funding.
What is the time frame for the 2025 Challenge? Is there a fee?
We will begin promoting and accepting applications for 2025 Beaverton Startup Challenge in mid-August 2024. There is no fee to submit an application. Eight to ten semi finalists will be chosen by late October. These semifinalists will then give their investor pitch to our investor group. The finalists are announced by late November and the investments are made in early December.
What kind of startup should apply?
We are seeking for-profit, early-stage growth businesses with the ambition and potential to scale in a national or international market. Applicants should have two to five team members with at least one team member working on the startup full time. Applicants may be self-funded, grant-funded, and/or have investor funding of up to $250,000.
How much funding do I receive from OSC if I am one of the four or five finalists?
$25,000 in cash and services are given to each winning company $4,800 of which is allocated for mentoring, advising, business contacts, connections, and other community partner introductions. $20,200 net cash is paid to each finalist.
The winning companies sign a 2-year convertible note at 8% annual interest which is payable to Westside Startup Fund 10.
A convertible note is a short-term debt instrument that converts to equity upon a predetermined conversion event such as a future fundraising round or liquidation event such as an acquisition or IPO.
I have an idea for a startup but am not operating yet. Am I eligible?
You need to be beyond the “idea” stage to where you have at least done a significant amount of customer-need validation, and meet the criteria described in the answer to the previous question.
I'm applying outside of Beaverton. How do I know Beaverton is a good spot for my business?
As the home to both Tektronix and Nike, Beaverton is one of the most successful entrepreneurial cities in the state. The City of Beaverton is open for business and offers several services to help small businesses. As your company grows on the west side, you’ll benefit from some of the lowest business taxes in the Tri-County area.
Where will the office be located?
The Oregon Startup Center is located at the City of Beaverton Building - E-Suites.
12725 SW Millikan Way, Suite 300, Beaverton, OR 97005
Conference and training rooms are available by reservation to be used for team, investor, or vendor meetings. Wifi, white board, and a large screen are included.