From Hoodies to High Tech, This is Central Oregon’s Startup Scene
Long-distance backpacker James Parsons grew frustrated in his search for performance hiking garb made in an eco-friendly way, so he decided to make something himself. Today, he’s a business of one, sewing and shipping Bend Alpha Hoodies from his garage, the headquarters of his new business, Magnet Designs.
The story is emblematic of others in Bend who solved a problem or filled a market gap with a similar hero’s journey: Bend Research in the ‘70s, Deschutes Brewing in the ‘80s, and in the 2000s, Hydro Flask, Humm Kombucha, Ruffwear and G5 are some of Bend’s success stories. Post-pandemic, the local ranks of aspiring entrepreneurs are growing, and their business ideas are being received in a new era of the Central Oregon startup ecosystem. The long-supportive, talent-packed community is reinvigorated, evolving and growing.
Data Reveals Dynamics
“It’s rare for a city the size of Bend, less than 200,000 (population), to have the amount of startup activity that we have,” said Brian Vierra, venture catalyst director at Economic Development for Central Oregon (EDCO). In 2022, 3,304 new businesses launched in Deschutes County, compared to 1,613 in 2012, an increase of nearly 105 percent, according to Business Oregon, the state’s economic development agency. This puts the region in roughly the top one-third nationally. At the same time, Bend is one of six small cities of 1,334 in the country that ranked highest for the most startups per capita, according to a report by TheStreet.com.
EDCO takes a specific interest in startups, and Vierra said he is currently working with 80 early-stage startups—companies looking to scale their product beyond Bend and Oregon—connecting them to resources, from marketing and sales to operations and legal services. The numbers support Bend’s self-described startup economy, but what’s the reason? Rankings such as WalletHub’s recent survey placed Redmond 16th and Bend at 23rd among the nation’s “best small cities to start a business,” based on the business environment, business costs and access to resources. Vierra calls Central Oregon’s culture of collaboration its “secret sauce.”
Post-Pandemic Positivity
Since the pandemic, the widespread use of videoconferencing and other online collaborative tools has helped people start businesses anywhere in the country, if not the world, allowing Bend to become a chosen launch pad. “The technology is now available to hire people anywhere, really quickly, really easily and to get them to collaborate and work on a team without being in the same physical location,” Vierra said. “We might not have the capital or equity of a larger market like Seattle or Portland, but our competitive advantage is cooperation. That’s been an intentional push, and we did a lot to build that.”
To create a culture of collaboration for local startups, organizations and incubators have risen to help the region become an entrepreneurial hub. Through events such as Central Oregon PubTalks and Bend Venture Conference to High Desert Innovation Fest, the area’s veteran entrepreneurs are accessible and willing to help. “So many of our current successful startup owners can remember when they were new and looking for connections and resources,” Vierra said.
EDCO has boosted Bend’s reputation as a startup town by hosting the Bend Venture Conference (BVC), which began 20 years ago and has grown to be one of the largest angel conferences in the country. Each fall, finalists vie for investment awards from funds established by individual investors. Since it began, the conference has spurred more than $14 million invested in 59 companies. This interest in the startup economy pencils out. “The ROI [return on investment] justifies our focus on early-stage development,” Vierra said.
This led to the inception of the High Desert Innovation Week, which debuted in the fall, and was held the week before BVC. High Desert Innovation Week connected companies and investors from around the country with startup showcases, networking, talks from leaders in a range of industries, pitch events and investment awards. “In the last couple of years, we’ve started meeting up and connecting with more tech entrepreneurs,” said Kyle McLeod, founder of startup consulting company Cloud99 and one of the week’s organizers. “There are a lot of us, but it hasn’t always felt like an overarching community. We’ve become much more connected in recent years.”
Nurturing a New Local Sector
Fuel for Central Oregon startups also comes from organizations such as Cultivate Bend, which launched in February 2023 with the goal of creating an ecosystem of growth for consumer packaged goods, or CPG, in the natural products sector—think food, beverages, cosmetics and cleaning products. The trade organization’s board of directors includes Thomas Angel, co-founder of Altitude Beverages, and Paul Evers, CEO and co-founder of Riff and Crux Fermentation Project. In less than a year, they’ve attracted 177 new members.
Cultivate Bend is gaining both notice and momentum, with engagement from leaders such as those at the Oregon Department of Agriculture and Oregon State University’s food science department, explained Evers. The office of U.S. Sen. Ron Wyden also contacted the organization about ways to get federal programs to support food and beverage brands in Central Oregon.
Then, there’s Built Oregon, a Portland-based network and accelerator for Oregon consumer product companies, which collaborated with Cultivate Bend for its annual Built Festival, held in Bend this past fall. Marking the first time the event was held outside of Portland, it attracted 200 participants for discussions with industry founders and leaders. “We see people in the food and beverage industry who move here and feel like they need to reinvent the wheel, in terms of figuring out who they need to meet and connect with,” said Angel, of Cultivate Bend. “We’re here to speed up that process by helping plug entrepreneurs into our industry.”
Outdoor Industry Gains Steam
The outdoor sector has been fertile ground for Central Oregon businesses. Bend Outdoor Worx (BOW), a startup accelerator for outdoor-focused businesses, has been supporting entrepreneurs with mentorship, branding, e-commerce coaching, legal consulting and other resources since 2014. Co-founder Gary Bracelin said that during the pandemic, most outdoor-product companies saw business spike as people spent more time outside. Bend Outdoor Worx took a hiatus during the pandemic, then in 2022 launched an in-person and online hybrid version of its four-month program. Companies can participate in three in-person, intensive two-day sessions. The rest of the program is held online or in separate meetings.
Applications doubled the first year of the hybrid program, with roughly half of the startup founders hailing from New York, Austin, Denver and Memphis, and the other half from Central Oregon. “The pandemic spawned plenty of side hustles and latent entrepreneurs to just go for it,” Bracelin said.
Several local companies from the 2023 cohort experienced huge growth, including Broke Supply Company, a Powell Butte-based equine accessories and apparel company. The Robert Axle Project, another born-in-the-garage company manufacturing bicycle parts, upped its earnings to $4 million with BOW’s help. ToughCutie, a company dedicated to designing high-quality socks for women, reported a 10-fold revenue boost thanks to the incubator.
Success Leads to Success
Another indicator of startup significance is the plan for an Innovation District at OSU-Cascades, slated to open in 2028 as a base for research, technology commercialization, incubation and economic development. The 24-acre district will feature 500,000 square-feet of tech, light-industrial, office, commercial, experiential retail and multipurpose event and performing arts space, as well as workforce housing. It will also be the base for SnoPlanks Academy. Entrepreneurs James Nicol and Ryan Holmes founded Bend-based SnoPlanks, makers of bamboo snowboards, in 2012 and in December gifted the company to the campus to allow students real-world operations, leadership and management experience. In 2015, SnoPlanks won an early-stage award at the Bend Venture Conference and completed the BOW accelerator for outdoor companies. Soon, the company will provide training for future entrepreneurs.
It’s this cycle of success begetting success that is a hallmark of Central Oregon’s startup community. For EDCO’s Vierra, that also means seeing startups that scale, become profitable and employ 50 to several hundred workers. “We need more success stories…and recycling of capital,” he said, referring to the process of investors reinvesting capital acquired from successful companies into new startups. “That’s how it was for Silicon Valley,” he said. “It’s this virtuous cycle.”
That cycle isn’t set in motion, though, without ingenuity and support. Tosch Roy is 13 years down the trail of his entrepreneurial journey as founder of Free Range Equipment, maker of sport-specific, art-adorned backpacks. Like apparel-maker Parsons, Roy started out as a one-man show, sewing what he needed for his outdoor adventures. Today, Roy’s packs are sold throughout the United States—growth supported by the local startup landscape. The path to success of a new business is steep, twisting and sometimes precarious, but in Central Oregon, it’s not without a growing number of creative, expert guides to lead the way.
The idea for my company came during my time thru-hiking the Pacific Crest Trail. I came home wanting to do something that kept me involved in trail culture, let me be creative, let me live simply and let me treat other humans and the earth with respect. Magnet Designs is a culmination of all the skills, knowledge and values I’ve accumulated in my adult life.
Who were your early supporters?
I have a lot of trail friends from over the years who help me test gear, give input and model for me. More generally, I take inspiration from all the other cottage companies that are making gear in the USA with ethics and environmental consciousness. They show me it can be done.
What do you see as the biggest challenge or obstacle to success as a small business startup?
The biggest obstacle, in this industry, is competition from huge companies that make their gear overseas for literally less than $1 labor per garment. The amount of money that it frees up for them to use for marketing overwhelms the cottage brands so incredibly.But, there’s a growing market for locally made, craft clothing items using USA-made fabrics, made by craftspeople who live the lifestyle and truly know the products they are making—and why they are making them.
What opportunities are unique to a founding startup in Central Oregon?
For what I’m doing, being here is a fantastic opportunity. Bend is a brand. And it’s a heck of a playground for testing and developing gear to be used in extreme conditions. There is a strong community of backcountry people here to help with a lot of aspects of the business. People here tend to value what I am doing. Not much is made here, especially not outdoor clothing, so I definitely feel a groundswell
of support from the local area.
Triumph Outpost was born during a period of personal struggle and change in my life. My husband and I were raising small children at the time and had just moved to Bend. I ran a successful Etsy business sewing cloth diapers for a few years but was feeling burned out and needed a change. Then came the opportunity to travel to India and support an aftercare facility for young women rescued from trafficking there. My passion for that cause grew and my desire to start a small business to benefit its effort was born. Triumph Outpost is dedicated to serving the anti-trafficking effort, both locally and abroad, while pursuing community and collaboration locally to further benefit women entrepreneurs. It’s a broad vision but it’s been awesome to see what we have accomplished over the past eight years.
What organizations provided mentorship?
As a business, we have benefited from SCORE [mentorship] coaching and have appreciated the support we’ve received at COCC from the business department. Overall, our best support and mentorship has happened through building relationships with other vendors and small business owners that we have met over the years.
What opportunities are unique to launching a small business in here?
Oregon is a wonderful place to start a small business, especially one that is artistic or creative in nature. The small-business community is supportive and forward thinking which makes the process feel less daunting and overwhelming. The coalition of small-business owners, especially in the artistic community, make collaboration and support their first priority over competition, giving this community a unique sense of positivity.
Where do you see Triumph Outpost in the future?
Over the next five-10 years, I see us collaborating with multiple people and businesses to bring new projects to life. I would love to expand our reach into the wholesale market as well. This next year, I plan to work closely with Jill Crotwell of Stitch Leather—who manages the bulk of our production—to bring new ideas to fruition and expand our web offerings. We have big plans for Triumph Outpost and exciting new things on the horizon.
I was on a ride in the Badlands and the saddlebags I was using kept shifting to the side until they were completely sideways on my horse. They essentially were the same style of bags I’d been using since I was a kid. I thought, “this is ridiculous,” Ryan is an industrial designer who specializes in bags! We make rad, premium saddle bags, then literally go right out our back door and test them. I’ve also always wanted to do something to help horses. In order to inspire you need a pretty big platform. What better way than to make badass horse products and then lead by example when it comes to caring for horses.
What are your current plans to scale the company?
We are currently in that process. It’s a huge learning curve but there are so many incredible minds in Bend that are willing to help guide you if you are willing to learn. We will branch into wholesale in 2024 which will help grow the company. Currently, we are only direct to consumers.
What do you see as the biggest challenge or obstacle to success as a small business start up?
Being an entrepreneur takes a completely different mindset. It takes discipline, and you have to be willing to take risks and also work your buns off for not a whole lot of return in the beginning. My parents were entrepreneurs, so I grew up with the mentality a bit or it might have been a real wake up call. It’s a huge learning curve but there are so many incredible minds in Bend that are willing to help guide you if you are willing to learn.
What opportunities are unique to a founding startup in Central Oregon?
Bend Outdoor Worx is invaluable. Right at your fingertips are some of the most talented, brilliant, and giving people in the outdoor industry. It’s surreal that they are all so giving and willing to help.. We’ve lived all over the United States, and Bend has something really special for entrepreneurs.
The external answer is I was frustrated with the backpacks that I was using for climbing and backcountry skiing that were adequately simple and light but inadequately featured for each specific sport. I felt like both could be achieved, and I think I found that balance with our Raven and Big Medicine packs. The internal answer is I was going through the motions at college and looking for something more creative and fulfilling—I found that outlet in the form of stitching up backpacks for friends at school.
Who or what were/are your early mentors/supporters?
Ummm all of Bend? I reached out and talked to just about anyone that had business/life experience and would listen to my questions. Turns out that’s quite a lot of people in Bend. I’d be curious to see what kind of support you receive as a young, aspiring entrepreneur in other cities around the U.S. but I received no shortage of help here in Bend.
What opportunities are unique to a founding startup in Central Oregon?
The business community in Bend tends to be exceedingly giving with its time, and that’s made such a big difference for me. There’s also a decent amount of infrastructure for startups like the Bend Outdoor Worx, the Pub Talks that EDCO puts on as well as the Bend Venture Conference and Breakout events. I could keep going but those were the things that helped me get my foot in the door, learn how to talk the talk, and played a big part in leveling up Free Range.
Where do you see Free Range Equipment in five years, or how about in 20 years?
I just want it to be fulfilling and fun for all parties involved; I want it to produce a healthy profit (mostly so it’s stress-free) and operate in alignment with its mission and values. I’m not exactly sure what that’s going to look like yet, but if we can make those things happen, I’ll call it a success.
